• - Government will achieve a surplus on its combined Current and Capital Account Budgets.
  - The Current Account surplus is forecast at $127,856,000; Capital Account net expenditures are forecast at $125,912,000. The Province therefore has a total Budgetary Contribution of $1,944,000 to be applied against its outstanding debt.
  - The projected gross Current Account expenditure is estimated to be $3,270,411,600; the gross Capital Account expenditure is projected at $272,804,300 for a total Current and Capital Account expenditure of $3,543,215,900.
  - The Province will have a total borrowing requirement for sinking funds and debt redemption of $101,930,000 in 1995/96 compared to a total borrowing requirement of $370,833,000 in 1994/95, for a significant reduction of approximately $269,000,000.

• - Restraint measures on all Government funded operations will continue during 1995/96.
  - Several one-time revenues have contributed to the projected financial position. Government will continue with sound fiscal measures in 1995/96.
  - No new taxes and no tax increases.
  - Newfoundland and Labrador Hydro will begin to remit dividends to the Province.
  - There will continue to be restructuring and re-organizations to improve efficiency of operations without impeding service to the public. Health and Education reforms and restructuring will continue as priority items. The Home Support Program will be consolidated in and delivered by the Regional Community Health Boards. - Government will establish five Government Service Centres across the Province, providing one-stop shopping for activities related to inspections, licences and permits for the general public.
  - In response to the Federal Government's announcement that it will be capping Canada Assistance Plan revenues, the Province has and will continue to review the impact of this measure on its ability to deliver its current social services programs. The Province will be developing a plan to deal with this revenue loss and minimize the impact on client services. In the meantime, certain measures will be taken in 1995/ 96 to control expenditures in the Social Services area.
  - The review of legislation and regulations under the Regulatory Reform Commission will conclude in 1995/96.

• - The creation of a new role for Enterprise Newfoundland and Labrador Corporation by adding the Fisheries and Farm Development Loan Boards to its mandate with a combined loan fund of $14,650,000. - Funding of $3,979,300 for the Economic Recovery Commission (ERC).
  The ERC will assume responsibility for the operation of the ACOA/Enterprise Network project and will devote its attention to the implementation of the 19 Economic Zones.
  - Implementation of the Economic Diversification and Growth Enterprises (EDGE) legislation.
  - New initiatives amounting to $10.5 million are reflected to support the aims of the Strategic Economic Plan.

• - The Strategic Initiative Program designed to provide meaningful employment opportunities for individuals will be funded at $10,600,000.
  - The Hibernia Training Initiative will be funded at $649,800.
  - Women Interested in Successful Employment (WISE) is funded for 1995/96.
  - The Youth Employment Strategy, which provides a program for educational, training and work opportunities for youth, is funded at the level of $1,898,600.
  - Funding of $1,400,000 will be provided for a wage subsidy program to encourage employers to hire recent graduates, the unemployed and the under-employed.
  - The Employment Opportunities program in the Department of Social Services is funded at a level of $11,500,000.

• - Funding of $18,299,000 is provided for construction in the education system.
  - Funding of $17,257,000 is provided for capital improvements in the health care system.
  - Approximately $82,807,000 will be earmarked for transportation projects.
  - The Canada-Newfoundland Infrastructure Program will provide for $40,000,000 in cash flow requirement for 1995/96. This will have a construction impact of approximately $85,000,000 in the upcoming year.
  - Except for those municipalities who can finance 100% of their obligations through NMFC, there will be a moratorium on new municipal capital works projects for 1995/96 that are not funded under the Infrastructure Program.

                                        
                     SUMMARY OF CURRENT REVENUES (By Source)
                           WHERE THE MONEY COMES FROM


      Percentage
       Of Total                    Source                            Amount
                                                                     ($000)
  Revised  Estimate                                          Estimate       Revised
  1994-95   1995-96                                           1995-96       1994-95

                        Provincial:
     17.4      17.0       Retail Sales Tax                    577,000       563,000
     14.7      16.2       Personal Income Tax                 552,000       475,900
      3.8       3.8       Gasoline Tax                        130,000       125,500
      2.4       2.2       Newfoundland Liquor Corporation      76,000        77,500
      1.6       1.7       Corporate Income Tax                 56,500        53,100
      2.1       2.0       Tobacco Tax                          66,500        66,500
     11.1      14.1       Other Provincial Sources            478,644       361,824
     53.1      57.0     Total: Provincial                   1,936,644     1,723,324

                        Government of Canada:
     29.4      28.2       Equalization Payments               958,000       952,800
      7.3       6.3       Established Programs
                             Financing Grant                  215,000       237,700
      6.3       5.7       Canada Assistance Plan              192,489       203,501
      3.9       2.8       Other Federal Sources                96,135       126,277
     46.9      43.0     Total: Government of Canada         1,461,624     1,520,278
    100.0     100.0     Total                               3,398,268     3,243,602

                              

              SUMMARY OF CURRENT ACCOUNT EXPENDITURES (By Function)
                               WHERE THE MONEY GOES

     Percentage
      of Total               Function of Expenditure                Amount
                                                                    ($000)
Revised     Estimate                                       Estimate         Revised
1994-95     1995-96                                        1995-96          1994-95
            Expenditure:
 21.3        21.1       Education                            715,528        692,352
 24.2        23.3       Health                               793,090        785,151
 16.4        16.2       Debt Charges and Other Financial
                           Expenses                          550,265        532,166
 14.3        14.1       Social Welfare                       480,265        464,826
  4.0         4.1       Natural Resources, Agriculture,      140,505        131,069
                       Trade, Industry and Tourism
  6.8         5.8       General Government                   196,193        219,895
  4.5         4.4       Protection to Persons and Property   148,280        145,009
  3.0         2.9       Transportation and Communications     99,554         96,308
  4.7         4.3       Other                                146,732        151,695

 99.2        96.2     Total: Expenditures                  3,270,412      3,218,471

  0.8         3.8     Financial Contribution                 127,856         25,131

100.0       100.0     Total:                               3,398,268      3,243,602

                               

                  SUMMARY OF GROSS CAPITAL ACCOUNT EXPENDITURES
                                  (By Function)

 Percentage
  of Total                   Category of Capital Expenditure       Amount 
                                                                   ($000)
Revised     Estimate                                       Estimate      Revised
1994-95     1995-96                                        1996-96       1994-95

            Expenditure:
 30.4        30.4       Transportation Projects              82,807       94,520
 24.8        11.9       Resource Development                 32,459       77,217
 20.6        30.2       Municipal Infrastructure             82,423       63,992
  5.9         6.3       Health Facilities                    17,257       18,422
  6.8         6.7       Educational Facilities               18,299       21,098
  6.6         6.7       Equipment Acquisitions, etc.         18,300       20,661
  4.9         7.8       Public Buildings                     21,259       15,365

 100.0      100.0     Total: Expenditure                    272,804      311,275

            Source of Financing:
 39.1        38.8        Government of Canada Revenues      105,749      121,736
  9.0        15.1        Provincial Revenues                 41,143       28,105
 51.9        46.1        Financial Requirement              125,912      161,434

 100.0      100.0     Total: Sources                        272,804      311,275

                                   

                     SUMMARY OF GROSS GOVERNMENT EXPENDITURES
                               CURRENT AND CAPITAL
                                   (By Sector)


                       (TOTAL EXPENDITURE: $3,543,215,900)

    GROSS GOVERNMENT EXPENDITURE            GENERAL GOVERNMENT SECTOR

                   Estimate  Percentage                      Estimate
Percentage
                     1995-96    of Total                       1995-96   of Total 
                      ($000)        %                            ($000)       %    

Sector Expenditure                     Consolidated Fund 
 General Government   942,570    26.6    Services               606,262    17.1 
 Resource             198,474     5.6  Executive Council         22,672     0.7
 Social             2,402,172    67.8  Finance                   44,179     1.2
                                       Legislature               11,551     0.3
Total: Expenditure  3,543,216   100.0  Public Service
                                         Commission               3,297     0.1
                                       Works, Services and
                                         Transportation         254,609     7.2
                                       Total: General
                                         Government Sector      942,570    26.6


            SOCIAL SECTOR                             RESOURCE SECTOR

                   Estimate  Percentage                      Estimate
Percentage
                   1995-96    of Total                       1995-96    of Total 
                   ($000)        %                            ($000)       %     

 Education and                         Environment              7,259     0.2
  Training            763,585  21.6    Fisheries, Food and
 Employment and                          Agriculture           31,197     0.9
  Labour Relations     29,763   0.8    Industry, Trade
 Health                933,083 26.4      and Technology        68,852     1.9
 Justice               114,320  3.2    Natural Resources       55,683     1.6
 Municipal and Prov-                   Tourism, Culture
   incial Affairs      185,048  5.2      and Recreation        35,483     1.0
 Newfoundland &                         Total: Resource
  Labrador Housing                              Sector        198,474     5.6
 Corporation           15,244   0.4      
 Social Services      361,129  10.2
 Total: Social
         Sector     2,402,172  67.8

                                   

                      SUMMARY OF BUDGETARY FINANCING SOURCES
               (For Gross Current and Capital Account Expenditures)


     Percentage
      of Total               Category of Financing              Amount
                                                       ($000)
Revised     Estimate                                         Estimate     Revised
Estimate    1995-96                                          1995-96      1994-95
                     Revenue Sources: 
 49.6        55.8       Provincial                          1,977,787   1,751,429
 46.5        44.2       Federal                             1,567,373   1,642,014

 96.1       100.0                                           3,545,160   3,393,443
  3.9           -     Budgetary Requirement                         -     136,303

100.0       100.0     Total: Sources                        3,543,216   3,529,746
                        Less Budgetary Contribution:          (1,944)       -
                      Gross Current and Capital
                          Expenditures:                     3,543,216   3,529,746