BUILDING ON A SOUND FOUNDATION

A BALANCED BUDGET

Mr. Speaker, it is my pleasure to present to this Honourable House today, a totally balanced Budget - a Budget that requires no borrowing, either for current account or for capital account; and, a Budget that requires no new taxes and no tax increases.

Our progress in deficit reduction over the last four years has been the most consistent of any government in Canada. This progress is a result of our comprehensive strategy to strengthen the foundation on which the fiscal, economic and social future of Newfoundland and Labrador will be built. It has been our objective to restore the fiscal flexibility of this Province, and we remain on course.

We have achieved a current account surplus in 1994-95. In our 1994 Budget, we committed to eliminating our current account deficit in 1995-96. We have delivered on that commitment one year ahead of schedule.

Last year, Premier Wells indicated that we would strive to achieve a totally balanced Budget by 1996-97. With the aid of some extraordinary revenues, we will deliver on that objective one year ahead of schedule.

But neither of these accomplishments can be one-time achievements. We must ensure that Government balances future budgets, and begins to reduce the debt burden that is the legacy of past deficits. The benefits of a deficit free Government to our generation will be substantial. The benefits of debt reduction to future generations will be immense.

Achieving our fiscal plan requires that we meet many significant challenges: major reductions in transfer payments from the Government of Canada; high public debt; a structural deficit; the need for economic renewal, particularly in light of the collapse of our groundfish industry; and unfunded liabilities in our public sector pension plans. We must overcome these challenges with a realistic plan and the determination to make it work.

THE FISCAL STRATEGY

Mr. Speaker, the first element in our fiscal strategy is to bring about change in the services we provide and the way they are delivered. The result must be more efficient, cost-effective and affordable government.

The second element in our strategy is to strengthen our revenue base by ensuring a growing, productive economy, and by attaining a more equitable transfer arrangement from the Government of Canada.

CONTROLLING OUR EXPENDITURES

Mr. Speaker, we must continue to implement less costly ways to provide public services, while improving the effectiveness,quality and delivery of core programs. In 1995-96, there will be additional restraints imposed on the operating spending of all government departments and agencies. Some measures will apply across all programs, others will be directed at specific programs and services. Some job losses will result.

We have made significant progress in rationalizing and restructuring both the management and the delivery of health programs through board restructuring, and by changing the role of some facilities to fit a more efficient regional service focus. These ongoing changes will enable quality health care to be provided in all regions of the Province in a cost-effective manner. Funding in 1995-96 will not be reduced from last year's level.

Commencing in 1995-96, responsibility for home care services, formerly provided by the Department of Social Services, will be transferred to the Department of Health. Services will be delivered through a single entry system which will provide for coordination and effective delivery of programs by regional community health boards, ranging from home care to high level nursing care.

Cost efficiencies in the education system will be achieved, partially through normal adjustments in response to declining enrolments. Implementation of the recommendations of the Royal Commission on Education also is contributing to a more efficient system. In addition, discussions have been renewed with church groups to pursue educational reforms which, when implemented, will create a more efficient system for the benefit of our students.

In line with restraint measures imposed across Government, the grant to Memorial University of Newfoundland and other post-secondary contributions will be reduced below 1994-95 levels. Government anticipates that these educational institutions will implement efficiency measures in order to avoid reductions in student access to education programs. We also expect that these reductions will not cause financial hardships to students or to the institutions themselves.

Mr. Speaker, the costs of social assistance, until now, have been shared equally in a longstanding partnership between the Province and the Government of Canada. The Federal Government has ended its equal cost-sharing commitment to social assistance by freezing their contribution for 1995-96 at the previous year's level. Unlike the situation in many provinces, the number of families needing assistance in Newfoundland and Labrador continues to rise. The federal restraint will create a shortfall of $15 million in social assistance funding in 1995-96. While basic assistance rates will remain unchanged, some benefits will have to be reduced, and other savings will be achieved through administrative efficiencies.

Achieving the reforms necessary to ensure sustainable services and affordable government must be undertaken with the cooperation and input of stakeholders. Mr. Speaker, this Government is committed to a process of open consultation.

Collective agreements providing for a continuation of compensation restraint in 1995-96 already have been negotiated with most bargaining units. The same restraints will apply to non-bargaining, management and executive staff, and Members of the House of Assembly.

This year Government will be consulting with employee representatives to develop an equitable approach to addressing the unfunded liability in public sector pension plans, which now has reached a level of $2.4 billion. We must act now to protect the Province's financial position over the long term, and to secure the pensions of our public employees. A solution must be found this year, and both Government and employees must contribute to that solution.

Also, we will seek the input of the Newfoundland and Labrador Federation of Municipalities before we determine future levels of funding and services we provide to municipalities. The Province traditionally has provided considerable funding and services to municipalities to assist them to provide basic services and make capital improvements. This relationship must be re-examined in light of prevailing fiscal realities.

The long-term viability of the Province's forest industry requires responsible planned management, through the development of new technologies and maintenance of silviculture efforts. The Federal Government will no longer cost-share forestry programs with the Province and the pulp and paper industry. Government has decided that in spite of the federal withdrawal, these programs must be substantially maintained, and the Province will be funding them in this Budget.

Mr. Speaker, as part of our deficit elimination plan, our capital account spending program for 1995-96 is lower than it has been in recent years. Despite this reduction, expenditures related to Hibernia and the national infrastructure program will help sustain a high level of capital investment and construction activity in the Province.

As part of our privatization initiative, we are taking steps to enhance the commercial viability of Newfoundland Farm Products Corporation. We are reducing the annual operating subsidy, and will discuss with management and employee representatives ways to achieve these reductions. Also, we will start phasing out the subsidy to broiler producers.

As another efficiency measure, the Farm Development Loan Board and the Fisheries Loan Board will be merged with Enterprise Newfoundland and Labrador. This measure will enhance service quality by increasing access to services for farmers and fishers through the regional office network.

We are continuing to consolidate the administration divisions of departments. This year the administration divisions in the Departments of Environment, Employment and Labour Relations and Tourism, Culture and Recreation will be merged into one unit.

Mr. Speaker, while these measures assist us in dealing with the problem this year, we also must address foreseeable fiscal challenges impacting upon subsequent years. In 1996-97, we will have about $160 million less revenue, because of the restraint of federal transfers for social programs and the extraordinary revenues realized in 1995-96. Growth in other revenue sources will be insufficient to offset this. We have begun the process of dealing with this challenge.

Government recognizes that it is difficult to effectively plan for the efficient long-term delivery of programs and services, when they are subject to the funding uncertainty inherent in an environment of continuing restraint. Government will immediately implement a process to develop multi-year operating plans for departments and agencies, as well as hospital and school boards.

Each department and agency will prepare a multi-year human resource strategy during 1995-96. This will allow for a gradual and orderly reduction of compensation costs, which now account for two-thirds of program spending. A planned approach will enable us to take maximum advantage of normal attrition within the public service to lessen our compensation needs.

STRENGTHENING OUR REVENUES

Mr. Speaker, expenditure measures are only one element of our fiscal strategy. We must continue to strengthen our revenue base - both transfers from the Government of Canada and our own tax sources.

Reductions in transfer payments for social programs announced in the 1994 and 1995 Federal Budgets will result in a revenue loss of an estimated $110 million in 1996-97, escalating to $160 million in 1997-98. These reductions will cause hardship in this Province, particularly if our social assistance caseloads continue to increase because of unemployment insurance reforms and the phase-out of assistance to people displaced as a result of the groundfish crisis.

Mr. Speaker, if transfers overall must be restrained as a part of federal deficit reduction, then the only way to treat all Canadians fairly and equitably is for the Government of Canada to allocate the remaining funds on the basis of demonstrated need. Funding must not be allocated on a per capita, or an historical share basis. The Constitution commits to ensuring reasonably comparable levels of services at reasonably comparable levels of taxation. Mr. Speaker, that commitment must be honoured!

In addition to attaining a more equitable fiscal transfer arrangement, we must pursue economic growth and job creation to strengthen the tax base of this Province and lessen fiscal as well as economic disparities.

Our Strategic Economic Plan continues to guide us toward long-term economic renewal. Consistent with the objectives and vision of this plan, Government has undertaken many initiatives designed to increase the attractiveness of the Province as a place to do business. These include the establishment of economic zones, tax reform, regulatory reform, and the recently enacted Economic Diversification and Growth Enterprises Act. In keeping with this strategy, the Province will implement a Scientific Research and Experimental Development tax credit in 1996, after consultations with the business community.

There are a number of positive signs in the Newfoundland and Labrador economy that give us cause for optimism. Our forest and mining sectors are performing strongly. Hibernia is proceeding on schedule. The Terra Nova oilfield is expected to be the next offshore development, and negotiations are being actively pursued with members of the Terra Nova consortium. Oil exploration is taking place on the west coast of the Province. There have been several significant mineral discoveries with development potential in the short term, including Voisey Bay, potentially one of the largest nickel-cobalt discoveries in Canada.

The rate of small business formation in this Province is amongst the highest in Canada. Several Newfoundland companies are making inroads in the growing high technology field. Newfoundland and Labrador has considerable tourism potential, and the Cabot 500 celebrations should generate considerable activity in 1997.

THE FISCAL PERFORMANCE - 1994-95

Mr. Speaker, during 1994, growth in the Newfoundland and Canadian economies exceeded expectations, contributing to higher than expected revenues from our own tax sources and from equalization payments. Expenditures also were somewhat higher than Budget, mainly because of increased social assistance and employment programs, and the decision to reduce public sector compensation restraints.

As a result, for 1994-95 we will achieve a surplus of $25.1 million on current account compared with a budgeted deficit of $24.6 million. Our net capital account spending also will be below Budget, by $10.7 million.

Mr. Speaker, our total budgetary requirement for 1994-95 will be $136.3 million. This is over $60 million below the amount estimated in the Budget, and is the lowest level of borrowing for budgetary purposes in 14 years. That, Mr. Speaker, is not projected. That is achieved.

Achieving the surplus on current account was made possible partly by the receipt of a $31 million payment from the Government of Canada to enable the Province to assume responsibility for the south coast ferry service. The balance of this $55 million agreement will be paid in 1995-96 and 1996-97. Even without this payment, our budgetary requirement would have been almost $30 million below our Budget estimate. Mr. Speaker, we have bettered our target.

-----------------------------------------------------------------
                                 Table 1 

                 SUMMARY OF 1994-95 FINANCIAL PERFORMANCE
                               ($ millions)
-----------------------------------------------------------------

                                    Budget     Revised
                                    1994-95    1994-95   Variance

Current Account

 Gross Expenditure                   3,171.2    3,218.5   (47.3) 
 Related Revenue                       332.1      391.7    59.6  
 Net Expenditure                     2,839.1    2,826.8    12.3  
 Provincial and Federal Revenues     2,814.5    2,851.9    37.4   
                  
Current Account (Deficit)/ Surplus   (  24.6)      25.1    49.7 

Capital Account

 Gross Expenditure                     300.0      311.2   (11.2) 
 Related Revenue                       127.9      149.8    21.9  
 Net Expenditure                       172.1      161.4    10.7  

Total Budgetary Deficit              ( 196.7)   ( 136.3)   60.4 
-----------------------------------------------------------------


-----------------------------------------------------------------
                                  Table 2

                         PROVINCE OF NEWFOUNDLAND
                         Main Economic Indicators
                            (percentage change)
-----------------------------------------------------------------

                                        1994              1995

Gross Domestic Product

 Nominal                                 5.8               6.3
 Real                                    3.4               3.0

Personal Income

 Nominal                                 1.5               2.5
 Real                                    0.2               0.8

Retail Sales

 Nominal                                 3.2               3.2
 Real                                    2.5               1.3

Investment

 Nominal                                13.1              10.9
 Real                                   11.8               7.0

Consumer Price Index                     1.3               1.6

Employment                               0.7               1.7

Unemployment Rate (percent)             20.4             
20.2
-----------------------------------------------------------------



THE FISCAL OUTLOOK - 1995-96

Mr. Speaker, in 1995, the Canadian economy is expected to continue to grow, although at a more moderate rate. The Newfoundland economy also will grow in 1995, albeit at a pace slower than the rest of the country. The goods producing sector, with the exception of the fishery, will contribute most to this growth.

Revenue growth from a stronger economy is not sufficient, by itself, to achieve a totally balanced Budget in 1995-96. The expenditure measures on both current and capital account contained in this Budget, when combined with dividends from Newfoundland and Labrador Hydro and extraordinary revenues, will allow us to eliminate our total budgetary requirement and achieve a small surplus in 1995-96.

The extraordinary revenue gains for 1995-96 will reduce net expenditures by about $90 million. They also will generate interest cost savings of about $8 million annually, reducing the deficit problems we must deal with in coming years. These extraordinary gains include: the second payment from the Government of Canada pertaining to the south coast ferry service; bringing into revenues accumulated sinking fund surpluses; and, proceeds from privatization of some government-owned corporations.

Mr. Speaker, Newfoundland and Labrador Hydro will pay the people of the Province a return on their investment in the electrical industry. Accordingly, Government will receive an annual dividend, starting in 1995-96. In the initial year, this dividend will be $19.6 million. The major portion of this dividend represents profits earned by Hydro on its electrical sales throughout Newfoundland and Labrador. The balance represents that part of the annual dividend which Hydro receives from Churchill Falls (Labrador) Corporation which is in excess of Hydro's cost of servicing the debt related to the purchase of shares in that corporation.

-----------------------------------------------------------------
                                  Table 3

                       ESTIMATED BUDGETARY POSITION
                               ($ millions)
-----------------------------------------------------------------

                                         Estimates     Revised
                                          1995-96      1994-95

Current Account

 Gross Expenditure                        3,270.4      3,218.5
 Related Revenue                            456.6        391.7
 Net Expenditure                          2,813.8      2,826.8
 Provincial and Federal Revenues          2,941.7      2,851.9

Current Account Surplus                     127.9         25.1

Capital Account

 Gross Expenditure                          272.8        311.2
 Related Revenue                            146.8        149.8
 Net Expenditure                            126.0        161.4

Total Budgetary Surplus/(Deficit)             1.9      ( 136.3)
----------------------------------------------------------------- 



Our total budgetary requirement for 1995-96 will be eliminated, and, on current and capital account combined we will achieve an overall surplus of $1.9 million.

Mr. Speaker, even without the extraordinary revenues, the esulting budgetary requirement of about $88 million for 1995-96 ould have represented a considerable improvement over previous years. It also would have represented a notable achievement in continuing the downward trend in deficits established over a five-year period.

OUR STRATEGY IS WORKING

Mr. Speaker, in 1995-96 the Province will achieve a balanced budget on current and capital account combined for the first time since Confederation. A consistent approach to prudent deficit reduction undertaken over several budgets, combined with some fortuitous factors, will allow us to realize that goal this year. Government is committed to seeing this objective achieved, and to seeing that this achievement will be a foundation on which future balanced budgets will be built.

There are many significant fiscal challenges ahead of us. No single budget can offer a solution to all of these challenges. But each budget must be an incremental step that makes its contribution to the restoration of fiscal flexibility to this Province. Each budget must build on the foundation of those that precede it, and become part of the sound fiscal foundation for those budgets that will follow it.

This foundation is essential to the attainment of our economic and social objectives. All Newfoundlanders and Labradorians, of present and future generations, will share in the benefits. There is simply no acceptable alternative. As a people, we will be able to enjoy the economic and social well-being necessary for a full and rewarding life in this Province only if a sustainable, sound fiscal foundation is built.

Mr. Speaker, this Budget is an integral component of that foundation. It will set us to work, better prepared to surmount the fiscal challenges which must be overcome to secure the future balanced budgets that this Province must, and will, achieve.

APPENDIX

SUPPLEMENTARY BUDGET DETAILS

GENERAL

The Province is projecting a surplus on its combined current and capital account budget for 1995-96, partly as a result of extraordinary revenues. The Budget provides $10,000,000 in new spending for Strategic Economic Plan initiatives. Most departments and agencies of Government have had their operating expenditures cut by a minimum of 3 percent. The Government remains committed to ensuring a positive business and service environment and is continuing its funding for regulatory reform. Administration divisions of the Departments of Environment, Employment and Labour Relations, and Tourism, Culture and Recreation will be consolidated. The 1994 federal budget announced that, starting in 1995-96, transfers to provinces under the Canada Assistance Plan would be capped at last year's level. This will cost the Province approximately $15,000,000. As a result, the Province will be implementing measures to save up to $10,000,000 in the social services and home support areas. Year two of the Master Agreement of the public sector wage restraint program is reflected. Government is committed to the principle of pay equity and funds are provided for its implementation throughout the general services and health care sectors of the public service. Government will be divesting itself of two Crown corporations(Newfoundland Hardwoods Limited and Hotel Buildings Limited) consistent with its theme of privatization. A $19,600,000 dividend will be received from Newfoundland and Labrador Hydro.

EXECUTIVE COUNCIL

Provision has been made to undertake additional work toward land claims settlements in Labrador. The Budget provides funds for the continuation of the Province's Strategic Social Plan. The Province will be hosting the annual Conference of Premiers in 1995-96, and funding is provided for this event. Funding is provided for the Provincial Advisory Council on the Status of Women.

LEGISLATURE

Funding is provided for the Select Committee of the House, which has been mandated to review all aspects of "Children's Interests".

PUBLIC SERVICE COMMISSION

Funds have been allocated to establish a service quality unit to increase awareness among all public servants of our service role in respect of our taxpayers. The Opening Doors Program is continuing and provides for a career development program for persons with disabilities.

WORKS, SERVICES AND TRANSPORTATION

The re-organization of the department which started in 1994-95 will be completed in 1995-96. A major effort will be undertaken to enhance the signage on the Province's main highways. $81,200,000 has been provided for the Province's highways. The Province will be assuming the ferry services currently being operated by Marine Atlantic on the south coast and the White Bay service. It is planned to provide daily service to all affected communities.

ENVIRONMENT

Funding is provided for completion of environmental pollution clean-up at high risk sites. Funding of $105,000 is provided to assist in the development of new consolidated environmental legislation for the Province. $41,000 is provided to develop an Integrated Pest Management Awareness Program for use within the Atlantic Provinces.

FISHERIES, FOOD AND AGRICULTURE

The Fisheries Industry Development Agreement will continue for 1995-96. The Province is phasing out its subsidies to the broiler industry. Reductions will be made to the price support paid to producers ($1,000,000). The operating subsidy paid to Newfoundland Farm Products Corporation will be reduced.

INDUSTRY, TRADE AND TECHNOLOGY

Additional funds have been provided for the identification of new business investments, trade opportunities and market development for the Province. Additional funds have been provided for the development of the Province's technology and information systems sector. Operations of the Fisheries Loan Board and the Farm Development Loan Board will be merged with Enterprise Newfoundland and Labrador. The Economic Diversification and Growth Enterprises (EDGE)Program is to be emphasized in 1995-96 and appropriate funds have been provided in this regard. The Economic Recovery Commission will continue the implementation of the 19 economic zones across the Province.

NATURAL RESOURCES

The Province will fund forestry initiatives of $10,000,000 to replace the long standing cost-shared agreement which the Federal Government is no longer supporting. Monies will be spent on forestry renewal work. The Canada-Newfoundland Cooperation Agreement on Mineral Development will continue for 1995-96. Over $3,000,000 has been provided to assist with a provincial insect control program. This program will be cost-shared with the paper mill operators. Work associated with monitoring and assessing the state of the Province's wildlife populations will be funded in 1995-96. Government will be eliminating funding for the Energy Efficiency and Alternate Energy Division.

TOURISM, CULTURE AND RECREATION

The Province will continue to fund the John Cabot 500th Anniversary Celebrations Corporation. Appropriations have been made for planning and development of the Newfoundland T'railway Park. Funding of $1,000,000 has been provided for the first year of a five-year program to enhance the provincial parks across the Province. There will be minor fee increases for use of provincial parks.

EDUCATION AND TRAINING

The Canada-Newfoundland Cooperation Agreement for Human Resource Development continues to be funded in the amount of $12,600,000 (gross). Funding of $18,299,000 is provided for construction in the education system. Memorial University's total grant is reduced by 2.2 percent from last year's level.

EMPLOYMENT AND LABOUR RELATIONS

The Youth Employment Strategy Program will continue to be funded in 1995-96. The Strategic Initiatives Program designed to provide meaningful employment opportunities for targeted individuals is funded at $10,600,000. The Preventive Mediation Program and funding for the Education and Research Centre will continue for 1995-96.

HEALTH

The Home Support Program ($20,000,000) has been transferred from the Department of Social Services to the Department of Health and will be delivered by the new regional community health boards. The restructuring process will continue through 1995-96 with a view to decreasing administrative costs while maintaining and enhancing patient care. There will be continued emphasis on day surgery, reduced length of hospital stays, and closure of underutilized beds. Funding of $17,257,000 is provided for capital improvements in the health care system. Changes to the benefits provided by the Medicare, Drug, and Dental programs will save $950,000.

JUSTICE

Funding is provided for legal research and advice associated with land claims settlements in Labrador. There will be minor fee increases for the securities and sheriff's office areas.

MUNICIPAL AND PROVINCIAL AFFAIRS Five "Government Service Centres" will be established across the Province. Funding of $40,000,000 is provided for the continuation of the Canada-Newfoundland Infrastructure Agreement for 1995-96 to meet cashflow requirements. Except for those municipalities who can finance 100 percent of their obligations through Newfoundland Municipal Financing Corporation (NMFC), there will be a moratorium on new municipal capital works projects for 1995-96 that are not funded under the Infrastructure Program. Total spending in the municipal sector is approximately $96,000,000. Consultations will be held with the Newfoundland and Labrador Federation of Municipalities to examine our current program of assistance to municipalities as well as other expenditure areas to achieve savings of $1,500,000 in 1995-96.

SOCIAL SERVICES There is continued funding of $11,500,000 for an Employment Opportunities Program specifically for social assistance recipients. The investigation program aimed at curtailing inappropriate use of social services programs continues and five additional staff are being added in 1995-96. Savings will be achieved in the delivery of social services programs through streamlining of certain non-basic allowances in response to the federal freeze on Canada Assistance Plan payments to the Province.


                                   STATEMENT I

                            NEWFOUNDLAND AND LABRADOR
                        SUMMARY OF BORROWING REQUIREMENTS

                          1995-96 and 1994-95 (Revised)

                                                  1995-96 Estimates             
 1994-95 Revised
                                         ($000)    ($000)    ($000)    ($000)

BUDGETARY REQUIREMENTS 

 Current Account:
    Gross Expenditure                 3,270,412           3,218,471
    Related Revenues (Note 1)           456,568             391,662
    Net Expenditure                   2,813,844           2,826,809
    Provincial and Federal Revenues   2,941,700           2,851,940

    Financial Contribution                      (127,856)            (25,131)

 Capital Account:
    Gross Expenditure                   272,804             311,275
    Related Revenues                    146,892             149,841
    Net Expenditure                               125,912             161,434

 TOTAL BUDGETARY (CONTRIBUTIONS) REQUIREMENTS     (1,944)             136,303

NON-BUDGETARY TRANSACTIONS

 DEBT RETIREMENT
    Redemptions (See Appendix II)        54,926             178,098
    Sinking Funds (See Appendix II)      48,948              56,432
                                                  103,874             234,530

 TOTAL BORROWING REQUIREMENTS (Note 2)            101,930             370,833




Note 1:  Newfoundland Government Sinking Fund surplus earnings for 1995-96
         include approximately $43 million relating to the early remittance of
         sinking fund balances which are currently in excess of the amount
         required to redeem the related debt.  In prior years, these earnings
         were only remitted to the Province when the related debt was retired.

Note 2:  General borrowings include capital market issues, short term credit
         and treasury bills.


                                  STATEMENT II
                                        
               COMPARATIVE SUMMARY OF CURRENT AND RELATED REVENUES
                           1995-96 and 1994-95 Revised

                                                  1995-96             1994-95
                                                Estimates             Revised
                                                   ($000)              ($000)
PROVINCIAL:

 Taxation:
    Retail Sales Tax                              577,000             563,000
    Personal Income Tax                           552,000             475,900
    Gasoline Tax                                  130,000             125,500
    Corporate Income Tax                           56,500              53,100
    Tobacco Tax                                    66,500              66,500
    Mining Tax and Royalties                       18,150              16,000
    Payroll Tax                                    76,000              75,000
    Other                                          25,400              24,980
                                                1,501,550           1,399,980

 General Revenues:
    Newfoundland Liquor Corporation                76,000              77,500
    Vehicle and Drivers Licences                   46,500              43,500
    Lottery Revenues                               70,000              68,000
    Registry of Deeds                              10,150               9,900
    Fines and Forfeitures                           8,950               8,750
    Other                                          43,106              18,848
                                                  254,706             226,498

 Expenditure Programs - Related Revenues:
    Recoveries - Sinking Fund Surpluses            70,633              19,249
    Interest Income                                15,067              13,504
    Other                                          94,688              64,093
                                                  180,388              96,846

TOTAL: PROVINCIAL REVENUES                      1,936,644           1,723,324

GOVERNMENT OF CANADA:

 Fiscal Transfer Payments:
    Equalization Payments                         958,000             952,800
    Established Programs Financing Grant          215,000             237,700
    Provincial Share of Utility Companies Tax         150               9,150
    Term 29 Award                                   8,000               8,000
    Statutory Subsidies                             1,754               1,754
    Fiscal Stabilization                            2,540              16,058
                                                1,185,444           1,225,462

 Cost Shared Programs:
    Canada Assistance Plan                        192,489             203,501
    Resource                                        9,684              14,129
    Offshore Fund                                   5,898               3,483
    Human Resources Development                    16,769              14,262
    Native Peoples                                  7,876               7,996
    Other                                          43,464              51,445
                                                  276,180             294,816

TOTAL: GOVERNMENT OF CANADA REVENUES            1,461,624           1,520,278

TOTAL: CURRENT AND RELATED REVENUES             3,398,268           3,243,602


                                  STATEMENT III
                                        
               SUMMARY OF CURRENT AND CAPITAL ACCOUNT EXPENDITURES
                           1995-96 and 1994-95 Revised
                                        
                                            1995-96                     1994-95
                               Gross        Related       Net           Revised
                            Expenditure     Revenue   Expenditure        (Net) 
                                  $            $            $               $  

General Govermment Sector

 Consolidated Fund
  Services                  606,262,300 105,440,100   500,822,200   532,829,900
 Executive Council           22,672,100     886,600    21,785,500    21,824,800
 Finance                     44,179,300  49,149,700   (4,970,400)    26,660,200
 Legislature                 11,550,700     212,500    11,338,200    11,514,000
 Public Service Commission    3,297,100     378,900     2,918,200     2,451,400
 Works, Services and
  Transportation            254,609,600  92,055,000   162,554,600   149,722,000

Resource Sector

 Environment                  7,259,400   1,199,800     6,059,600     7,290,600
 Fisheries, Food and
  Agriculture                31,196,600   3,860,300    27,336,300    30,134,100
 Industry, Trade and
  Technology                 68,851,700  32,075,600    36,776,100    47,954,800
 Natural Resources           55,683,100   8,117,000    47,566,100    56,188,700
 Tourism, Culture and
  Recreation                 35,482,400  10,263,100    25,219,300    25,222,500

Social Sector

 Education and Training     763,584,800  27,352,700   736,232,100   742,661,300
 Employment and Labour
  Relations                  29,762,500  10,691,600    19,070,900    24,545,600
 Health                     933,082,500  48,977,300   884,105,200   870,751,600
 Justice                    114,320,400   5,544,300   108,776,100   107,199,400
 Municipal and Provincial
  Affairs                   185,048,100  42,299,400   142,748,700   136,505,100
 Newfoundland and Labrador
  Housing Corporation        15,244,400   2,000,000    13,244,400    15,107,000
 Social Services            361,128,900 162,955,900   198,173,000   179,679,800

TOTAL                     3,543,215,900 603,459,800 2,939,756,100 2,988,242,800



                           AMOUNT TO BE VOTED 1995-96

    Gross Current and Capital Expenditure                         3,543,215,900
    Less: Expenditures Approved by Statute:
           Interest                                   540,834,300              
           Pensions and Gratuities                     52,962,400
           Debt Management Expenses                     3,361,000
           Issues under Guarantee                       1,000,000
           Salaries (Auditor General)                      93,800   598,251,500

    Amount to be Voted by Supply Bill                             2,944,964,400


                                  STATEMENT IV
                                        
                     SUMMARY OF CURRENT ACCOUNT EXPENDITURES
                           1995-96 and 1994-95 Revised
                                        
                                                1995-96                1994-95
                                     Gross      Related      Net       Revised
                                  Expenditure   Revenue  Expenditure    (Net) 
                                     ($000)     ($000)      ($000)      ($000)

General Government Sector
 Consolidated Fund Services           605,185   105,439      499,746   532,254
 Executive Council                     22,672       887       21,785    21,825
 Finance                               44,179    29,363       14,816    37,648
 Legislature                           11,551       213       11,338    11,514
 Public Service Commission              3,297       379        2,918     2,451
 Works, Services and Transportation   147,173    30,455      116,718   101,767

Resource Sector
 Environment                            7,259     1,200        6,059     7,291
 Fisheries, Food and Agriculture       26,098     3,209       22,889    26,332
 Industry, Trade and Technology        50,159    12,693       37,466    31,144
 Natural Resources                     50,338     5,122       45,216    39,955
 Tourism, Culture and Recreation       30,723     4,749       25,974    25,881

Social Sector
 Education and Training               738,921    26,740      712,181   720,415
 Employment and Labour Relations       29,763    10,692       19,071    24,546
 Health                               909,826    48,317      861,509   847,519
 Justice                              114,320     5,544      108,776   106,449
 Municipal and Provincial Affairs     102,975     6,610       96,365    95,056
 Newfoundland and Labrador Housing
  Corporation                          15,244     2,000       13,244    15,107
 Social Services                      360,729   162,956      197,773   179,655

TOTAL                               3,270,412   456,568    2,813,844 2,826,809


                                   STATEMENT V

                     SUMMARY OF CAPITAL ACCOUNT EXPENDITURES
                           1995-96 and 1994-95 Revised
                                        
                                                             1995-96           
1994-95

                                      Gross     Related      Net       Revised
                                  Expenditure   Revenue  Expenditure    (Net) 
                                     ($000)      ($000)    ($000)       ($000)

General Government Sector
 Consolidated Fund Services             1,077         1        1,076       576
 Finance-                              19,787  (19,787)     (10,988)
 Works, Services and Transportation   107,436    61,600       45,836    47,955

Resource Sector
 Fisheries, Food and Agriculture        5,099       651        4,448     3,803
 Industry, Trade and Technology        18,693    19,382        (689)    16,811
 Natural Resources                      5,345     2,995        2,350    16,234
 Tourism, Culture and Recreation        4,760     5,514        (754)     (659)

Social Sector
 Education and Training                24,664       613       24,051    22,246
 Health                                23,257       660       22,597    23,232
 Justice-                                   -         -          750
 Municipal and Provincial Affairs      82,073    35,689       46,384    41,449
 Social Services                          400         -          400        25

TOTAL                                 272,804   146,892      125,912   161,434

Note:    For details refer to EXHIBIT XIII.

                               STATEMENT VI
                  SUMMARY OF RELATED REVENUES AND EXPENDITURES
                           BY MAIN OBJECT AND SECTOR
                          1995-96 and 1994-95 Revised

                            General
                         Government Resource    Social             % Of    Total
                             Sector   Sector    Sector     Total 1995/96  1994/95
                            1995/96  1995/96   1995/96   1995/96  Total   Revised
                             ($000)   ($000)    ($000)    ($000)     %    ($000)

Current:
  Salaries                   99,358   57,007   138,124   294,489    9.0    288,401
  Employee Benefits          92,758      620     1,484    94,862    2.9    120,277
  Transportation and
   Communications             8,994   11,370    14,899    35,263    1.1     32,406
  Supplies                   32,129    5,866    13,472    51,467    1.6     49,442
  Professional Services       5,045    6,031    49,959    61,035    1.9     55,736
  Purchased Services         34,171   21,514    19,590    75,275    2.3     68,832
  Property, Furnishings
   and Equipment                642    1,495     1,749     3,886    0.1      4,683
  Loans, Advances 
   and Investments                2        -         -         2      -          2
  Allowances and Assistance   4,610      318   368,748   373,676   11.4    345,455
  Grants and Subsidies        7,554   57,959 1,647,934 1,713,447   52.4  1,696,200
  Debt Expenses             542,006        -     4,899   546,905   16.7    530,915
  Information Technology      6,788    2,397    10,920    20,105    0.6     26,122
Gross Current Expenditure   834,057  164,577 2,271,778 3,270,412  100.0  3,218,471
  Federal Revenue Sources    21,906   20,221   234,053   276,180   60.5    294,816
  Provincial Revenue
   Sources                  144,830    6,752    28,806   180,388   39.5     96,846
Total Current Related
   Revenues                 166,736   26,973   262,859   456,568  100.0    391,662
Net Current Expenditure     667,321  137,604 2,008,919 2,813,844         2,826,809
Capital:
  Salaries                    6,786      130       290     7,206    2.6      7,372
  Employee Benefits               -        -         1         1      -          1
  Transportation and
   Communications               845        -       100       945    0.4      1,188
  Supplies                    1,407       25        11     1,443    0.5        967
  Professional Services       5,180      100     1,084     6,364    2.3      7,592
  Purchased Services         96,967    4,460     9,002   110,429   40.5    114,882
  Property, Furnishings
   and Equipment             10,830    2,110     9,516    22,456    8.2     38,787
  Loans, Advances and
   Investments                1,000   16,811       350    18,161    6.7     26,662
  Grants and Subsidies        2,599   10,261    89,041   101,901   37.4    110,079
  Debt Expenses                 699        -     3,199     3,898    1.4      3,745
  Expenditure by Sector
   before Recharges         126,313   33,897   112,594   272,804  100.0    311,275
  Voted in Other Depart-
   ments and Divisions        5,862        -    17,800    23,662            23,759
  Recharged to Other Depart-
   ents and Divisions      (23,662)        -         -  (23,662)          (23,759)

Gross Capital Expenditure   108,513   33,897   130,394   272,804           311,275
  Federal Revenue Sources    58,000   11,447    36,302   105,749   72.0    121,736
  Provincial Revenue
   Sources                   23,388   17,095       660    41,143   28.0     28,105
Total Capital Related Revenues     
                             81,388   28,542    36,962   146,892  100.0    149,841
Net Capital Expenditure      27,125    5,355    93,432   125,912           161,434

Total Net Expenditure       694,446  142,959 2,102,351 2,939,756         2,988,243


                                    EXHIBIT I
                                        
                          SELECTED ECONOMIC STATISTICS
                                  1991 to 1994

                                     %               %               %  
                             1994 Change     1993 Change     1992 Change   1991

Population (000's)
   -as of July 1            582.4   -0.3    584.4    0.1    583.7    0.6  580.3
Gross Domestic Product
 ($ Millions)*              8,573    5.8    8,104    0.9    8,032    0.0  8,034
Total Personal Income
 ($ Millions)              10,294    1.5   10,139    1.3   10,009    2.6  9,759
Per Capita Personal
 Income ($)                17,675    1.9   17,349    1.2   17,148    2.0 16,817
Labour Force (000's)
 (Annual Average)             244    1.1      242   -0.5      243   -2.1    248
Employment (000's)
 (Annual Average)             195    0.7      193   -0.4      194   -4.3    203
Unemployment Rate (%)
 (Annual Average)            20.4    1.5     20.1   -0.5     20.2   10.4   18.3
Wages and Salaries
 ($ Millions)               4,704    3.0    4,567    0.9    4,526   -1.9  4,614
Consumer Price Index
 (1986 = 100) (Annual
 Average) (St. John's)      125.9    1.3    124.3    1.7    122.2    1.1  120.9
Total Volume of Fish
 Landings (Thousands of
 Metric Tonnes
 (Roundweight))             131.6  -45.8    242.7  -14.3    283.2  -33.2  423.9
Total Value of Fish
 Landings ($ Millions)      212.1    9.2    194.2   -2.5    199.1  -23.8  261.4
Pulpwood Production
 (000 Cubic Metres)           N/A    N/A    1,879   12.1    1,676   -1.8  1,706
Newsprint Shipments
 (Thousand Tonnes)          736.6    4.7    703.9    5.6    666.6    4.8  636.0
Iron Ore Shipments
 (Millions of Metric Tonnes) 20.9   14.8     18.2    2.8     17.7  -10.6   19.8
Gross Value of Manufacturing
 Shipments ($ Millions)**   1,410    4.3    1,351    5.5    1,280  -11.6  1,448
Private and Public Capital
 Investment ($ Millions)    2,811   13.1    2,485   19.4    2,080   -0.9  2,099
Dwelling Starts (Number)    2,243   -6.7    2,405    5.9    2,271  -19.9  2,836
Retail Trade ($ Millions)   3,433    3.2    3,328   -0.9    3,359   -1.0  3,394
New Motor Vehicle Sales
 (Number)                  20,225    3.5   19,544    0.7   19,410   -4.8 20,384
                                                                               

*  at Factor Cost
** 1993 and 1994 estimated by Economics and Statistics Section, Cabinet        
   Secretariat
N/A - Not Available

Notes:    (1) Some data are preliminary.
          (2) Some percent changes are based on unrounded data.

Source: Statistics Canada; Economics and Statistics Section, Cabinet           
          Secretariat


                                EXHIBIT II

                  ESTIMATED PROVINCIAL AND FEDERAL REVENUES

                        1995-96 and 1994-95 Revised                       

                                                         1995-96        1994-95
                                                       Estimates        Revised
                                                         ($000)          ($000)
PROVINCIAL TAX SOURCES:
   Retail Sales Tax                                      577,000        563,000
   Personal Income Tax                                   552,000        475,900
   Gasoline Tax                                          130,000        125,500
   Corporate Income Tax                                   56,500         53,100
   Tobacco Tax                                            66,500         66,500
   Mining Tax and Royalties                               18,150         16,000
   Payroll Tax                                            76,000         75,000
   Insurance Companies Tax                                17,300         17,000
   Corporate Capital Tax                                   5,900          5,780
   Forest Management Tax                                   2,200          2,200

TOTAL: Provincial Tax Sources                          1,501,550      1,399,980

OTHER PROVINCIAL SOURCES:
   Newfoundland Liquor Corporation                        76,000         77,500
   Vehicle and Driver Licences                            46,500         43,500
   Lottery Revenues                                       70,000         68,000
   Registry of Deeds                                      10,150          9,900
   Fines and Forfeitures                                   8,950          8,750
   Inland Fish and Game Licences                           2,800          2,800
   Registry of Bills and Sales                             1,950          1,850
   Crown Lands                                             2,050          2,350
   Foresty Royalties and Fees                              1,200          1,150
   Offshore Revenue Fund (Note 1)                         24,200              -
   Water Power Rentals                                     3,800          3,800
   Other                                                   7,106          6,898

TOTAL: Other Provincial Sources                          254,706        226,498

TOTAL: PROVINCIAL SOURCES                              1,756,256      1,626,478

GOVERNMENT OF CANADA:
   Equalization                                          958,000        952,800
   Established Programs Financing                        215,000        237,700
   PUITTA                                                    150          9,150
   Term 29 Award                                           8,000          8,000
   Statutory Subsidies                                     1,754          1,754
   Fiscal Stabilization                                    2,540         16,058

TOTAL: GOVERNMENT OF CANADA                            1,185,444      1,225,462

TOTAL: PROVINCIAL AND FEDERAL REVENUES                 2,941,700      2,851,940

Note 1:   This item reflects a one time transfer of gross revenues from the
          Offshore Revenue Fund for the period 1986-87 to January, 1995.  The
          net impact on total revenues after equalization would be about $7
          million.


                                    EXHIBIT III
                                        
                            CURRENT AND CAPITAL REVENUES
                           PROVINCIAL AND FEDERAL SOURCES
                                        
                                 1991-92 to 1995-96

          1995-96              1994-95          1993-94             1  992-93         1991-92
         Estimates             Revised          Audited               Audited         Audited
           ($000)      %       ($000)      %       ($000)     %     ($000)     %    ($000)    %
 
Current Revenues:

Provincial
 Sources   1936644  57.0       1723324     53.1     1679884  54.7   1677117  55.1   1662767 55.7
Federal
 Sources   1461624  43.0       1520278     46.9     1391642  45.3   1367284  44.9   1325070 44.3

Total: Current
 Revenues  3398268   100       3243602      100     3071526   100   3044401   100   2987837  100
 
Capital Revenues:

Provincial
 Sources     41143  28.0         28105     18.8       16300   8.8     16249  10.9     7916  14.9
Federal
 Sources    105749  72.0         21736     81.2       70620  81.2    132966  89.1   102271  85.1

Total: Capital
 Revenues   146892   100        149841      100       86920   100    149215   100   120187   100
 
Current and Capital Revenues:

Provincial
 Sources   1977787  55.8       1751429     51.6     1696184  53.7   1693366  53.0  1680683  54.1
Federal
 Sources   1567373  44.2       1642014     48.4     1462262  46.3   1500250  47.0  1427341  45.9
 
Total: Current
 and Capital
 Revenues  3545160 100.0       3393443    100.0     3158446 100.0   3193616 100.0  3108024   100



                                   EXHIBIT IV
                                        
                               EXPENDITURE SUMMARY
                                1995-96 Estimated

                                 Total                       Current                Capital
  Head                     Gross            Net         Gross         Net      Gross       Net
                          ($000)        ($000)        ($000)        ($000)    ($000)     ($000)

Consolidated Fund
 Services                606,262       500,822       605,185       499,746     1,077     1,076
Executive Council         22,672        21,785        22,672        21,785       -         -
Finance                   44,179       (4,971)        44,179        14,816       -     (19,787)
Legislature               11,551        11,338        11,551        11,338       -         -
Public Service
 Commission                3,297         2,918         3,297         2,918       -         -
Works, Services
 and Transportation      254,609       162,554       147,173       116,718   107,436    45,836
Environment                7,259         6,059         7,259         6,059       -         -
Fisheries, Food
 and Agriculture          31,197        27,337        26,098        22,889     5,099     4,448
Industry, Trade
 and Technology           68,852        36,777        50,159        37,466    18,693      (689)
Natural Resources         55,683        47,566        50,338        45,216     5,345     2,350
Tourism, Culture
 and Recreation           35,483        25,220        30,723        25,974     4,760      (754)
Education and Training   763,585       736,232       738,921       712,181    24,664    24,051
Employment and Labour
 Relations                29,763        19,071        29,763        19,071       -         -
Health                   933,083       884,106       909,826       861,509    23,257    22,597
Justice                  114,320       108,776       114,320       108,776       -         -
Municipal and
 Provincial Affairs      185,048       142,749       102,975        96,365    82,073    46,384
Newfoundland and
 Labrador Housing
 Corporation              15,244        13,244        15,244        13,244        -         -
Social Services          361,129       198,173       360,729       197,773       400       400

TOTAL                  3,543,216     2,939,756     3,270,412     2,813,844   272,804   125,912

                                        
                                   EXPENDITURE SUMMARY
                                     1995-96 Revised

                    
Consolidated Fund
 Services                584,847      532,830       584,270       532,254       577        576
Executive Council         23,503       21,825        23,503        21,825        -          -
Finance                   42,901       26,660        42,901        37,648        -     (10,988)
Legislature               11,749       11,514        11,749        11,514        -          -
Public Service
 Commission                2,632        2,451         2,632         2,451        -          -
Works, Services
 and Transportation      256,867      149,722       142,137       101,767   114,730     47,955
Environment                9,928        7,291         9,928         7,291        -          -
Fisheries, Food
 and Agriculture          42,360       30,135        29,983        26,332    12,377      3,803
Industry, Trade
 and Technology           81,640       47,955        41,604        31,144    40,036     16,811
Natural Resources         63,597       56,189        45,932        39,955    17,665     16,234
Tourism, Culture
 and Recreation           38,048       25,222        30,839        25,881     7,209       (659)
Education and Training   773,314      742,661       744,756       720,415    28,558     22,246
Employment and Labour
 Relations                30,220       24,546        30,220        24,546        -          -
Health                   934,747      870,751       909,825       847,519    24,922     23,232
Justice                  112,399      107,199       111,649       106,449       750        750
Municipal and
 Provincial Affairs      164,413      136,505        99,987        95,056    64,426     41,449
Newfoundland and Labrador
 Housing Corporation      18,376       15,107        18,376        15,107       -           -
Social Services          338,205      179,680       338,180       179,665        25         25

TOTAL                  3,529,746    2,988,243     3,218,471     2,826,809   311,275    161,434



                                    EXHIBIT V
                                        
                               PUBLIC SECTOR DEBT
                                  1991 to 1995

                                                     Five Years ending March 31    
                                  1995**         1994*           1993        1992          1991     
                                                          (Millions of dollars)       

Provincial Direct Debt:
 Payable in Canadian Dollars     1,877.6       1,888.3        1,758.3     1,705.9        1,624.9
 Due Government of Canada          796.9         827.2          862.8       860.3          847.8
 Payable in U.S. Dollars         1,792.0       1,729.4        1,441.0     1,358.2        1,573.3
 Payable in Other Currencies     1,156.2         954.5          806.9       737.5          615.9

Total Direct Debenture Debt      5,622.7       5,399.4        4,869.0     4,661.9        4,661.9

Treasury Bills                     390.0         286.0          286.0       286.0          130.0

Total Provincial Direct Debt     6,012.7       5,685.4        5,155.0     4,947.9        4,791.9
 
Crown Corporation and
 Other Debt:
 Utility                         1,357.2       1,335.6        1,386.6     1,365.4        1,221.1
 Housing                           132.9         163.6          170.8       161.1          135.3
 Municipal                         744.1         736.8          697.5       651.1          634.2
 Other                             123.2          99.1           78.3        86.8          110.2

Total Crown Corporation
  and Other Debt                 2,357.4       2,335.1        2,333.2     2,264.4        2,100.8
 
Deduct Sinking Funds held for
Redemption of Debt:
 Provincial Obligations          1,087.7         994.2          884.6     1,029.9        1,242.1
 Guaranteed Debt                   449.9         421.6          426.2       388.0          360.1
 
Total Sinking Funds              1,537.6       1,415.8        1,310.8     1,417.9        1,602.2

Total Public Sector
  Debt (Note 1)                  6,832.5       6,604.7        6,177.4     5,794.4        5,290.5


* Preliminary
** Forecast


Note 1: Debt payable in foreign currencies is shown at the Canadian dollar
 equivalent using the rates of exchange in effect March 31 of each year.



                                   EXHIBIT VI
                                        
                     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


                                   EXHIBIT VII

              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


                                   EXHIBIT VIII

                  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


                                    EXHIBIT IX

                     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


                                    EXHIBIT X

                      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

                                    EXHIBIT XI

                     SUMMARY OF SALARY COSTS BY DEPARTMENT

                         1995-96 and 1994-95 (Revised)


                                                       1995-96        1994-95 
DEPARTMENT                                            Estimates       Revised 
                                                          $              $    

Executive Council                                    12,918,500     12,441,700
Finance                                             10,586,600*      9,495,400
Legislature                                           4,958,100      5,108,500
Public Service Commission                             2,076,400      1,659,300
Works, Services and Transportation                   75,604,400     74,930,900
Environment                                           3,577,300      3,617,400
Fisheries, Food and Agriculture                      11,040,300     11,968,300
Industry, Trade and Technology                        5,975,000      4,795,500
Natural Resources                                    24,662,700     24,327,800
Tourism, Culture and Recreation                      11,881,400     11,779,300
Education and Training                               11,327,800     10,193,200
Employment and Labour Relations                       6,933,400      6,286,000
Health                                               12,369,200     12,191,100
Justice                                              50,623,600     49,772,000
Municipal and Provincial Affairs                     12,553,700     11,964,900
Social Services                                    44,607,300**   45,241,800**

TOTAL                                               301,695,700    295,773,100

Less: Capital Account Salary Expenditure              7,206,500      7,372,000

Total: Current Account Salary Expenditure           294,489,200    288,401,100


* Includes $1,800,000 for the commencement of Pay Equity payments to the General Service group.

** Includes salary expenditures for employment initiatives under Department of Social 
   Services Employment Opportunities Programs ($3,167,000,1995-96
   Estimates; $4,625,800,1994-95 Revised).



                                   EXHIBIT XII

                  ESTIMATED INTEREST AND DEBT RETIREMENT 1995-96


                                           Sinking 
                      Amount    Interest    Fund                Sinking      Debt
Term       Series  Outstanding   Rate       Rate     Interest     Fund    Redemption
                                   %          %         $           $         $

Payable in Canadian Dollars:
           
1975/1996   4V    1,296,000     10 1/2       1 1/2    136,100     19,400
1977/1999   4Z   12,000,000     10           2      1,200,000
1977/1998   5B   50,000,000     10           2      5,000,000
1982/2002   5K   50,000,000     14 3/4       2      7,375,000  1,000,000
1983/2003   5L  125,000,000     12 7/8       2     16,093,800  2,500,000
1984/2004   5N  100,000,000     13 1/2       2     13,500,000  2,000,000
1985/1997   5P   80,000,000     10 1/4       -      8,200,000
1986/2006   5Q  100,000,000     11           2     11,000,000  2,000,000
1986/2001   EC3 100,000,000     10           2     10,000,000  2,000,000
1987/2010   5R  100,000,000     9 3/8        2      9,375,000  2,000,000
1987/2007   EC4  75,000,000     9 1/2        2      7,125,000  1,500,000  50,000,000
1987/2007   5S   42,300,000     10.79        2      4,564,200    846,000
1988/2008   5T  100,000,000     11 1/4       2     11,250,000  2,000,000
1988/1997   J5   75,000,000     10.86        -      8,144,900
1989/2012   5U  125,000,000     11           2     13,750,000  2,500,000
1989/2014   5V  150,000,000     10 1/8       1 1/2 15,187,500  2,250,000
1991/2001   5W   58,794,000     10 1/2       -      6,173,400
1991/2021   5X   91,206,000     10.95        -      9,781,800
1992/1998   EC5 150,000,000     9 1/8        -     13,687,500
1993/2003   EC6 150,000,000     8 3/4        2     13,125,000  3,000,000
1994/2004   5Y  100,000,000     8.55         -      8,550,000
1995/1999   J12  42,000,000     FLOATING     -      3,570,000
Anticipated 1995/1996                              11,000,000                      

                                                  207,789,200 23,615,400  50,000,000


                                   EXHIBIT XII

             ESTIMATED INTEREST AND DEBT RETIREMENT 1995-96 (Cont'd)


                                          Sinking
                      Amount    Interest    Fund                Sinking        Debt
Term       Series  Outstanding   Rate       Rate   Interest      Fund       Redemption
                                   %         %         $           $            $

Payable in United States Dollars:

1986/1996  AE    100,000,000    8 1/2      2       11,645,000  2,740,000
1987/2007  AF    100,000,000   11 5/8      2       15,926,300  2,740,000
1989/2019  AG    150,000,000    9          1 1/2   18,495,000  3,082,500
1990/2020  AH    150,000,000    9 7/8        1/2   20,293,100  1,027,500
1990/2020  AJ    150,000,000   10            1/2   20,550,000  1,027,500
1991/2021  AK    200,000,000    9            1/2   24,660,000  1,370,000
1992/2022  AM    200,000,000    8.65         1/2   23,701,000  1,370,000
1993/2023  AN    200,000,000    7.32         3/4   20,056,800  2,055,000
1994/2001  Jll    23,500,000    FLOATING     -      2,080,600                      

                                                  157,407,800 15,412,500           

Payable in Japanese Yen:

1992/1997  J8 11,000,000,000 6.25            -      9,118,700
1994/1999  J9  4,700,000,000 4.8             -      3,000,500
1994/2001  J10 2,300,000,000 4.95            -      1,514,200                      
 
                                                   13,633,400                      

Payable in Swiss Francs:

1985/2000  S3    150,000,000 5 3/8           -      8,546,300
1987/2002  S4    150,000,000 5 1/8           -      8,148,800
1988/2003  S5    150,000,000 5               2      7,950,000  2,471,200
1990/1999  S6    125,000,000 7 1/2           -      9,937,500
1991/2003  S7    150,000,000 7               2     11,130,000  2,191,700           

                                                   45,712,600  4,662,900           
 
                                                  424,543,000 43,690,800      50,000,000
           
Canada Pension Plan:
(20 Year Term)
           
1975/76    3A     29,429,000 8.21-9.48       2      1,867,700
1976/77    3A     30,988,000 8.73-9.25       2      2,790,000
1977/78    3A     33,037,000 8.77-9.37       2      3,001,000
1978/79    3A     36,622,000 9.35-10.16      2      3,499,500
1979/80    3A     40,070,000 9.98-12.74      2      4,242,100
1980/81    3A     42,645,000 11.61-13.46     2      5,416,800


                                  EXHIBIT XII            

             ESTIMATED INTEREST AND DEBT RETIREMENT 1995-96 (Cont'd)

                                              
                                        Sinking               
                     Amount    Interest  Fund                 Sinking    Debt
Term       Series  Outstanding   Rate    Rate   Interest       Fund    Redemption
                                   %       %       $             $         $
           
Canada Pension Plan (Cont'd):
           
1981/82     3A   52,973,000  13.66-17.51  2      8,173,600
1982/83     3A   52,104,000  12.01-16.53  2      7,645,000
1983/84     3A   50,738,000  10.92-12.14  2      5,882,300
1984/85     3A   47,146,000  12.08-14.06  2      6,303,100    198,400
1985/86     3A   50,570,000  10.58-12.57  2      5,806,900    589,800
1986/87     3A   59,659,000  9.04-10.17   2      5,735,200    734,500
1987/88     3A   43,829,000  9.12-11.07   2      4,280,400    568,300
1988/89     3A   41,635,000  9.62-10.39   2      4,196,400    596,000
1989/90     3A   45,188,000  9.15-10.31   2      4,475,100    727,000
1990/91     3A   40,432,000  9.78-11.33   2      4,385,400    665,000
1991/92     3A   40,858,000  9.81-10.04   2      4,052,800    684,800
1992/93     3A   28,770,000  9.17- 9.45   2      2,695,300    493,900           

                                                84,448,600  5,257,700           

Government of Canada:
            
Winter Capital
 Projects         3,827,200  7.44- 9.40   -        303,400
CMHC Loans       11,762,500  5.75-14.75   -        844,000                139,400
DRIE             14,597,000  5.77- 9.72   -      1,229,700              4,786,300

                                                 2,377,100              4,925,700

TOTAL                                          511,368,700 48,948,500  54,925,700



EXCHANGE RATES USED IN CONVERSION
            
U.S.            1.3700 Cdn.
Yen             0.0133 Cdn.
S.F.            1.0600 Cdn.



                                  EXHIBIT XIII
                          DETAILS OF CAPITAL EXPENDITURES
                                 ESTIMATES 1995-96
    
ACTIVITY   GROSS                          RELATED          NET  
  NO.    DETAILS                      EXPENDITURE        REVENUE    EXPENDITURE
                                           $                $            $     
CONSOLIDATED FUND SERVICES
1.2.01   Various Facilities
          - Rental Purchase                77,200           -          77,200
1.3.02   Issues under Guarantee
          (Statutory)                   1,000,000          1,000      999,000
TOTAL                                   1,077,200          1,000    1,076,200

FINANCE
2.2.02   Recoveries on Loans,
          Advances and Investments              -     19,787,000  (19,787,000)
TOTAL                                           -     19,787,000  (19,787,000)
    
WORKS, SERVICES AND TRANSPORTATION
2.2.06   Salt Storage Sheds               300,000           -         300,000
2.2.07   Alterations
          - Leased Accommodations         325,000           -         325,000
2.3.04   Heavy Equipment                5,500,000        125,000    5,375,000
3.2.01   Administrative Support
          - Road Construction             750,000           -         750,000
3.2.02   Pre-Engineering
          - Road Construction             650,000           -         650,000
3.2.03   Improvement and Construction
          - Provincial Roads           15,000,000           -      15,000,000
3.2.04   Highways - Transportation
          Initiative                   35,000,000     35,000,000         -
3.2.05   Regional Roads 
         - Transportation Initiative   20,000,000     20,000,000         -
3.2.06   Strategic Highway
          Improvement Program           4,000,000      2,000,000    2,000,000
3.2.07   Land Acquisition               5,000,000              -    5,000,000
3.3.01   Alterations to Existing
          Facilities                    9,700,000      2,475,000    7,225,000
3.3.02   Development of New Facilities  5,350,000      1,000,000    4,350,000
3.3.03   Improvements to Land and
          Property                      1,500,000              -    1,500,000
3.3.04   Advanced Planning - Studies    1,500,000              -    1,500,000
4.2.03   Airstrips                      1,000,000      1,000,000         -

4.3.04   Ferry Terminals                  500,000              -      500,000
4.3.05   Ferry Vessels                    907,000              -      907,000
5.2.03   Realty Services                   54,400              -       54,400
5.3.02   Park Development - C.A.
          Pippy Park Commission           400,000              -      400,000
TOTAL                                 107,436,400     61,600,000   45,836,400
    
FISHERIES, FOOD AND AGRICULTURE
2.1.06   Labrador Development Agreement   370,000        259,000      111,000
2.2.02   Fisheries Facilities             500,000              -      500,000
3.1.03   Middle Distance Fishing
          Vessels                       2,161,000              -    2,161,000
5.1.04   Fishing Boat Bounties            368,000              -      368,000
6.1.04   Land Development                 500,000              -      500,000
6.1.05   Green Plan                       400,000              -      400,000
6.4.02   Construction and Alterations
          - Newfoundland Farm Products    200,000              -      200,000
6.7.03   Agri-Foods Initiatives           600,000        392,000      208,000
TOTAL                                   5,099,000        651,000    4,448,000


                                  EXHIBIT XIII
                                        
                      DETAILS OF CAPITAL EXPENDITURES (Cont'd)
                                 ESTIMATES 1995-96
                                        
ACTIVITY                                 GROSS           RELATED        NET    
   NO.   DETAILS                      EXPENDITURE        REVENUE    EXPENDITURE
                                           $                $            $     

INDUSTRY, TRADE AND TECHNOLOGY
3.3.04   Hibernia GBS Site
          Construction - Offshore Fund  4,043,000      3,032,300    1,010,700
3.4.02   Loan Fund - Enterprise
          Corporation Initiatives      14,650,000     16,350,000   (1,700,000)

TOTAL                                  18,693,000     19,382,300     (689,300)
    
NATURAL RESOURCES
3.1.04   Development of Infrastructure
          - Offshore Fund               3,000,000      2,250,000      750,000
4.1.09   Resource Roads Construction    2,100,000        500,000    1,600,000
5.2.02   Cottage Land Development         245,000        245,000         -

TOTAL                                   5,345,000      2,995,000    2,350,000
    
TOURISM, CULTURE AND RECREATION
2.2.06   Labrador Interpretation Centre 1,845,000      1,291,500      553,500
2.3.03   Travel Generators
          - Marble Mountain               300,000        210,000       90,000
3.1.04   Support for Cultural Activities  120,000              -      120,000
3.3.04   Historic Sites Development        40,000         10,000       30,000
4.1.07   Park Planning and Development    500,000      4,000,000   (3,500,000)
4.1.08   National Parks                     5,000          2,500        2,500
4.1.09   Park Rehabilitation            1,000,000              -    1,000,000
5.1.04   Community Sports Facilities      949,500              -      949,500

TOTAL                                   4,759,500      5,514,000     (754,500)
    
EDUCATION AND TRAINING
2.1.10   Building and Equipping Schools 9,160,000              -    9,160,000
2.1.11   Transportation of School
          Children                      1,800,000              -    1,800,000
2.2.06   Bilingual Facilities             350,000        200,000      150,000
3.1.11   Skills Training Projects
          - Offshore Fund                 550,000        412,500      137,500
3.2.02   Furnishings and Equipment
          - Memorial University         2,000,000              -    2,000,000
3.2.03   Sir Wilfred Grenfell College   3,838,700              -    3,838,700
3.2.04   Various Buildings - Memorial
          University                    1,000,000              -    1,000,000
3.3.02   Furnishings and Equipment
          - Provincial Colleges         2,400,000              -    2,400,000
3.3.03   Provincial College Facilities  3,400,000                   3,400,000
4.2.02   Provincial Information and 
          Library Resources Board         165,000              -      165,000
    
TOTAL                                  24,663,700        612,500    24,051,200



                                  EXHIBIT XIII
                                        
                      DETAILS OF CAPITAL EXPENDITURES (Cont'd)
                                 ESTIMATES 1995-96

ACTIVITY                                 GROSS           RELATED          NET    
   NO.   DETAILS                      EXPENDITURE        REVENUE      EXPENDITURE
                                           $                $              $    
HEALTH
4.3.01   Furnishings and Equipment
          - Health Care Facilities      6,000,000              -       6,000,000
4.3.02   Health Care Centres            3,550,000        210,000       3,340,000
4.3.03   Hospital Facilities            7,750,000         50,000       7,700,000
4.3.04   Newfoundland Cancer Treatment
          & Research Foundation                 -        400,000        (400,000)
4.3.05   Long Term Care Facilities      5,957,100              -       5,957,100

TOTAL                                  23,257,100        660,000      22,597,100
    
MUNICIPAL AND PROVINCIAL AFFAIRS
2.3.03   Community Water Services         450,000         30,000         420,000
2.3.04   Waste Management Facilities      543,000         10,000         533,000
2.3.05   Industrial Water Systems         550,400              -         550,400
2.3.06   Water and Sewer Servicing
          - Coastal Labrador            6,361,000      4,104,000       2,257,000
3.2.06   Municipal Councils             1,110,000              -       1,110,000
3.3.02   Road Construction and Paving
          - Debt Principal              9,133,000         50,000       9,083,000
3.3.03   Water and Sewer Systems
          - Debt Principal             22,220,000        120,000      22,100,000
3.3.04   Environmental Improvements       750,000        750,000            -
3.3.05   Canada-Newfoundland
          Infrastructure Program       40,000,000     30,000,000      10,000,000
4.1.03   Disaster Assistance for
          Infrastructure                  356,000        275,000          81,000
4.1.04   Joint Emergency Preparedness
          Projects                        350,000        350,000            -
4.2.03   Firefighting Vehicles and
          Apparatus                       250,000              -         250,000
    
TOTAL                                  82,073,400     35,689,000      46,384,400
    
SOCIAL SERVICES
3.2.03   Youth Correction Facilities      400,000              -         400,000

TOTAL                                     400,000              -         400,000
    
TOTAL: CAPITAL ACCOUNT EXPENDITURES   272,804,300    146,891,800     125,912,500