NB 1227
Sept. 28, 2007
FREDERICTON (CNB) - The New Brunswick government today released audited financial statements for the 2006-2007 fiscal year that show a surplus of $236.8 million, and a decrease in net debt of $136.3 million.
The $236.8 million surplus compares favourably to the 2006-2007 budgeted surplus of $22.2 million.
"Our government was able to report a surplus due in large part to significant revenue improvements during the year, including Metallic Minerals Tax up $112.2 million due to significant increases in world zinc prices, income taxes up $109.6 million reflecting underpayments from the federal government for prior years, and investment income up $76.3 million, largely due to an improvement in net income of NBEFC related to a strong performance by NB Power," Finance Minister Victor Boudreau said. "Much of this revenue improvement was only confirmed late in the fiscal year."
Boudreau said it is not uncommon for the government to have changes in revenues during the year, particularly for a province like New Brunswick, where much of our revenue is based on federal estimates, and the net income of other entities like NB Power.
The Auditor General has given a clean audit opinion on the province's 2006-2007 financial statements, which means that these results are prepared as required by the Canadian generally accepted accounting principles.
"While we are encouraged by these results, we must remember that there are always risks beyond the government's control, like the global economy and/or positive and negative adjustments from the federal government, that could affect our financial performance," the minister said. "These are important issues that we must take into consideration as we continue along the path to attaining self-sufficiency."
Boudreau said that the government is on track with its 2007-2008 budget projection of a modest surplus and will table a detailed fiscal update later this fall.
"What is now important for the government is to focus on the future and to ensure that revenues and spending are in balance," he said. "We want to provide New Brunswickers with the services they deserve and expect, in an affordable manner."
The results of the audited financial statements for the 2006-2007 fiscal year also demonstrate that the government met the requirements of the Fiscal Responsibility and Balanced Budget Act. This act calls for a balanced budget over the 2004-2005 to 2006-2007 fiscal period, and a reduction in the net debt-to-gross domestic product (GDP) ratio from the previous fiscal period.
Over this designated fiscal period, the province reported a cumulative surplus of $597.8 million. The provincial net debt-to-GDP ratio has improved from 31.2 per cent on March 31 2004 to 26.1 per cent on March 31 2007, reflecting an improvement of 5.1 percentage points.
The audited financial statements for 2006-2007 are available online.
07/09/28
MEDIA CONTACT: Vicky Deschênes, communications, Finance, 506-453-2451.
07/09/28
