Province Ends 201011 with Surplus Reduced Net Debt

first_imgPremier Darrell Dexter announced today, April 4, that Nova Scotia ended the 2010-11 fiscal year with a $447-million surplus, allowing the province to reduce its net debt for only the seventh time since 1951. The premier made the announcement in a speech to the House of Assembly. “Nova Scotia’s better-than-expected performance through the economic recession and deliberate efforts to control government spending resulted in a larger-than-expected surplus,” said Premier Dexter. “Rather than spend this surplus at year-end, which has been the practice of past governments, we took the view “a penny saved is a penny saved” and used the funds to reduce the provincial debt.” The difference between the estimated 2010–11 deficit ($222.1 million) and the forecasted surplus was: — $133.5 million in reduced departmental spending — $80 million in reduced debt servicing costs — $39.4 million in other savings — $220.3 million in better than estimated provincial revenue — $196.1 million in prior-year revenue adjustments With the year-end surplus, the province eliminated the need to borrow money to pay for infrastructure and reduced the provincial net debt to $13 billion as of March 31. That is $1 billion less debt than forecast. Premier Dexter also noted that this year’s surplus does not change the province’s financial challenges. “In this year’s budget, the province is forecasting a deficit, almost exactly as laid out in the multi-year Back to Balance plan,” said Premier Dexter. “The expected deficit is due largely to the return of clear, accountable annual operating grants for universities.”last_img read more