PUBLIC ACCOUNTS CONFIRM BALANCED BUDGET

Saskatchewan recorded its eighth consecutive balanced budget in 2001-02

with a surplus of $1.1 million in the General Revenue Fund (GRF).



The figures are contained in Volume 1 of the 2001-02 Public Accounts,

released today by Finance Minister Eric Cline.



Volume 1 also confirms that in spite of challenging economic conditions the

government honoured its commitment to lower taxes while increasing

resources for key public services such as health, education, agriculture

and highways.



"The Public Accounts close the books on a very difficult year for the

Saskatchewan economy," Cline said. "The combination of drought, falling

commodity prices and the global economic downturn meant provincial revenues

tapered off from the dramatic growth shown in 2000-01. Lower revenue from

oil and natural gas was offset in part by higher federal transfers.

Corporation Income Tax revenue was also less, due in part to the economic

slowdown but also to the backlog in processing on the part of the federal

government and the reduction in rates for small business."



Tax cuts were delivered as promised. On a per capita basis Saskatchewan's

operating expenditures were the fourth lowest among the 10 provinces in

2001-02. Saskatchewan's total debt to GDP ratio was 34 per cent at the end

of the 2001-02 fiscal year, down from 69 per cent in 1993. Debt servicing

costs were down nearly $48 million from the previous year.



Cline noted Saskatchewan was rewarded for its sound financial management

with a tenth consecutive credit rating upgrade following the 2002-03

Budget. "Independent analysts continue to confirm that Saskatchewan is on

the right track."



Cline said the eighth consecutive balanced budget underlines the importance

of having a 'rainy-day fund' in the form of the Fiscal Stabilization

Fund. "The year-end financial results for 2001-02 highlight an improvement

in revenues over what was forecast in the 2002-03 provincial budget.

Combined with careful spending, this meant that $131 million less was

required than forecast from the Fiscal Stabilization Fund to balance the

budget for 2001-02. This leaves us better positioned to meet the challenges

for the 2002-03 fiscal year and beyond."





The Summary Financial Statements recorded a $483 million deficit in 2001-

02. This was due mainly to the General Revenue Fund shortfall that was

covered by drawing down the Fiscal Stabilization Fund. The negative impact

of the drought on the Crop Insurance Fund and an increase in the pension

liability also contributed to the deficit.



More information on the 2001-02 Public Accounts can be found at

www.gov.sk.ca/finance.



-30-



For more information, contact:



Roy Schneider

Saskatchewan Finance

Regina

Phone: (306) 787-8109