Expenditures in the two large Acute Care Hospitals and the Provincial Drug Program account for the majority of the overexpenditure of $ 4.7 million in Health and Social Services. The department has presented a plan to Treasury Board to contain expenditure growth for the remainder of the fiscal year. A further analysis can be seen below.

The Minister noted that indicators from other Departments suggest they are on their budget track. Given the numbers are based only on three months into the fiscal year and a lot of Provincial source revenues are based on summer results and activity, the more exact picture will be available in mid-October after the Second Quarter Fiscal Update.

The progress of the program review is ongoing, and the Province will be in a better position after the Second Quarter Fiscal Update to provide more details. The Province remains committed to saving $ 9.5 million as outlined in the budget.

In closing, the Minister reaffirmed his ongoing commitment to the Government’s financial objectives while maintaining the delivery of essential services.

PROVINCE OF PRINCE EDWARD ISLAND

CONSOLIDATED FINANCIAL UPDATE

31-Mar-05

Deficit reported to the Legislature for March 31, 2005 ... (33,076,600)

First Quarter Forecast Negative Variance ... (4,827,900)

Revised Deficit at First Quarter Forecast ... (37,904,500)

EXPLANATION OF NEGATIVE VARIANCES:

Health and Social Services:

Large Acute Care Hospitals

(Prince County Hospital/Queen Elizabeth Hospital) ... 3,748,000

Provincial Drug Program ... 550,000

Other (Departmental and Regional Boards) ... 456,000

Sub-Total ... 4,754,000

Other Departmental Expenditures Net of Revenue Offset ... 73,900

Total Negative First Quarter Variance ... 4,827,900