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November 29, 2012
For immediate release
Fiscal Update indicates despite pressures, Province still making progress on budget targets
Finance and Energy
Despite facing some very real pressures, Government is moving steadily toward this year’s budget targets, says Finance, Energy and Municipal Affairs Minister Wes Sheridan.
“Any budgetary plan has to have some flexibility to deal with unforeseen events,” said Minister Sheridan. “While we faced some additional challenges, we were able to realize some savings in other areas. The result is that we are not far from our target for this year, and are on the path to balance by 2015.”
The 2013 deficit is now expected to come in at $79.6 million, an increase over the budgeted deficit of $74.9 million. The primary reason for the increase is expected crop insurance losses following last summer’s dry spell. In addition, tobacco tax revenues are coming in $2.5 million lower than expected.
Health care and social services expenditures continue to be a pressure, specifically the added costs for in-province physicians, out-of-province hospitals and the disability support program.
On the positive side, departments are closely monitoring all expenditures and reducing costs where possible, so total expenditures are tracking below budget.
The Fiscal Update 2012/2013 is available online at www.gov.pe.ca/photos/original/FisUpdate_Q2_12.pdf.