Hon. Mitch Murphy, Provincial Treasurer, today released the audited financial statements for the 2005-2006 year, showing the province is closing the books with a surplus of $678,000.
Minister Murphy said that PEI originally forecasted for a $22 Million deficit, but a fast growing economy and fiscal discipline have resulted in a surplus. The final numbers have been audited by the Auditor General of PEI. The surplus will be used to reduce the province’s long-term debt.
The largest growth came through revenues from personal income taxes, which were $14 Million higher than forecast. This reflects the province’s record job growth and continued diversity from a seasonal-based economy to a year-round economy. The province has experienced the largest job growth in our history and announcements of new companies like AIM Trimark and Ceridian in Charlottetown, CGI in Stratford, and Atlantic Prepared Foods and Testori Americas in Bloomfield, and expansions of Cabinetmaster in Montague, East Isle Shipyard in Georgetown, Master Packaging and MacDougall Steel Erectors in Borden illustrate this successful approach.
“The results are pleasing in that they indicate our economy continues to perform strongly and we exercise the fiscal discipline which Islanders expect and deserve,” said Minister Murphy. “Our province has faced and continues to face economic pressures. Under the leadership of our Premier, this province has been on an aggressive course to combine fiscal discipline with economic growth. We have been successful and we will continue on that course for a strong future for Islanders.”
While the surplus is welcome news, Minister Murphy said government must continue to focus on the future, in particular, continued improvement of provincial finances as well increased income and job opportunities for Islanders.
“There is a renewed confidence and self-reliance of Islanders which gives us optimism for the future. Government remains focused on enhancing the health and well being of Islanders, improving learning and skills development for Islanders and promoting economic prosperity that respects a sustainable environment,” said Minister Murphy. “Each Department is now developing three-year business plans around these goals, which were outlined in the Speech from the Throne. This will help us to exercise the necessary fiscal discipline and deliver on the focused goals of government.”