Provincial Treasurer Clarifies Deficit Facts

Provincial Treasurer Pat Mella says that Robert Morrissey is over exaggerating the budgetary concerns in health.

"Increasing health care costs are a concern throughout the country and all Finance Ministers share this concern," says Minister Mella. "At our last meeting of Finance Ministers, we passed a resolution asking Mr. Martin to recognize the increasing demands for health care and to reinstate the cuts the federal government has made."

The Minister confirms the government is vigilant in its continued monitoring of the budget. "We are continually reviewing our revenues and expenses; and where there are areas of concern, we believe it is good business practice to commit additional financial resources to these areas. Our purpose in doing this is to examine the cost drivers and evaluate whether changes need to be made, keeping in mind our government's stated priorities."

The Provincial Treasurer notes the projected deficit for the fiscal year is $3.4 million. "I remain confident that we will achieve our financial objectives, while maintaining our commitments in health care and education."

Minister Mella also notes that she recently met with the Bond Rating Agencies and expressed the same message of confidence to them that the province is on target within its financial objectives.