Government Annual Report confirms year of record results

EDMONTON, June 28, 2001 - The province's fiscal and performance results have been released, confirming 2000-01 was a year of outstanding revenues. In 2000-01, high energy prices increased government revenue to a record of $25.6 billion--$6.5 billion higher than originally forecast.

The Fiscal Responsibility Act requires the government apply 75 per cent of excess revenues to reduce debt and increase the financial assets of the province. In 2000-01, the province exceeded that requirement by applying nearly 80 per cent. Alberta's debt will be reduced to $6.6 billion, which is an improvement of about $300 million from the Third Quarter Fiscal Update. Alberta is nine years ahead of the legislated debt repayment schedule and has the best credit rating in the country.

"This past year was an outstanding fiscal year for Alberta," said Finance Minister Patricia Nelson, "and through sound fiscal planning we were in a position to return the benefits to Albertans by paying down the debt, cutting taxes, increasing spending in key areas and providing relief from high energy prices."

In 2000-01, prior to in-year initiatives, revenues exceeded expenses by $8.1 billion. After in-year initiatives of $1.7 billion—which included energy cost assistance, farm income assistance, accelerated infrastructure programs and further assistance for health and children's services—Alberta's year-end economic cushion was $6.4 billion. The economic cushion was used for the following:

• $5.4 billion allocated to pay down the debt (this is in addition to $470 million available from 1999-2000)
• $500 million for the budgeted Alberta Heritage Science and Engineering Research Endowment Fund
• $500 million for other balance sheet requirements.
  

Other Annual Report highlights:

• Resource revenues were $10.6 billion
• Health spending increased by 11.6 per cent to $5.9 billion. More than $16 million was spent every day on health care in Alberta
• Education spending increased by 6.1 per cent over the previous year to $5 billion
• 2001 personal income taxes were cut by $1.1 billion
• 2001 education property taxes were cut by $135 million and frozen for future years
• Approximately $1.2 billion was provided to Albertans for energy cost assistance
• $700 million in assistance to farmers and ranchers and a 30 per cent reduction in crop insurance premiums were implemented.

"While Budget 2000 was successful in establishing a fiscal framework for the new century and made huge gains towards debt elimination, we know we can't rely on record resource revenues every year. Our government must remain committed to being prudent in our spending on behalf of Albertans," Nelson added.

As part of the Government Annual Report, results from the provincial government's Measuring Up report were released. Measuring Up tracks progress on each of the government's goals relating to people, prosperity and preservation.

• For highlights of the Government of Alberta Annual Report 2000-01, click here.
• For the full Government of Alberta Annual Report 2000-01, click here.

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