PROVINCE OF MANITOBA
NOTES TO THE PRELIMINARY UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2004
This report presents the unaudited financial results of the Province of Manitoba for the year ended March 31, 2004. The amounts reported represent the most current data available and it is expected that they will remain largely unchanged when final audited financial statements are issued for the year.
The comparative data provided for the 2002/03 fiscal year has been restated to reflect the organizational structure of departments established in the 2003/04 Estimates as well as the in-year reorganization of departments announced on November 4, 2003.
2003/04 YEAR-END RESULTS
A positive balance of $5.7 million is expected for the 2003/04 fiscal year, an improvement of $0.9 million from the third quarter forecast. Budget 2003 projected a $10.0 million positive balance.
As noted in previous reports, unforeseen natural disasters in 2003/04 negatively affected the province’s finances. Revenues were impacted by drought conditions while expenditures rose as a result of the BSE crisis and one of the worst forest fire seasons on record. As a result, and as provided for under Section 3(2) of The Balanced Budget, Debt Repayment and Taxpayer Accountability Act, $71.1 million in disaster-related expenditures will be excluded in determining the balance for the 2003/04 fiscal year.
While revenue and expenditure preliminary results represent a combined improvement of $20.7 million from the third quarter, they are moderately less than budget projections, excluding the above-noted disaster impacts which has resulted in a requirement to draw $126.7 million from the Fiscal Stabilization Fund.
Comparison to Budget
Revenue of $7,305.6 million is a $8.3 million decrease from budget and an improvement of $14.4 million from the third quarter. As previously reported, revenues dependent on water flows are down from budget due to dry or drought conditions that existed during 2003/04 (Water Power Rentals - $28.6 million decrease; Manitoba Hydro - $52.0 million decrease). In addition, Manitoba Lotteries Corporation revenue is $24.1 million lower than budget, primarily due to the impact of Winnipeg’s ban on smoking in public places.
These revenue decreases were mainly offset by a $62.5 million increase in own source taxation revenue and $29.1 million from various other departmental revenue sources. The increase in taxation revenue included $18.9 in Corporation Income Tax, $17.4 million in Individual Income Tax and $11.6 million in Insurance Corporations Tax. In addition, Equalization revenue was $25.9 million higher than budget, however this increase was mostly offset by decreases in other sources of revenue from the Government of Canada, resulting in an overall increase of $4.7 million from budget.
Total expenditures increased $145.2 million, or 2.0%, from the 2003 Budget levels. This represents a decrease of $6.3 million from the third quarter projection, primarily due to on-going efforts to manage discretionary expenditures.
The increase includes unbudgeted expenditures of $71.1 million for disaster related programming implemented by the Province including programming to address the devastating effects of the BSE crisis and to fund the exceptional costs incurred in fighting forest fires during 2003/04. The balance of the increase in projected expenditures includes $30.2 million in Health, $8.9 million in election costs and $10.5 million in Agriculture Risk Management and Income Support Programs. Public debt servicing costs are projected to be $19.8 million, or 6.0%, lower than budgeted.
Comparison to Previous Year
The net increase in revenue is a combination of increases and decreases including a $128.6 million increase in Corporation Income Tax reflecting an improvement in national corporate income, a one-time increase of $163.9 million for the Canada Health and Social Transfer Supplement, an increase in Equalization receipts of $76.2 million, and a $57.4 million increase in Retail Sales Tax. These increases were offset by the previously noted decrease in revenues dependent on water flows and non-recurring payments from Manitoba Hydro of $150.0 million related to 2001/02 and $53.5 million related to 2002/03 export profits. In total, revenues increased by $284.3 million from the 2002/03 actual level.
Program expenditures increased primarily in the departments of Health ($218.5 million), Emergency Expenditures ($61.6 million), Education, Citizenship and Youth ($53.8 million), Family Services and Housing ($52.1 million), Advanced Education and Training ($27.1 million) and Justice ($18.6 million). These increases were primarily reflected in budgeted increases in program expenditures. In total, expenditures increased by $457.6 or 6.6% from the 2002/03 actual level including a $10.3 million, or 3.2%, decline in debt servicing costs.
PART B – CAPITAL INVESTMENT
The preliminary results for Part B – Capital Investment expenditures total $42.5 million, a decrease of $15.5 million from budget. The under-expenditure results primarily from slowdowns in various technology and building projects.
DEBT/PENSION REPAYMENT
The 2003 Budget provided for a $96.4 million contribution to the Debt Retirement Fund. As required by the balanced budget legislation, an allocation committee determines the share of those funds directed to the pension assets fund for retirement of pension obligations or general purpose debt retirement. For 2003/04, the committee allocated $75.0 million for retirement of pension obligations, leaving $21.4 million for the retirement of general purpose debt. The status of the Debt Retirement Fund and the Pension Assets Fund are outlined on page 11 and 12 respectively.
FISCAL STABILIZATION FUND
As of March 31, 2004, the Fund has a balance of $118.0 million, after the projected transfer to the operating fund of $126.7 million as well as the transfer of the projected 2003/04 operating fund surplus of $5.7 million to the Stabilization Fund. The status of the Fund is provided on page 13.
BORROWING ACTIVITY
The original estimate of borrowing requirements identified in the 2003 Budget was $2,032.6 million including refinancing, funding for Manitoba Hydro and Health’s capital programs and new self sustaining requirements. As a result of drought conditions an additional $300 million was required for Hydro and an additional $71 million was required for BSE and forest fire disasters. In addition, $429 million was required to accommodate debt called prior to maturity.
The actual borrowing included $1,396.9 million for refinancing maturing debt issues with the balance for self-sustaining programs, including Manitoba Hydro, and to fund an allocation to the Provincial Sinking Fund for the repurchase of foreign debt. For the period April 1, 2003 to March 31, 2004, $315.6 million was raised through the issue of Builder Bonds and $2,517.4 million was raised in the public market.
PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF REVENUE AND EXPENDITURE
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2002/03 | 2003/04 | INCREASE | 2003/04 | |||||||||||||||||||||
| ACTUAL | ACTUAL (1) | (DECREASE) | ACTUAL (1) | ESTIMATE (2) | VARIANCE | |||||||||||||||||||
| (thousands of dollars) | (thousands of dollars) | |||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
| 4,740,463 | 4,792,903 | 52,440 | Own Source Revenue | 4,792,903 | 4,805,932 | (13,029 | ) | |||||||||||||||||
| 2,229,723 | 2,512,686 | 282,963 | Government of Canada | 2,512,686 | 2,507,950 | 4,736 | ||||||||||||||||||
| 51,141 | — | (51,141 | ) | Extraordinary Revenue | — | — | — | |||||||||||||||||
| 7,021,327 | 7,305,589 | 284,262 | Total Revenue | 7,305,589 | 7,313,882 | (8,293 | ) | |||||||||||||||||
Expenditure | ||||||||||||||||||||||||
| 6,622,293 | 7,090,153 | 467,860 | Program Expenditure | 7,090,153 | 6,925,127 | 165,026 | ||||||||||||||||||
| 321,420 | 311,166 | (10,254 | ) | Debt Servicing | 311,166 | 331,000 | (19,834 | ) | ||||||||||||||||
| 6,943,713 | 7,401,319 | 457,606 | Total Expenditure | 7,401,319 | 7,256,127 | 145,192 | ||||||||||||||||||
| 77,614 | (95,730 | ) | (173,344 | ) | Net Revenue/(Expenditure) | (95,730 | ) | 57,755 | (153,485 | ) | ||||||||||||||
Interfund Transfers | ||||||||||||||||||||||||
| (96,357 | ) | (96,357 | ) | — | Debt/Pension Repayment | (96,357 | ) | (96,357 | ) | — | ||||||||||||||
| 22,262 | 126,700 | 104,438 | Fiscal Stabilization Fund | 126,700 | 48,600 | 78,100 | ||||||||||||||||||
| (74,095 | ) | 30,343 | 104,438 | Total Interfund Transfers | 30,343 | (47,757 | ) | 78,100 | ||||||||||||||||
| 3,519 | (65,387 | ) | (68,906 | ) | Net Result for Year | (65,387 | ) | 9,998 | (75,385 | ) | ||||||||||||||
| — | 71,070 | 71,070 | Adjustment for Disaster Related Expenditures | 71,070 | — | 71,070 | ||||||||||||||||||
| 3,519 | 5,683 | 2,164 | Excess of Revenue over Expenditure for Balanced Budget Legislation | 5,683 | 9,998 | (4,315 | ) | |||||||||||||||||
| (3,519 | ) | (5,683 | ) | (2,164 | ) | Less: Net Revenue to be Transferred to Fiscal Stabilization Fund | (5,683 | ) | (9,998 | ) | 4,315 | |||||||||||||
| — | — | — | Net Result after Transfer | — | — | — | ||||||||||||||||||
Notes:
(1) Preliminary Unaudited Actuals
(2) as per 2003 Budget
PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF REVENUE
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2002/03 | 2003/04 | INCREASE | 2003/04 | |||||||||||||||||||||
| ACTUAL | ACTUAL (1) | (DECREASE) | ACTUAL (1) | ESTIMATE (2) | VARIANCE | |||||||||||||||||||
| (thousands of dollars) | (thousands of dollars) | |||||||||||||||||||||||
Taxation: | ||||||||||||||||||||||||
| Finance | ||||||||||||||||||||||||
| 1,636,187 | 1,720,369 | 84,182 | - Individual Income Tax | 1,720,369 | 1,703,000 | 17,369 | ||||||||||||||||||
| 160,513 | 289,105 | 128,592 | - Corporation Income Tax | 289,105 | 270,200 | 18,905 | ||||||||||||||||||
| 139,340 | 139,049 | (291 | ) | - Corporation Capital Tax | 139,049 | 148,300 | (9,251 | ) | ||||||||||||||||
| 161,059 | 161,856 | 797 | - Gasoline Tax | 161,856 | 161,900 | (44 | ) | |||||||||||||||||
| 48,501 | 56,564 | 8,063 | - Insurance Corporations Tax | 56,564 | 44,974 | 11,590 | ||||||||||||||||||
| 15,370 | 18,304 | 2,934 | - Land Transfer Tax | 18,304 | 14,100 | 4,204 | ||||||||||||||||||
| 257,282 | 267,817 | 10,535 | - Levy for Health and Education | 267,817 | 263,400 | 4,417 | ||||||||||||||||||
| 17,541 | 21,895 | 4,354 | - Mining Tax | 21,895 | 17,000 | 4,895 | ||||||||||||||||||
| 70,132 | 71,308 | 1,176 | - Motive Fuel Tax | 71,308 | 69,400 | 1,908 | ||||||||||||||||||
| 1,006,584 | 1,064,007 | 57,423 | - Retail Sales Tax | 1,064,007 | 1,057,800 | 6,207 | ||||||||||||||||||
| 71,072 | 71,193 | 121 | - Revenue Act, 1964, Part 1 | 71,193 | 69,000 | 2,193 | ||||||||||||||||||
| 180,508 | 190,289 | 9,781 | - Tobacco Tax | 190,289 | 190,400 | (111 | ) | |||||||||||||||||
| 3,213 | 3,251 | 38 | - Environmental Protection Tax | 3,251 | 3,000 | 251 | ||||||||||||||||||
| 213 | 79 | (134 | ) | - Other | 79 | 72 | 7 | |||||||||||||||||
| 3,767,515 | 4,075,086 | 307,571 | 4,075,086 | 4,012,546 | 62,540 | |||||||||||||||||||
| Industry, Economic Development & Mines | ||||||||||||||||||||||||
| 2,711 | 2,786 | 75 | - Oil and Natural Gas Tax | 2,786 | 2,852 | (66 | ) | |||||||||||||||||
| 3,770,226 | 4,077,872 | 307,646 | 4,077,872 | 4,015,398 | 62,474 | |||||||||||||||||||
Other Revenue: | ||||||||||||||||||||||||
| 19,191 | 25,987 | 6,796 | Justice | 25,987 | 22,533 | 3,454 | ||||||||||||||||||
| 84,154 | 93,442 | 9,288 | Transportation & Government Services | 93,442 | 94,030 | (588 | ) | |||||||||||||||||
| 96,547 | 65,208 | (31,339 | ) | Water Stewardship - Water Power Rentals | 65,208 | 93,784 | (28,576 | ) | ||||||||||||||||
| 265,484 | 235,419 | (30,065 | ) | Manitoba Lotteries Corporation | 235,419 | 259,500 | (24,081 | ) | ||||||||||||||||
| 166,347 | 176,251 | 9,904 | Manitoba Liquor Control Commission | 176,251 | 173,300 | 2,951 | ||||||||||||||||||
| 203,468 | — | (203,468 | ) | Manitoba Hydro | — | 52,000 | (52,000 | ) | ||||||||||||||||
| 135,046 | 118,724 | (16,322 | ) | Other Departments | 118,724 | 95,387 | 23,337 | |||||||||||||||||
| 970,237 | 715,031 | (255,206 | ) | 715,031 | 790,534 | (75,503 | ) | |||||||||||||||||
| 4,740,463 | 4,792,903 | 52,440 | Total Own Source Revenue | 4,792,903 | 4,805,932 | (13,029 | ) | |||||||||||||||||
PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF REVENUE
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2002/03 | 2003/04 | INCREASE | 2003/04 | |||||||||||||||||||||
| ACTUAL | ACTUAL (1) | (DECREASE) | ACTUAL (1) | ESTIMATE (2) | VARIANCE | |||||||||||||||||||
| (thousands of dollars) | (thousands of dollars) | |||||||||||||||||||||||
Government of Canada: | ||||||||||||||||||||||||
| 1,337,625 | 1,413,790 | 76,165 | Equalization | 1,413,790 | 1,387,900 | 25,890 | ||||||||||||||||||
| 755,985 | 753,587 | (2,398 | ) | Canada Health and Social Transfer (CHST) | 753,587 | 763,500 | (9,913 | ) | ||||||||||||||||
| — | 163,883 | 163,883 | CHST Supplement | 163,883 | 163,600 | 283 | ||||||||||||||||||
| 1,047 | 7,096 | 6,049 | Primary Health Care Transition Fund | 7,096 | 8,500 | (1,404 | ) | |||||||||||||||||
| 16,457 | 12,702 | (3,755 | ) | Medical Equipment Fund | 12,702 | 17,900 | (5,198 | ) | ||||||||||||||||
| — | 7,829 | 7,829 | Diagnostic Medical Equipment Fund | 7,829 | 6,000 | 1,829 | ||||||||||||||||||
| — | 36,765 | 36,765 | Health Reform Fund | 36,765 | 36,400 | 365 | ||||||||||||||||||
| Departments | ||||||||||||||||||||||||
| 68,777 | 68,592 | (185 | ) | - Advanced Education and Training | 68,592 | 72,057 | (3,465 | ) | ||||||||||||||||
| 12,046 | 12,112 | 66 | - Justice | 12,112 | 11,764 | 348 | ||||||||||||||||||
| 13,536 | 13,376 | (160 | ) | - Transportation and Government Services | 13,376 | 15,270 | (1,894 | ) | ||||||||||||||||
| 24,250 | 22,954 | (1,296 | ) | - Other Departments | 22,954 | 25,059 | (2,105 | ) | ||||||||||||||||
| 2,229,723 | 2,512,686 | 282,963 | Total Government of Canada | 2,512,686 | 2,507,950 | 4,736 | ||||||||||||||||||
| 51,141 | — | (51,141 | ) | Extraordinary Revenue | — | — | — | |||||||||||||||||
| 7,021,327 | 7,305,589 | 284,262 | Total Revenue | 7,305,589 | 7,313,882 | (8,293 | ) | |||||||||||||||||
Notes:
(1) Preliminary Unaudited Actuals
(2) as per 2003 Budget
PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF PART A – OPERATING EXPENDITURE
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2002/03 | 2003/04 | INCREASE | 2003/04 | |||||||||||||||||||||
| ACTUAL (1) | ACTUAL (2) | (DECREASE) | ACTUAL (2) | ESTIMATE (3) | VARIANCE | |||||||||||||||||||
| (thousands of dollars) | (thousands of dollars) | |||||||||||||||||||||||
| 23,058 | 31,849 | 8,791 | Legislative Assembly | 31,849 | 23,361 | 8,488 | ||||||||||||||||||
| 2,955 | 3,105 | 150 | Executive Council | 3,105 | 3,109 | (4 | ) | |||||||||||||||||
| 30,211 | 28,766 | (1,445 | ) | Aboriginal and Northern Affairs | 28,766 | 29,163 | (397 | ) | ||||||||||||||||
| 495,203 | 522,314 | 27,111 | Advanced Education and Training | 522,314 | 528,165 | (5,851 | ) | |||||||||||||||||
| 138,436 | 153,332 | 14,896 | Agriculture, Food and Rural Initiatives | 153,332 | 144,804 | 8,528 | ||||||||||||||||||
| 4,201 | 4,301 | 100 | Civil Service Commission | 4,301 | 4,624 | (323 | ) | |||||||||||||||||
| 97,166 | 99,927 | 2,761 | Conservation | 99,927 | 102,134 | (2,207 | ) | |||||||||||||||||
| 64,105 | 66,541 | 2,436 | Culture, Heritage and Tourism | 66,541 | 67,590 | (1,049 | ) | |||||||||||||||||
| 1,017,808 | 1,071,628 | 53,820 | Education, Citizenship and Youth | 1,071,628 | 1,066,819 | 4,809 | ||||||||||||||||||
| 63,597 | 66,870 | 3,273 | Employee Pensions and Other Costs | 66,870 | 67,052 | (182 | ) | |||||||||||||||||
| 40,764 | 42,680 | 1,916 | Energy, Science and Technology | 42,680 | 45,011 | (2,331 | ) | |||||||||||||||||
| 817,474 | 869,573 | 52,099 | Family Services and Housing | 869,573 | 872,759 | (3,186 | ) | |||||||||||||||||
| 99,989 | 97,660 | (2,329 | ) | Finance - Departmental Costs | 97,660 | 99,572 | (1,912 | ) | ||||||||||||||||
| 321,420 | 311,166 | (10,254 | ) | Finance - Debt Servicing Costs | 311,166 | 331,000 | (19,834 | ) | ||||||||||||||||
| 2,848,668 | 3,067,155 | 218,487 | Health | 3,067,155 | 3,036,989 | 30,166 | ||||||||||||||||||
| 19,888 | 20,941 | 1,053 | Healthy Child Manitoba | 20,941 | 21,938 | (997 | ) | |||||||||||||||||
| 30,794 | 30,537 | (257 | ) | Industry, Economic Development and Mines | 30,537 | 30,413 | 124 | |||||||||||||||||
| 114,540 | 115,484 | 944 | Intergovernmental Affairs and Trade | 115,484 | 119,931 | (4,447 | ) | |||||||||||||||||
| 244,583 | 263,135 | 18,552 | Justice | 263,135 | 260,219 | 2,916 | ||||||||||||||||||
| 26,166 | 28,156 | 1,990 | Labour and Immigration | 28,156 | 27,857 | 299 | ||||||||||||||||||
| 689 | 725 | 36 | Seniors Directorate | 725 | 730 | (5 | ) | |||||||||||||||||
| 10,655 | 10,685 | 30 | Sport | 10,685 | 10,686 | (1 | ) | |||||||||||||||||
| 1,077 | 1,030 | (47 | ) | Status of Women | 1,030 | 1,086 | (56 | ) | ||||||||||||||||
| 318,218 | 335,220 | 17,002 | Transportation and Government Services | 335,220 | 340,958 | (5,738 | ) | |||||||||||||||||
| 58,341 | 43,393 | (14,948 | ) | Water Stewardship | 43,393 | 45,415 | (2,022 | ) | ||||||||||||||||
| 2,956 | 2,944 | (12 | ) | Enabling Appropriations | 2,944 | 11,279 | (8,335 | ) | ||||||||||||||||
| 16,319 | 16,132 | (187 | ) | Other Appropriations | 16,132 | 23,463 | (7,331 | ) | ||||||||||||||||
| 34,432 | 96,070 | 61,638 | Other Appropriations - Emergency | 96,070 | 25,000 | 71,070 | ||||||||||||||||||
| — | — | — | Year-End Savings | — | (85,000 | ) | 85,000 | |||||||||||||||||
| 6,943,713 | 7,401,319 | 457,606 | Total Expenditure | 7,401,319 | 7,256,127 | 145,192 | ||||||||||||||||||
Notes:
(1) Restated to reflect the 2003 Budget and the November 2003 reorganization of departments
(2) Preliminary Unaudited Expenditure
(3) Reflects 2003 Budget including the November 2003 reorganization of departments
PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF PART B – CAPITAL INVESTMENT
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2002/03 | 2003/04 | INCREASE | 2003/04 | |||||||||||||||||||||
| ACTUAL (1) | ACTUAL (2) | (DECREASE) | ACTUAL (2) | ESTIMATE (3) | VARIANCE | |||||||||||||||||||
| (thousands of dollars) | (thousands of dollars) | |||||||||||||||||||||||
| — | 81 | 81 | Legislative Assembly | 81 | �� | 85 | (4 | ) | ||||||||||||||||
| 148 | 144 | (4 | ) | Agriculture, Food and Rural Initiatives | 144 | 150 | (6 | ) | ||||||||||||||||
| 636 | 520 | (116 | ) | Conservation | 520 | 700 | (180 | ) | ||||||||||||||||
| 268 | 5,936 | 5,668 | Energy, Science and Technology | 5,936 | 5,700 | 236 | ||||||||||||||||||
| 2,224 | 2,734 | 510 | Family Services and Housing | 2,734 | 2,747 | (13 | ) | |||||||||||||||||
| 382 | 390 | 8 | Finance | 390 | 480 | (90 | ) | |||||||||||||||||
| 2,300 | 4,810 | 2,510 | Health | 4,810 | 6,775 | (1,965 | ) | |||||||||||||||||
| 1,627 | 1,045 | (582 | ) | Justice | 1,045 | 1,060 | (15 | ) | ||||||||||||||||
| 25,674 | 20,833 | (4,841 | ) | Transportation & Government Services | 20,833 | 27,440 | (6,607 | ) | ||||||||||||||||
| 12,426 | 5,997 | (6,429 | ) | Other Appropriations | 5,997 | 12,863 | (6,866 | ) | ||||||||||||||||
| 45,685 | 42,490 | (3,195 | ) | Total Capital Investment | 42,490 | 58,000 | (15,510 | ) | ||||||||||||||||
Notes:
(1) Restated to reflect the 2003 Budget and the November 2003 reorganization of departments
(2) Preliminary Unaudited Expenditure
(3) Reflects 2003 Budget including the November 2003 reorganization of departments
PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF VALUATION AND PURPOSE OF
DIRECT AND GUARANTEED DEBT OUTSTANDING
MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| Canadian | Canadian | |||||||||||||||||||||||
| Dollar | Dollar | Increase | Canadian | Canadian | Increase | |||||||||||||||||||
| Equivalent | Equivalent | (Decrease) | Dollar | Dollar | (Decrease) | |||||||||||||||||||
| at Date of | at Date of | March 31/04 | Valuation | Valuation | March 31/04 | |||||||||||||||||||
| Issue | Issue | over | (Note 1) | (Note 1) | over | |||||||||||||||||||
| March 31/04 | Mar 31/03 | Mar 31/03 | March 31/04 | Mar 31/03 | Mar 31/03 | |||||||||||||||||||
| (thousands of dollars) | (thousands of dollars) | |||||||||||||||||||||||
Direct Debt Payable in: | ||||||||||||||||||||||||
| 12,670,897 | 11,840,549 | 830,348 | Canadian Dollars | 12,643,097 | 11,812,749 | 830,348 | ||||||||||||||||||
| 3,051,226 | 3,209,198 | (157,972 | ) | Issues Hedged to Canadian Dollars | 3,210,936 | 3,348,799 | (137,863 | ) | ||||||||||||||||
| 2,299,794 | 2,702,851 | (403,057 | ) | U.S. Dollars | 2,227,850 | 3,305,925 | (1,078,075 | ) | ||||||||||||||||
| 1,088,839 | 1,224,167 | (135,328 | ) | Issues Hedged to U.S. Dollars | 957,913 | 939,179 | 18,734 | |||||||||||||||||
| 19,110,756 | 18,976,765 | 133,991 | Total Direct Debt | 19,039,796 | 19,406,652 | (366,856 | ) | |||||||||||||||||
Guaranteed Debt Payable in: | ||||||||||||||||||||||||
| 910,083 | 979,202 | (69,119 | ) | Canadian Dollars | 910,083 | 979,202 | (69,119 | ) | ||||||||||||||||
| 12,450 | — | 12,450 | U.S. Dollars | 12,450 | — | 12,450 | ||||||||||||||||||
| 922,533 | 979,202 | (56,669 | ) | Total Guaranteed Debt | 922,533 | 979,202 | (56,669 | ) | ||||||||||||||||
| 20,033,289 | 19,955,967 | 77,322 | Total Direct and Guaranteed Debt (note 2) | 19,962,329 | 20,385,854 | (423,525 | ) | |||||||||||||||||
| 4,810,993 | 5,679,730 | (868,737 | ) | Less: Sinking Fund Investments | 4,810,993 | 5,679,730 | (868,737 | ) | ||||||||||||||||
| 180,325 | 151,850 | 28,475 | Less: Debt Retirement Fund | 180,325 | 151,850 | 28,475 | ||||||||||||||||||
| 15,041,971 | 14,124,387 | 917,584 | Net Direct and Guaranteed Debt (note 3) | 14,971,011 | 14,554,274 | 416,737 | ||||||||||||||||||
See notes on following page
PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF VALUATION AND PURPOSE OF
DIRECT AND GUARANTEED DEBT OUTSTANDING
MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
NOTES:
| 1. | The Canadian Dollar Valuation is calculated using the foreign currency exchange rates in effect at March 31, 2004 and March 31, 2003. As at March 31, 2004, the U.S. dollar exchange rate was $1.3105 ($1.4693 as at March 31, 2003). | |||
| 2. | Direct and Guaranteed Debt are payable in Canadian and U.S. dollars. As at March 31, 2004, total Gross Debt was payable 82% in Canadian dollars and 18% in U.S. dollars. Of this total, General Government Program Debt and Other Debt was 100% payable in Canadian dollars (97% at March 31, 2003) while U.S. dollars exposure was nil (3% at March 31, 2003). Manitoba Hydro Debt was payable 57% in Canadian dollars (47% at March 31, 2003) and 43% in U.S. dollars (53% at March 31, 2003). | |||
| 3. | The above debt was issued for the following purposes: | |||
| March 31, 2004 | March 31, 2003 | |||||||||||||||
| (in thousands) | (per capita) | (in thousands) | (per capita) | |||||||||||||
| (Note 4) | (Note 4) | |||||||||||||||
| General Government Programs | 6,315,125 | 5,405 | 6,354,604 | 5,479 | ||||||||||||
| The Manitoba Hydro-Electric Board | 6,648,603 | 5,691 | 6,343,756 | 5,469 | ||||||||||||
| Capital Investments | 321,284 | 275 | 294,900 | 254 | ||||||||||||
| Manitoba Hospital Facilities | 499,000 | 427 | 445,000 | 384 | ||||||||||||
| Other | 1,186,999 | 1,016 | 1,116,014 | 962 | ||||||||||||
Total (Note 5) | 14,971,011 | 12,814 | 14,554,274 | 12,548 | ||||||||||||
| 4. | Per Capita data is based upon population figures as at April 1, 2004 and April 1, 2003 as reported by Statistics Canada. | |||
| 5. | General Government Program Debt decreased by $39.5 million due mainly to the deposit to the Debt Retirement Fund. All other debt increased $456.2 million due to the continued consolidation of Hospital Facilities debt on to the Province’s records, combined with Provincial Part B Capital requirements, Manitoba Hydro’s new capital requirements and additional funding to Crowns, offset by an improved Canadian dollar. | |||
| 6. | Manitoba’s net general purpose debt-to GDP ratio has fallen to 16.4% in 2003/04, from 20.3% in 1999/00. | |||
PROVINCE OF MANITOBA
STATEMENT OF ACCUMULATED DEFICIT
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2003/04 | 2002/03 | |||||||
| (thousands of dollars) | ||||||||
Accumulated Deficit, Beginning of Year | 7,037,938 | 6,990,938 | ||||||
Prior years’ adjustments (1) | ||||||||
| Capitalization of Tangible Capital Assets | — | 6,000 | ||||||
| Net Income Stabilization Account | — | 19,000 | ||||||
| Municipal Tax Sharing | — | 23,000 | ||||||
| Winnipeg Child and Family Services Devolution | 1,603 | — | ||||||
| Repurchase of Serial Debenture of School Divisions and Districts | — | (1,000 | ) | |||||
| Net Result for the year | 65,387 | (3,519 | ) | |||||
| Transfer to Fiscal Stabilization Fund | 5,683 | 3,519 | ||||||
Accumulated Deficit, End of Year | 7,110,611 | 7,037,938 | ||||||
| Note: | ||
| (1) | Prior years’ adjustments to the accumulated deficit have no impact on the excess of revenue over expenses as set out in balanced budget legislation. | |
PROVINCE OF MANITOBA
DEBT RETIREMENT FUND
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2003/04 | ||||||||
| Preliminary | 2002/03 | |||||||
| Actual (1) | Actual | |||||||
| (thousands of dollars) | ||||||||
Fund Balance, Beginning of Year | 151,850 | 100,444 | ||||||
Revenue: | ||||||||
| Interest Earnings | 7,118 | 3,228 | ||||||
| Transfer from Operating Fund | 96,357 | 96,357 | ||||||
| 103,475 | 99,585 | |||||||
Expenditure: | ||||||||
| Transfer to Operating Fund for: | ||||||||
| - Pension Obligation | (75,000 | ) | (48,179 | ) | ||||
Fund Balance, End of Year | 180,325 | 151,850 | ||||||
Notes:
(1) Based on projected transfers.
PROVINCE OF MANITOBA
PENSION ASSETS FUND
FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2003/04 | ||||||||
| Preliminary | 2002/03 | |||||||
| Actual (1) | Actual | |||||||
| (thousands of dollars) | ||||||||
Fund Balance, Beginning of Year | 150,707 | 107,080 | ||||||
Revenue: | ||||||||
| Interest Earnings | 38,451 | (6,352 | ) | |||||
| Transfer from Debt Retirement Fund | 75,000 | 48,178 | ||||||
| Transfer from Departments and Crown Corporations | 2,999 | 1,801 | ||||||
| 116,450 | 43,627 | |||||||
Fund Balance, End of Year | 267,157 | 150,707 | ||||||
Notes:
(1) Based on projected transfers.
PROVINCE OF MANITOBA
FISCAL STABILIZATION FUND
PROJECTION FOR THE YEAR ENDED MARCH 31, 2004
(with comparative figures for March 31, 2003)
(UNAUDITED)
| 2003/04 | ||||||||
| Preliminary | 2002/03 | |||||||
| Actual | Actual | |||||||
| (thousands of dollars) | ||||||||
Fund Balance, Beginning of Year | 235,514 | 247,254 | ||||||
Revenue | ||||||||
| Interest Earnings | 3,551 | 7,003 | ||||||
Interfund Transfers | ||||||||
| Transfer to the Operating Fund | (126,700 | ) | (22,262 | ) | ||||
| Transfer from the Operating Fund | 5,683 | 3,519 | ||||||
| - Re: Year-End Surplus | ||||||||
| (121,017 | ) | (18,743 | ) | |||||
Fund Balance, End of Year | 118,048 | 235,514 | ||||||
