Thank you, Mr. Speaker. Later today, I will be tabling the government's 1995 interim financial statements. These statements show our financial results from the past fiscal years. In summary, the government ends up with a $15.6 million annual deficit, and total revenues of $1 billion and $255.7 million. This is a slight improvement from the $30.8 million annual deficit estimated in the May 1996 budget and resulted in a closing deficit of $27.2 million.

As I stated in the May 1996 budget, federal reductions to our form of finance and revenue began in the current fiscal year. The two year fiscal recovery plan developed by this Legislative Assembly allows us to recover from these reductions and once again start living within our financial means.

In May, I estimated that the deficit for the current fiscal year would be approximately 43 million dollars. To ensure that we meet this target, the Legislative Assembly passed amendments to the Deficit Elimination Act, also, the Financial Management Board instituted an expenditure management system to monitor on a monthly basis, the progress we are making toward meeting our deficit target and to ensure corrective action is taken, if necessary.

With these two accountability measures in place and the budget reforms we have implemented, I believe we will stay within our target of a 43 million dollar annual deficit for 96-97. Mr. Speaker, our plan is to return to a balanced annual budget in 97-98. We are on course to achieve this goal, if we remain committed to the reforms instituted by this House.

But make no mistake, Mr. Speaker, the reforms require that more difficult decisions lie ahead of us. Our priority must remain balancing the budget and moving ahead with the critical social reforms and economic initiatives upon which our future depends.

Thank you, Mr. Speaker.