Home The 2001 Pre-Budget Public Consultation 
Our Debt and Credit Rating

Since Confederation our total public sector debt has grown to about $6.7 billion. Adding the amount needed to fully fund our public sector pension plans increases the total debt to about $9 billion, around $16,500 for every adult and child in the Province. Interest and other costs of this debt are over $500 million a year, money that could otherwise be directed to improve public services or lower taxes.

With this debt level, it is important to protect our credit rating. Our sound fiscal performance in the recent past, combined with our positive economic outlook, has resulted in upgrades in our credit rating by two bond rating agencies, one in 1998 and a second in 1999. This could lower debt servicing costs. However, even with these upgrades, we still have the lowest overall rating of any Province. To see further improvements in our credit rating, we will have to continue to prudently manage our financial affairs and control our deficits. Over the longer term we must reduce the accumulated debt if we are to lower our annual interest costs.

Our Bugetary Deficits
Source: Provincial Public Accounts and Provincial Budget
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