 While Finance Minister Mitch Murphy blamed most of the revenue shortfall on reduced federal transfer payments – $100 million less since 2002 – he acknowledged overspending within provincial government departments and said there would be reductions in that spending, including:
- $8-million cut in grants and subsidies.
- $1-million cut in business grants.
- $4-million cut in professional and contract services.
- $20-million cut from government departments.
- $2-million capital expenditure reductions.
Murphy says the government will set up new accountability processes through the Treasury Department to make government spending accessible to all Islanders. "Islanders will know where the money has been spent and what it will be spent on," he said.
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Overview > Issues > Cuts
