Government’s expenses have been approved through a special warrant for a two-month period (April 1, 2021 to May 31, 2021) in the amount of $2,086,721,900. This allows the operations of government to continue until the House of Assembly reopens and has had an opportunity to consider an interim supply bill. Government operations include payroll, income support and other expenditure obligations such as the calling and awarding of tenders, as well as annual contractual obligations that must be encumbered pursuant to the Financial Administration Act.

The special warrant is based on allocations approved during Budget 2020 which were unanimously approved by the House of Assembly in November 2020.

The Financial Administration Act permits an appropriation for up to four months when the House of Assembly is dissolved. Two months appropriation has been determined as required, with the understanding that the House of Assembly will be reconvened as soon as possible post-election to debate interim supply.

The special warrant will have no incremental impact on government’s financial position in 2021-22 beyond what is anticipated to be included in Budget 2021.

The authority to prepare a special warrant is outlined in subsection 28(3.1) of the Financial Administration Act and in the backgrounder below.

– 30 –

Media contact
Diana Quinton
Finance
709-729-2477, 697-1566
dianaquinton@gov.nl.ca

BACKGROUNDER

Subsection 28(3.1) of the Financial Administration Act

28 (3.1) Where at the end of a fiscal year the House of Assembly is dissolved and an appropriation to defray expenses of the public service is required for a period not exceeding the first 4 months of the following fiscal year, the Lieutenant-Governor in Council may, upon the recommendation in writing of the board, order that a special warrant be prepared for signature by the Lieutenant-Governor for the issue of the amount estimated to be required.