(in thousands of dollars) March 31, 2008, with comparative figures for 2007

	2008	2007
Revenue:
Provincial grants:
Operating grant	$ 9,881	$ 10,231
Strategic investment grant	14,491	10,364
Loan valuation allowance	1,600	1,600
Capital grant	-	1,248
Interest on loans receivable	8,488	8,635
Other investment income	434	351
Gain (loss) on sale of property	790	(1,072)
Miscellaneous	1,143	1,318
	36,827	32,675
Expenses:
Schedule of operating expenses	10,023	10,279
Strategic Investments	14,491	10,364
Allowance for credit losses and provision for payment of guarantees	2,909	1,917
Schedule of Nova Scotia Business Fund expenses	7,848	8,272
	35,271	30,832
Excess of revenue over expenditures	1,556	1,843
Retained earnings, beginning of year	26,400	24,755
Less: Dividend to shareholder	(1,190)	(198)
Retained earnings, end of year	26,766	26,400

See accompanying notes to financial statements