A growing economy and prudent financial management have helped British Columbia post its fourth consecutive surplus.
July 17, 2008
VICTORIA – A growing economy and prudent financial management have helped British Columbia post its fourth consecutive surplus, announced Finance Minister Colin Hansen today when he released the
2007/08 Public Accounts.
The audited financial statements of British Columbia show a $2.9 billion surplus as a result of the province’s strong economic performance. Tax revenues were $1.4 billion higher than forecast, reflecting robust employment and consumer confidence. Crown corporation earnings also increased by $288 million over budget.
“Another surplus indicates that the prudent planning and well-managed spending is proving successful even as we face difficult challenges in our natural resource sector,” said Hansen. “British Columbia’s economic outlook remains positive. However, other jurisdictions are experiencing economic hardships, which will impact our province. Our conservative fiscal approach puts us in a strong financial position that will allow us to continue to meet the needs of British Columbians and support our growing economy.”
Infrastructure investment remained strong, with capital spending of $3.7 billion in 2007/08 to build and upgrade schools, hospitals and roads. Taxpayer supported debt increased by $619 million to help finance these capital demands. The growth in taxpayer supported debt was planned to increase by approximately 3.2 per cent annually between 2006/07 and 2009/10 to support projects identified in British Columbia’s 10-year capital plan.
“Our taxpayer supported debt to GDP ratio, a key measure of fiscal sustainability maintained its downward trend this year falling to 14.0 per cent,” added Hansen. “Our economy is growing, we are renewing our infrastructure and we have a solid financial foundation to build on as we balance continued strong economic growth with our environmental priorities.”
The Auditor General gave a qualified audit opinion on the Public Accounts for 2007/08, expressing a positive opinion on the financial statements but citing reservations on how certain items are reported. The Auditor General’s recommendations are always carefully considered.
The Ministry of Finance reviewed the recommendations and, after broad consultation with government experts, other jurisdictions in Canada, and the independent Accounting Policy Advisory Committee, concluded that the recommended changes should not be implemented. The issues identified are reported consistently from previous years when unqualified audit opinions were provided and continue to meet Generally Accepted Accounting Principles (GAAP).
