British Columbia Public Accounts Show Surplus
VICTORIA – Despite a weaker economy and declining revenues, British Columbia posted a surplus in the last fiscal year, announced Minister of Finance and Deputy Premier Colin Hansen today as he released the 2008/09 Public Accounts.
The audited financial statements show the Province of British Columbia ended the fiscal year with a surplus of $78 million, despite a decline in total revenue of $1.5 billion compared to last year due to the broad-based economic downturn.
“Last year’s economic environment required prudent fiscal management to maintain a balanced budget,” said Hansen. “The sharp revenue declines we experienced underscore the need for continued vigilance to ensure we can continue to deliver the vital services British Columbians depend on while keeping our program spending sustainable.”
The largest declines were seen in personal income tax revenues, which decreased by $863 million compared to last year; corporate tax revenues, which decreased by $212 million; and social services tax revenues, which decreased by $114 million. Lower personal and corporate tax revenues are in part the result of the accelerated tax reductions associated with the Province’s carbon tax announced last fall. Natural resource revenues increased by $70 million from last year, due primarily to improvements in natural gas prices.
Even with the decline in revenues, government increased health-care spending by $885 million, to $15.1 billion. Education expenditures were also increased by $491 million, to $10.5 billion, and social service spending was increased by $200 million, to $3.2 billion. Approximately 75 per cent of the Province’s total operating costs are spent in these areas.
In 2008/09, the Province continued to make major investments in public infrastructure needed to deliver social programs and stimulate the economy.
“The Province spent $3.8 billion on capital last year to build and upgrade schools, universities, colleges, hospitals, roads, bridges and other projects,” said Hansen. “At the same time, British Columbia continued to maintain one of the strongest credit ratings among all Canadian provinces.”
“Through responsible fiscal management, the taxpayer-supported debt-to-GDP ratio, a key measure of the Province’s ability to repay debt, remains low,” said Hansen. “This is critical to ensuring that future generations are not saddled with a debt burden they cannot afford.”
Online versions of the public accounts and related documents can be found at the following link: www.fin.gov.bc.ca/ocg.htm.
