Prudent fiscal management key to reducing deficit
Channel: GovernmentofBC
Date: 26/07/2012

While governments around the globe face worsening deficits and debt, British Columbia ended the fiscal year with a smaller deficit than was forecast at the third quarter, Finance Minister Kevin Falcon announced today with the release of the 2011-12 Public Accounts.

The Province ended the fiscal year with a deficit of $1.84 billion, which included the one-time repayment of $1.6 billion of HST transitional funding. Excluding that one-time repayment, the Province would have posted a deficit of $241 million. Through continued prudent fiscal management, government is on track to eliminate the deficit and return to a balanced budget in 2013-14.

The provincial economy grew 2.9 per cent in 2011, according to preliminary data from Statistics Canada, third among provinces and better than the national average rate of 2.6 per cent. Total revenues increased by $1.05 billion in 2011-12, led by stronger tax revenue reflecting growth across the economy.

Total government spending was $926 million higher than forecast in Budget 2011, primarily due to the $1.6-billion, one-time repayment of HST transitional funding to the federal government. Excluding the one-time HST repayment, overall government spending was held to an increase of 2.6 per cent, compared to the Budget 2011 forecast of 4.3 per cent.

Taxpayer-supported capital spending was $3.6 billion for investments in schools, universities, health-care facilities and other capital infrastructure. The Province's ratio of taxpayer-supported debt to GDP, a key measure of affordability, ended the year at 16.4 per cent-one of the lowest in North America and below the 17.5 per cent forecast in Budget 2011. Taxpayer-supported provincial debt increased $2.8 billion in 2011-12 - approximately $2.1 billion less than forecast in Budget 2011.

For more information, please visit:
http://www.newsroom.gov.bc.ca/2012/07/prudent-fiscal-management-key-to-reducing-deficit.html