Top Ten - 2011-12 Public Accounts

Courtesy of Hon. Pat Bell (Minister of Jobs, Tourism and Innovation)

1. 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.

2. 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.

3. 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.

4. 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.

5. While once again results were better than expected, B.C. remains in a period of great economic uncertainty with continued fluctuation in commodity prices and potential economic impacts from the ongoing European debt crisis. British Columbia continues to maintain the highest credit rating possible with Standard & Poor's and Moody's Investors Services Inc. at Triple-A. Dominion Bond Rating Service has affirmed the Province at a rating of AA (high).

6. The Balanced Budget and Ministerial Accountability Act requires a 20 per cent ministerial salary holdback for all members of cabinet to ensure ministries operate within their own budgets and government meets its overall financial commitment. As the government posted a deficit for 2011-12, cabinet members lose 10 per cent of their salary. All ministers achieved their individual ministry fiscal targets and will receive the other 10 per cent of their salary holdback. The Ministerial Accountability Report, released today, outlines the specific financial targets ministers must achieve to receive their ministerial salary holdback.

7. Retail sales, an indicator of consumer confidence, increased by 3.1 per cent in 2011. Exports of goods and services from British Columbia grew 14 per cent in 2011 despite the slow recovery of the U.S. economy, the ongoing European debt situation and a strong Canadian dollar.

8. Contributions from the federal government decreased by $290 million from the previous year, largely due to the completion of federal transfer programs for infrastructure. Natural resource revenues increased by $84 million (3 per cent) from 2010-11 to 2011-12. Petroleum, natural gas and mineral royalties increased by $48 million (3 per cent) and forest revenues increased by $37 million (8 per cent) over 2010-11. Other sources of natural resource revenue decreased by $1 million from 2010-11.

9. The taxpayer-supported debt to GDP ratio, a key measure of affordability, was 16.4 per cent in 2011-12, lower than the 17.5 per cent forecast in Budget 2011. Total provincial debt, the most commonly used measure of debt, was $50,193 million in 2011-12. Debt increased $5,039 million over 2010-11. This was due to increased borrowing to fund capital projects and working capital requirements. British Columbia continues to maintain one of the strongest credit ratings among Canadian provinces. Standard and Poor’s and Moody’s Investment Services each rate the Province triple A, the highest-possible rating, while Dominion Bond Rating Service rates the Province AA(high).

10. Taxpayer spending on capital was $3,571 million to build and upgrade schools, universities, colleges, hospitals, roads, bridges and other infrastructure to deliver programs and services.