British Columbia Budget 2009

The Smart Choice: Electronic Distribution

This year, there will be several changes to the way we distribute budget documents. As part of our commitment to greener choices, and to reduce operational costs, we are significantly reducing the number of printed materials, expanding the distribution of CDs and encouraging people to view the documents online and print only pages they require. [read more …]

Government uses the budget process to help set fiscal priorities, allocate resources and achieve policy objectives.
These activities span many months and involve every organization of the provincial government. The process is overseen by Treasury Board, a central planning committee of Cabinet that is chaired by the Minister of Finance.
The process culminates on Budget Day when the Minister of Finance presents the legislative assembly with several key financial documents, including the Budget and Fiscal Plan, the Estimates and the Ministry/Crown Service Plans.

The Ministry of Finance has a clear and transparent policy of prudent budget forecasts. Our budget plan is based on an economic forecast that is slightly more conservative than the average of the Economic Forecast Council, which is comprised of independent private sector economists. The budget includes additional levels of prudence – including the forecast allowance, contingencies (operating & capital) to help ensure we achieve our fiscal targets. Much of the variability in recent years stemmed from volatile commodity prices including natural gas, stronger than forecasted economic growth, and unforeseen/one-time federal contributions.

Current instability and turmoil in financial markets highlights the need for ongoing prudence in building government budgets. Recent surpluses in B.C. have helped finance important infrastructure investments including new hospitals, roads, public transit and schools while keeping debt affordable for future generations of British Columbians.

Infrastructure investments have totalled $16.4 billion over the past 4 years (2004/05 through 2007/08)
The total provincial debt declined by $3.1 billion from March 31, 2004 to March 31, 2008.
Taxpayer-supported debt to GDP ratio has declined from 20.6% in 2001 to 13.4% in 2008.

Since November 2004, the Province has received seven credit rating upgrades. British Columbia now has a AAA credit rating—the highest possible. In providing these upgrades, the rating agencies cited the Province’s prudent fiscal management, transparency in budgeting and reporting and its low and declining debt burden.

Summer: The government’s fiscal framework (an outline of current and projected economic and fiscal conditions) is updated to help the government set preliminary fiscal targets. These targets are communicated to government ministries and agencies in the form of detailed budget instructions.
Fall: A select standing committee of the legislature conducts pre-budget consultations to gain insights into public expectations and help shape government priorities. Ministries and Crown agencies prepare budget submissions that outline the implication of achieving previously-set fiscal targets.
Winter: Treasury Board uses its review of budget submissions to finalize ministry funding levels and Crown agency targets. The Minister of Finance, in consultation with the premier, decides on any revenue measures to be announced in the budget. The minister makes final budget decisions in the weeks just prior to the budget.
Spring: Each year, the Budget is released a week after the Throne Speech on the third Tuesday of February.