|BUDGET AND FISCAL
PLAN 2003/04 – 2005/06
||Ministry of Finance
February 18, 2003
As required by Section 7(d) of the Budget Transparency and Accountability
Act (BTAA), I am confirming that the Budget and Fiscal Plan
contains the following elements:
— The economic and fiscal forecasts for 2003/04, which
are detailed in Part 1 and Part 3.
— All material economic, demographic, taxation, accounting
policy and other assumptions underlying the 2003/04 economic,
revenue, expenditure, deficit and debt forecasts are also disclosed.
We have disclosed certain key assumptions regarding ongoing or
anticipated negotiations, or other issues. In particular:
— Government has provided no additional funding for future
wage settlements beyond the 0-0-0 mandate from 2003/04 to 2005/06;
—The status quo will prevail in the U.S. lumber dispute
and the B.C. industry will continue under the burden of a 27 per cent
—No revenues arising from the February 5, 2003 First
Ministers’ Accord on Health Care Renewal have been booked, as
the precise amounts are uncertain; however since all new revenues
will be committed to continuing with health care reforms, there
is no expected bottom line effect (subject to the structure
ultimately used by the federal government to distribute the
—The devolution of BC Ferries to a regulated private
sector corporation governed by a separate ferry authority is
assumed to be complete by March 31, 2003, and to move the corporation
outside the government reporting entity.
These and other major areas of risk to the plan known at this
time are disclosed in the risks
section in Part 1 and in the material
assumption tables in the appendix.
— The report on the current advice of the Minister’s Economic
Forecast Council on economic growth, including the range of forecasts
for 2003 and 2004. This is found at the end of Part 3.
Although not required by the BTAA, the most material assumptions
and sensitivities for the subsequent two years of the fiscal plan
are also disclosed.
This budget represents a further step for the B.C. government in
managing within a three-year fiscal framework, as the government
updates the previous year’s plan and extends it into the 2005/06
fiscal year. Three-year forecasts are set out for individual ministries,
major revenue sources, capital spending and debt. The ministry spending
plans have been developed after review by Treasury Board and Government
Caucus Committees. Crown corporation forecasts have been approved
by the respective Boards of Directors. In addition, the Budget
and Fiscal Plan is accompanied by service plans for ministries
and Crown corporations, detailing the outcomes expected from the
financial resources provided. The Budget and Fiscal Plan
is consistent with the government’s strategic plan.
As required under section 7(e) of the BTAA, the forecast
allowance, which is an adjustment to the most likely forecast
of the 2003/04 deficit, is also disclosed (see page 34).
Government will continually review its spending and revenues in
order to help ensure the balanced budget target is achieved. As
significant new developments occur, their effect on the fiscal plan
will be disclosed in the Quarterly Reports, or as required
I would like to thank staff in all government ministries, including
the Ministry of Finance, and Crown corporations for their work in
development of their plans and preparation of these multi-year economic
and financial forecasts.
Deputy Minister and
Secretary to Treasury Board
|Ministry of Finance
PO Box 9469 Stn
Victoria BC V8W 9V8
1st Floor - 617