Part 4: 2005/06 FIRST QUARTERLY REPORT

2005/06 Results to June 30, 2005

The quarterly results for the April to June 2005 period show a surplus of $469 million, $641 million higher than the year-to-date budget.

For the first three months of the fiscal year revenues were up $235 million from budget. This reflects higher than expected taxpayer-supported revenues of $162 million, mainly due to higher property transfer tax revenues reflecting strong year-to-date housing sales, and higher than expected forestry revenues, mainly due to improved harvest volumes for the first three months of the fiscal year. Commercial crown net earnings were up $73 million reflecting stronger results for BC Lotteries and ICBC.

Government expenses for the April to June period were $406 million lower than forecast. This reflects lower than expected spending in most ministries ($152 million), and lower ministry expenses recovered from external entities ($97 million) – this is in part due to delayed spending pending the anticipated government reorganization announced in June 2005. In addition, net spending by taxpayer-supported crown corporations and the SUCH sector was $157 million lower than forecast.

Capital spending totaled $765 million for the quarter ended June 30, 2005, $198 million lower than forecast. This is primarily due to lower than forecast spending by government ministries (in part due to spending delays pending the government reorganization), lower health capital spending and lower capital spending by BC Hydro. Provincial debt was $35.9 billion at June 30, 2005, $235 million lower than budget. Taxpayer supported debt totaled $28.4 billion at June 30, 2005, $532 million lower than budget as a result of lower capital spending and the improved surplus. Self-supported debt stood at $7.5 billion, $297 million higher than budget, due mainly to accelerated timing of BC Hydro requirements.

The following tables provide further details on quarterly results for the April to June 2005 period.