Monday, July 17, 2006

BC's $3 Billion Surplus


http://www.castanet.net/edition/news-story-20339-3-.htm#20339
by Special - Story: 20339July 17, 2006 / 2:40 pm
A strong economy, higher resource revenues and sound fiscal management helped generate a $3.1-billion surplus and a $1.5-billion reduction in provincial debt, Finance Minister Carole Taylor announced in releasing the Province's 2005/06 audited financial statements. Total provincial expense reached $32.9 billion, up $2.2 billion from the previous year. The increase reflects $710 million in negotiating incentive payments for contracts settled prior to March 31, 2006. In addition, health expense rose by $885 million to $12.8 billion, a 7.7 per cent increase from the previous year largely due to more surgeries, preventative health programs and providing additional service to a growing and aging population. Education expense rose $431 million to $9 billion, a 5.1 per cent increase from 2004/05 primarily due to new spaces in colleges and universities. Together, health and education represent two-thirds of all government expense. Total government revenues rose to $35.9 billion in 2005/06, up $2.6 billion from 2004/05, reflecting the 3.5 per cent economic growth in 2005, taxation revenue growth, strong commodity prices, and increased federal contributions, partially offset by weaker results from commercial crown corporations. Total tax revenue was $16.4 billion, almost $1.5 billion higher than the previous year. Natural gas revenues were $1.9 billion, up $482 million from the previous year. Total provincial debt fell to $34.4 billion, down almost $1.5 billion from the previous year. The taxpayer-supported debt to GDP ratio, a key measure of debt affordability, declined to 16.2 per cent from 18.2 per cent. British Columbia invested $3 billion in provincial infrastructure in 2005/06, 33 per cent more than the previous year. New, renovated and expanded education and health facilities accounted for almost two-thirds of this spending.

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