LARGE SURPLUS BUILDS HOSPITALS, SCHOOLS AND ROADS

VICTORIA – The Province finished its fiscal year with a significant surplus, which helped fund a record investment in public infrastructure and lowered British Columbia’s debt, Finance Minister Carole Taylor announced with the release of the 2006/07 Public Accounts.

The audited financial statements show the Province of British Columbia ended the fiscal year with a surplus of $4.1 billion. The surplus, along with a drawdown of cash balances, allowed the Province to reduce debt by $1.0 billion and finance a record $3.4-billion investment in building and upgrading schools, universities, colleges, hospitals, roads and bridges to improve services and meet the needs of a growing economy.

“A big surplus means a big investment in our future,” said Taylor. “We are building health-care facilities to meet the needs of an aging population, we are upgrading transportation networks to keep our economy moving, and we are expanding post-secondary spaces for our youth. Our surplus allows us to do this and still reduce B.C.’s debt.”

Taxpayer-supported capital spending increased to $3.4 billion in 2006/07, up $265 million compared to $3.1 billion in 2005/06. Over the past three years, the Province has delivered $8.8 billion in taxpayer-supported capital spending while simultaneously reducing debt.

“In 2006, the budget planned for debt to grow by $1.7 billion to help finance public building projects,” said Taylor. “Fortunately, we were able to use the larger-than-forecast surplus to both pay for these projects and pay down debt by $1.0 billion. Building our province and reducing debt are investments that will generate benefits for years to come.”

This is the third consecutive year the Public Accounts received a clean audit opinion from the Office of the Auditor General. The Public Accounts meet the standards of Generally Accepted Accounting Principles and fully consolidate information from school districts, universities, colleges and health authorities (SUCH sector) in the province’s reporting systems.

In addition to the Public Accounts, the Province also released its Ministerial Accountability Report, government's annual strategic plan report, and annual service plan reports for ministries and government agencies. The Ministerial Accountability Report details the fiscal and other accountability targets ministers have achieved. Service plan reports summarize the progress of individual ministries and agencies, as well as the government as a whole, in meeting the performance targets laid out at the beginning of each fiscal year.

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The Public Accounts and related documents are available online at: www.gov.bc.ca/fin/

1 backgrounder(s) attached.
Media contact:	Robert Pauliszyn Communications Director 250 356-2821 250 213-5096 (cell)

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