 |
|
|
Ministry of Finance and Ministry responsible for the Olympics |
|
|
B.C. ADJUSTS TO
GLOBAL ECONOMIC CHALLENGES |
|
The Province’s second quarterly financial report shows an
estimated surplus of $450 million in the 2008/09 provincial budget, down from
the estimated $1 billion projected in the last quarterly report, said Finance
Minister Colin Hansen. The surplus remains $400 million ahead of what was projected
when this years’ budget was introduced. The second quarterly report also
includes a $500 million forecast allowance in the event of further
deterioration to government’s fiscal position.
“The global economy is facing major challenges, and the
significant drop in our revenues proves that B.C. is not immune,” said
Hansen. “But we are better-positioned than other jurisdictions in
On Oct. 22, Premier Gordon Campbell announced a 10-point
plan to mitigate the impact of the economic decline on British Columbians. The
plan will improve B.C.’s economic competitiveness, reduce costs and provide an
additional $485 million in tax relief and support for businesses, families and
individuals over the next three years.
The report notes that recent private-sector estimates now
project B.C.’s annual real GDP growth will be 1.4 per cent in 2008 and 1.3 per
cent in 2009. “Although growth forecasts for B.C. are lower than previously
forecast, the overall growth outlook for B.C. in 2008 and 2009 at this time is
projected to be more optimistic than Canada as a whole,” said Hansen. “The
weaker economic outlook clearly means lower revenues going forward, in excess
of $3 billion over the three years of the current fiscal plan.”
The Province is committed to maintaining its record of
sound fiscal and economic management. The 2008/2009 budget is the fifth
consecutive balanced budget. Since 2004, the Province has received seven credit
rating upgrades to the highest possible current status of Triple A. In preparation
for Budget 2009, the minister of finance will meet with the independent Economic
Forecast Council on Dec. 5, 2008 to obtain its views on the economic outlook.
The Second Quarterly Report 2008/09 is available online at:
www.fin.gov.bc.ca/qrt-rpt/qr08/Q2_08.pdf
-30-
|
contact: |
Finance Communications 250 356-5931 |
|
|
|
||
|
For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca. |
||
