NEWS RELEASE
For Immediate Release 2009FIN0003-000170 Feb. 9, 2009	Ministry of Finance and Ministry responsible for the Olympics
GOVERNMENT TABLES BILL TO PROTECT PUBLIC SERVICES

VICTORIA – Amendments introduced today will protect public services such as health and education that B.C. families depend on, and ensure a return to balanced budgets by the 2011-12 fiscal year, announced Minister of Finance Colin Hansen.

 

“British Columbia is feeling the impact of global economic forces beyond our control,” said Hansen. “We have seen an unprecedented drop in provincial revenues. In order to ensure British Columbians continue to have access to quality health care and education, we will run a temporary deficit. The proposed changes will allow us to make responsible choices today to build for a stronger future.”

 

            The proposed changes to the Balanced Budget and Ministerial Accountability Act will allow for deficit budgets for two years only and require a balanced budget again in fiscal 2011-12. Changes will also be made to the Budget Transparency and Accountability Act requiring that any increase in cash during the fiscal year in the Consolidated Revenue Fund in the years beyond fiscal 2010-2011 be used to pay down the direct operating debt, and that discretionary end-of-year spending through supplementary estimates will be prohibited until the direct operating debt is eliminated.

 

The sections of the Balanced Budget and Ministerial Accountability Act concerning ministerial holdbacks remain in effect. If the actual results are still in deficit, every cabinet minister will take a 10 per cent reduction to their ministerial salary.

 

      The government still believes strongly in balanced budgets. In Budget 2009, the Province will lay out a detailed plan to balance the budget by 2011-12.

 

      When tabled on Feb. 17, Budget 2009 will include significant capital spending to build valuable infrastructure, providing thousands of jobs while protecting public services and ensuring that British Columbia is well-positioned to take advantage of the coming recovery.

 

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Media contact:	Charles Suenderman Communications Manager Ministry of Finance 250 356-9872
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