NEWS RELEASE |
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BALANCED BUDGET LAW ENSURES MINISTERIAL ACCOUNTABILITY
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VICTORIA – Legislation passed today means cabinet ministers will face personal financial penalties for over-budget spending and requires the government to balance its budget by 2004-05.
"The Balanced Budget and Ministerial Accountability Act holds cabinet members responsible, individually and collectively, for ensuring ministries live within their budgets and government meets its bottom-line commitments," said Minister of Finance Gary Collins. "We promised to introduce real balanced-budget legislation in our first 90 days in office, and we've delivered."
The act mandates balanced budgets for 2004-05 and each year thereafter. It also ties ministers' salaries directly to budget targets.
Beginning April 1, 2002, the government will withhold 20 per cent of cabinet ministers' ministerial salaries. Ministers will be able to earn half the sum back by meeting their ministry budget and other targets. Only if the government as a whole meets its provincial budget target will ministers receive the other 10 per cent.
"This act says that if we overspend taxpayers' dollars, we get hit in the pocketbook, too," said Collins. "It shows we're serious about improving fiscal management in British Columbia."
Collins announced the new legislation during his economic and fiscal update on July 30. The update also introduced a package of business tax cuts, foreshadowed a core services review to examine all government programs and services and committed the government to publish three-year budgets and service plans as part of the 2002 budget.
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Contact:
Ministry of Finance
Communications Branch
250 387-3347
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Visit the province's Web site at http://www.gov.bc.ca/ for online information and services. |
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