BCPB Home > Benchmarks > Rankings > Performance Indicator 4: Debt

Performance Indicator 4: Debt

Where BC Ranks, Provincial Comparison

Year

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Rank

2

2

2

2

2

2

3

3

2

2

Performance Indicator Four tracks government direct debt plus the debt of dependent Crown Corporations and agencies. Lower debt burdens earn better ranks.

In 2006/07, BC scored extremely well, posting the second lowest ratio. Alberta ranked first, having eliminated its debt. In 2006/07, BC's taxpayer-supported debt was 77 percent of the province's total debt burden. The remaining amount was selfsupported debt incurred by commercial Crown Corporations and agencies that carry and repay their own debt.

The difference in debt as a percent of GDP between BC and the provincial average shrank from 7.3 percentage points in 1999/00 to 2.2 in 2002/03 as BC's ratio generally grew and the Canadian average ratio fell. The difference grew to 4.2 percentage points in 2006/07 as BC's ratio fell faster than average.

Why It's Important
Payments to service taxpayer-supported debt can consume a large portion of a jurisdiction's budget, thereby diminishing its capacity to provide public services. The debt burden is also an important indication of a jurisdiction's attractiveness for business investment.
Note
The data used in this indicator may not match the BC definition of taxpayer-supported debt due to accounting differences among provinces.

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