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Performance Indicator 7: Surplus/(Deficit)

Where BC Ranks, Provincial Comparison

Year

1997/98

1998/99

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

Rank

6

7

4

2

9

9

6

2

2

2

Performance Indicator Seven is based on the surplusses and deficits of the provincial governments as reported by Statistics Canada's Financial Management System. BC recorded the second largest surplus as a percent of GDP among the provinces in 2006/07, as it has since 2004/05.

Prior to this three year stretch, BC ran deficits every year since 1991/92 except for 1999/00 and 2000/01. The two turn-ofthe- century surpluses occurred thanks to temporary spikes in electricity and natural gas revenues. In 2003/04, BC started to rebound, and in 2004/05 moved into a surplus position and overtook the provincial average. By comparison, Alberta and Saskatchewan have both been in surplus positions since 1994/95.

Why It's Important
Over time, successive deficits will increase the total debt level. Large portions of provincial budgets may then be required to finance accumulated debt burdens with money that could otherwise be spent on priority government programs or used to lower taxes.




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