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Performance Indicator 7: Surplus/(Deficit)

Where BC Ranks, Provincial Comparison

Year

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

Rank

6

2

9

9

6

2

2

2

3

5

Performance Indicator Seven is based on the surpluses and deficits of the provincial governments as reported by Statistics Canada's Financial Management System.

BC recorded the fifth-largest surplus relative to GDP rate among the provinces in 2008/2009. Taken together, the provinces managed to post a slight surplus although three were in deficit and four, including BC, were balanced or had small surpluses.

British Columbia has been in surplus for five years. Prior to this, deficits were the norm; BC posted deficits in 12 of 13 years between 1991/92 and 2003/04. All provinces were in deficit in the early 1990s. BC was in the middle of the pack in 1991/92 but was closer to the worst-performing province.

Eight provinces posted a surplus in 2000/01. BC was one of them but this surplus was preceded by nine, and followed by, three deficits.

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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