VICTORIA - While governments around the globe face worsening deficits and debt, British Columbia ended the fiscal year with a smaller deficit than was forecast at the third quarter, Finance Minister Kevin Falcon announced today with the release of the 2011-12 Public Ac­counts. The Province ended the fiscal year with a deficit of $1.84 billion, which included the one-time repay­ment of $1.6 billion of HST transi­tional funding. Excluding that one-time repay­ment, the Province would have posted a deficit of $241 million. Through continued prudent fis­cal management, government is on track to eliminate the deficit and return to a balanced budget in 2013-14. The provincial economy grew 2.9 per cent in 2011, according to preliminary data from Statistics Canada, third among provinces  and better than the national aver­age rate of 2.6 per cent. Total rev­enues increased by $1.05 billion in 2011-12, led by stronger tax rev­enue reflecting growth across the economy.

Total government spending was $926 million higher than forecast in Budget 2011, primarily due to the $1.6-billion, one-time repayment of HST transitional funding to the federal government. Excluding the one-time HST repayment, overall government spending was held to an increase of 2.6 per cent, com­pared to the Budget 2011 forecast of 4.3 per cent.

Taxpayer-supported capital spending was $3.6 billion for in­vestments in schools, universities, health-care facilities and other cap­ital infrastructure. The Province’s ratio of taxpayer-supported debt to GDP, a key measure of affordability, ended the year at 16.4 per cent-one of the lowest in North America and  below the 17.5 per cent forecast in Budget 2011. Taxpayer-supported provincial debt increased $2.8 bil­lion in 2011-12 - approximately $2.1 billion less than forecast in Budget 2011.

While once again results were better than expected, B.C. remains in a pe­riod of great eco­nomic uncertain­ty with continued fluctuation in commodity pric­es and potential economic im­pacts from the ongoing Europe­an debt crisis. British Colum­bia continues to maintain the highest credit rating possible with Standard & Poor’s and Moody’s Investors Services Inc. at Triple-A. Dominion Bond Rating Service has affirmed the Province at a rating of AA (high). The Balanced Budget and Ministe­rial Accountability Act requires a 20 per cent

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