The introduction of a balanced budget for fiscal 2004/2005 and beyond is a key commitment of this Service Plan, and a significant accomplishment on behalf of British Columbians. It is built on the ministry's two main priorities: to restore sound fiscal management, and to revitalize British Columbia's economy.

I'm proud of our government's balanced budget plan, because no government can serve its citizens well unless it prudently manages its revenues and spending. It sends an important signal nationally and internationally that British Columbia has put its fiscal house in order and created the right environment for more economic growth and prosperity.

I am particularly proud of this achievement in light of the economic shocks that B.C. has recently endured: a record forest fire season, floods, SARS, BSE, and continuing global economic uncertainty. It points to the resiliency of our three-year plan, the value of prudent forecasting and planning, and our unwavering commitment to our goals.

This Service Plan builds on the work our government has done to improve B.C.'s economy and investment climate, including significant tax reductions and regulatory reforms. We have increased disposable incomes and boosted consumer confidence through personal income tax cuts averaging 25 per cent and by providing the lowest rates of personal income tax in Canada for the two lowest tax brackets. Our efforts to diversify the provincial economy have resulted in significant natural gas development spurred on by targeted royalty incentives and credits along with provincial sales tax exemptions for production machinery and equipment. The Ports Competitiveness Strategy has improved the tax structure for B.C. ports to help them attract new investment and compete globally. These are just a few examples of our government's ongoing commitment to make BC a better place to live, work and invest.

Now that we have introduced a balanced budget, we will work towards reducing the overall debt burden and improving the province's debt-to-GDP ratio. Other initiatives include streamlining and modernizing legislation governing the financial services and real estate sectors, and improving service to individuals and businesses by increasing electronic delivery of government services.

This service plan also delivers on our commitment to increase transparency and accountability by adopting Generally Accepted Accounting Principles (GAAP) as set by the Canadian Institute of Chartered Accountants. British Columbia is the only province to have legislated GAAP, and will now include, effective with the 2004/05 fiscal year, the full operations of Schools, Universities, Colleges, and Health Authorities as part of its budget and financial reporting.

I would like to acknowledge the professionalism, dedication, and hard work of ministry staff in preparing and implementing this Service Plan. These plans are important tools in guiding ministry decisions and communicating government priorities to British Columbians. I am pleased to present this plan on behalf of the Ministry of Finance, and I look forward to the accomplishments it will bring over the next three years as we bring out the best in British Columbia.

Honourable Gary Collins
Minister of Finance

February 4, 2004