Goals, Objectives, Strategies and Results

Government Strategic Goals		Ministry Mission To provide sustainable fiscal policies and regulatory frameworks that support a strong and vibrant provincial economy.
		Ministry Goals		Ministry Objectives		Performance Measures/Indicators
A strong and vibrant provincial economy.		1. Maintain a balanced budget annually.		1. Effective management of government's fiscal plan.		Achieve annual targets for provincial budget. Debt to GDP ratio. Provincial credit rating.
		2. A tax and regulatory climate that supports a strong and vibrant economy.		1. A fair and competitive tax environment.		Provincial ranking of personal income tax rates for the bottom two tax brackets. Provincial ranking of the top personal marginal tax rate.
				2. Efficient and effective financial and corporate regulatory frameworks and services that protect the public interest.		Number of regulatory requirements. Per cent growth in business registrations. Per cent of electronic incorporations and registrations.
		3. Effective financial and resource management and reporting.		1. Effective risk-based cash and debt management.		Debt services costs.
				2. Enhance risk-based management of government's resources.		Annual self-insurance savings. Risk-based savings. Risk Maturity Rating.
				3. Transparent and accountable financial and procurement policies and practices.		Stakeholder satisfaction with financial and procurement policy frameworks. Per cent responses to ministerial correspondence completed within two weeks.
				4. Meet statutory reporting requirements and comply with GAAP in all material respects.		Full implementation of GAAP. Public Accounts delivery date.
		4. A leader in innovative business and people practices.		1. Performance-focused workforce.		Per cent of staff with a formal Performance Review.
				2. Learning and innovative organization.		Per cent of staff who agree they have adequate opportunities to develop their skills.

According to the Balanced Budget and Ministerial Accountability Act, all provincial budgets must be balanced. This requirement supports sound fiscal management and is a cornerstone in maintaining confidence in British Columbia's economy. A balanced budget allows for sustainable investments in education, patient care and other priority services and signals provincially, nationally and internationally that British Columbia has its fiscal house in order. Fiscal responsibility today, also means that the cost of current public services will not be passed on to future generations.

Development and maintenance of a prudent and resilient fiscal plan is critical to government's ability to balance the provincial budget annually. The ministry plays a critical role in overseeing the fiscal plan and works closely with ministry and other public sector partners to ensure that government's annual and three-year revenue and expenditure targets are met.

Key strategies include: full integration of Crown corporations and the schools, universities, colleges and hospitals (SUCH) sector into the fiscal planning process; and continual update of government's three year fiscal plan including monitoring and corrective action as required.

Performance Measures:

Budget targets: Government's ability to balance the budget and adhere to its fiscal plan is measured by a comparison of actual spending and revenue (Public Accounts) against budgeted spending and revenue targets (Estimates) at the ministry and government levels.

Debt to GDP ratio: Maintaining a relatively low taxpayer-supported Debt-to-GDP ratio signifies a healthy balance sheet and effectively means affordable debt levels. Rating agencies rely on this balance-sheet measure as one among a number of important credit rating considerations.

Provincial credit rating: The interest rate paid by the province when it borrows in the domestic and international capital markets is influenced by the credit ratings supplied by third party agencies. In the case of the province, rating agencies evaluate debt as a percentage of GDP, and the significance of interest owing as a percentage of gross receipts. Credit ratings are ranked in descending alphabetical order from A to C — highest to lowest (Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C). The Aa rating is provided to those public and private sector organizations that offer excellent financial security and are generally considered high-grade entities.

The Ministry of Finance plays an essential role in the creation and maintenance of a tax and regulatory climate that supports economic development and job growth. Since 2001, the ministry has delivered a series of tax reductions targeted to individuals and businesses. These initiatives include a 25 per cent reduction in personal income taxes ensuring individuals in the bottom two-tax brackets now have the lowest personal income tax rates in the country. The province has also introduced an 18 per cent reduction in the general corporate income tax rate, eliminated the capital tax for general corporations and provided an exemption from provincial sales tax for production machinery and equipment. Other more targeted initiatives include property tax relief for small hydroelectric projects and the province's major port operators, new incentives for digital animation and visual effects and an increase in the threshold for the small business tax rate. Most recently the government was able to return to a seven per cent provincial sales tax rate reversing an earlier 0.5 per cent increase that was necessary to pay for an increase in health care professional's compensation. As a result of these steps, the province's businesses can now rely on a tax environment that allows them to compete and succeed on the international stage while creating jobs at home.

The ministry will continue to reduce unnecessary regulation and red tape in the province to improve the effectiveness of regulatory frameworks and strengthen consumer confidence. Other initiatives include an expansion of e-government that will improve service, expand accessibility and reduce cost.

The province's ability to develop a strong and vibrant economy is dependent upon having a tax environment that is both nationally and internationally competitive. Jurisdictions with competitive tax regimes and regulatory frameworks are successful in attracting and retaining personal and business investment. Taking advantage of these opportunities enhances economic development and increases the revenues available to support critical government services like health care and education. In addition, a tax system that is perceived to be fair increases the confidence of British Columbians in their government.

Key strategies include ongoing review of the province's tax system in comparison to other jurisdictions and analysis of potential reforms to maintain and improve competitiveness.

Performance Measures:

Personal income tax (bottom two brackets): Government has cut the base personal income tax rate to the lowest rate of any province in Canada for the bottom two tax brackets. Keeping these tax rates low is consistent with the objective of maintaining a fair and competitive tax system that encourages investment and innovation.

Personal income tax (top bracket): Comparison of provincial top marginal personal income tax rates is a key component in the decision-making processes of investors, in choosing where to invest, and firms in choosing where to locate.

An important mechanism to promote investment and innovation in the province is the creation of an efficient and effective regulatory and policy framework. Unnecessary regulatory requirements increase the cost of doing business in the province resulting in wasted time and effort for both individuals and businesses. Conversely, streamlined legislative and policy frameworks supported by the electronic delivery of services can achieve the same outcomes while acting as a driver for further business development and investment and continuing to foster consumer confidence.

Key strategies include implementing the new legislative frameworks for streamlined financial and corporate sector regulation, updating the legislative and policy frameworks to reduce regulatory requirements and expansion of electronic service delivery initiatives.

Performance Measure:

Number of regulatory requirements: An important indicator of the overall regulatory burden on business is the number of regulatory requirements. Reducing red tape by eliminating unnecessary regulations improves the competitiveness of British Columbia's business environment and contributes to its economic growth.

Annual growth in business registrations: Increases in the number of businesses operating in the province is an indicator of the government's success in creating a tax and regulatory climate that stimulates economic growth.

Company incorporations and registrations filed electronically: The transfer of paper-based company incorporations and registrations to electronic self-service over the Internet improves customer service at reduced costs. Registering parties are able to complete their transactions when they require them, pay for the service, and obtain confirmation all in real time.

The Ministry of Finance is responsible for government's overall financial and risk management framework. This involves the establishment of appropriate legislation, policies and procedures and reporting at a corporate level to ensure the province's resources and obligations are appropriately managed in support of effective service delivery. This framework reinforces individual and corporate accountabilities for outcomes, maintains standards for stewardship of resources, management of liabilities and risk, and the collection and disbursement of public funds.

Key activities include financial, procurement and accounting policy development, internal audit and advisory services, risk management, and compliance monitoring.

In 2004/05, government managed cash flows of approximately $100 billion. During the same year, debt service cost for the total provincial debt was $2.1 billion. Of this amount, $691 million relates to the Management of Public Funds and Debt vote (central government operating debt). Ongoing improvement in the management of these cash and debt activities offers significant opportunities to reduce costs and redirect government resources to priority services.

Key strategies include: comprehensive support for credit rating analysis and investor relations activities; development of models and systems to maximize investment returns on surplus cash to minimize borrowing costs and requirements; management of the provincial debt portfolio within risk policy parameters set by the Ministry of Finance Risk Committee; negotiation of banking services for government as a whole and utilization of technological advancements (e.g., e-banking services) to create financial and administrative efficiencies and savings within ministries.

Performance Measures:

Debt services costs: A relatively low ratio of taxpayer-supported debt service cost to taxpayer supported revenues or "interest bite" demonstrates fiscal prudence and an affordable debt burden. Rating agencies rely on this measure as one among a number of important credit rating considerations.

Creation of risk-based frameworks that reinforce individual and corporate accountabilities provides opportunities to reduce unnecessary constraints, realize efficiencies and improve outcomes. Risk-based practices are adopted only if they can demonstrate consistency with government priorities and add value using an optimal mix of resources and funding.

Key strategies include expansion of government's self-insurance program to the broader public sector, assistance with implementation of Enterprise-wide Risk Management practices, risk-based audit planning and oversight of a comprehensive post-payment review system targeting high-risk transactions.

Performance Measures:

Annual savings from self-insurance: The Ministry of Finance's coordination of public sector self-insurance programs allows the provincial government to cost-effectively retain selected risks rather than transfer them at a premium to third parties. Self-insurance involves government assuming the role of a traditional insurer by investigating, defending and paying claims.

Post-payment monitoring and Internal Audit savings: The ministry's delivery of cross-government risk-based financial processing and independent management review services provide a basis for evaluating its adoption of best practices and savings.

Risk Management Maturity: The ministry is in the third year of an initiative to integrate Enterprise-wide Risk Management into its operational and decision-making activities. The risk maturity model is a standardized cross-government tool that explores the ministry's organizational philosophy and culture; risk management leadership and commitment; integration with other management practices and systems; risk management capabilities and reporting and control processes.

Government is undergoing transition to a model that provides program managers with enhanced financial and procurement decision-making abilities. This shift provides managers with additional tools to succeed and is supported by an update of traditional public sector management frameworks. The ministry plays an important role in the development of these governance frameworks and works closely with other ministries to ensure appropriate clarification of roles, responsibilities and accountabilities.

Key strategies include a review of financial and procurement legislation, maintenance of a principles-based policy framework, input into the development of training resources as well as ongoing monitoring and reporting on ministries' compliance with the accountability frameworks.

Performance Measure:

Stakeholders' satisfaction with the policy framework: Ensuring that the policy framework provides sufficient guidance to managers while avoiding an overly prescriptive approach is essential. Accordingly, survey results from managers and other stakeholders provide information on the framework's effectiveness, the quality of its implementation and opportunities for improvement.

Performance Measure:

Percentage of responses to ministerial correspondence completed within two weeks: Achieving the ministry standard of completing minister's correspondence within a two-week period ensures correspondents receive timely and relevant information.

The Budget Transparency and Accountability Act (BTAA) requires that all provincial budgets comply with Generally Accepted Accounting Principles (GAAP). Adherence to GAAP requires monitoring of evolving accounting standards, consistent financial practices across government and full transparency for the use of public funds. This transparency is critical for ensuring that British Columbians and the investment community have the information they need to make informed decisions and confidence in government's finances.

Key strategies include ongoing monitoring of, and adherence to, GAAP's evolving accounting standards, adoption of technology to improve the reporting processes and greater fiscal planning integration with the SUCH sector.

Performance Measures:

Full Implementation of GAAP: Implementation of GAAP meets a legislated requirement in the Budget Transparency and Accountability Act, and improves the accuracy, consistency and timeliness of the province's financial information.

Delivery date for annual Public Accounts: Timely release of financial reporting is critical for effective use of the information and helps instill public confidence in government's ability to manage its resources. The Budget Transparency and Accountability Act requires release of the province's financial statements (Public Accounts) by August 31st, following each March 31st, fiscal year end.

The ministry recognizes its dependence upon the continued support and professionalism of our highly-skilled and knowledgeable workforce. Ultimately, it is our staff that drives the quality and value of the services we provide to our clients, stakeholders and the people of British Columbia. Over the coming years, the ministry will pursue additional opportunities to provide its employees with the support, recognition and opportunities required.

The ministry works closely with its staff throughout the year to provide them with information on strategic priorities and how their work contributes to the success of the organization overall. Staff have reaffirmed that this communication clarifies expected results, supports organizational improvement and provides greater job satisfaction.

Key strategies include regularly scheduled Community Conversations involving all members of the ministry, employee participation in ministry human resource planning initiatives, integration of planning processes and ongoing reviews of the linkages between the Service Plan and operational activities. The ministry is also working to develop personal Employee Performance and Development Plans (EPDP) tailored to the position and developmental interests of each employee.

Performance Measure:

Performance Review and Employee Performance and Development Plans: EPDPs provide an important linkage between the activities of individuals, their business unit and the ministry as a whole. Identifying performance expectations within EPDPs also supports greater accountability and improves communication between staff and supervisors.

Government's move to a model focused on flexibility, evidence-based risk taking, and accountability for results, requires the support of a knowledgeable and innovate workforce. Members of the ministry have embraced this shift and have fostered a culture characterized by performance and receptiveness to change. In order to build upon our past success, the ministry will actively encourage the development of new skills based on formal and non-traditional learning opportunities and mutual trust.

Key strategies include: identification of critical competencies and targeted skill sets; improved communication of, and access to, developmental opportunities (internship programs, career pathing, mentoring, rewards and recognition programs, development opportunities and critical skills training); and flexibility in accommodating interested staff.

Performance Measure:

Staff learning and development opportunities: The ministry is undertaking a comprehensive staff attraction and retention initiative. This initiative will ensure that the ministry has the necessary skill sets to support its activities in an increasingly complex environment. Providing staff with additional learning and development opportunities will position the ministry as an important professional development opportunity, benefit our employees and enhance the quality of our services.