2002/03 Annual Service Plan Report Ministry of Finance

Year-at-a-Glance Highlights

Over the past year the Ministry of Finance has made significant progress in implementing New Era commitments and meeting government's goals: a strong, vibrant provincial economy with a supportive social infrastructure, and safe, healthy communities and a sustainable environment. The ministry's achievements in 2002/03 include:

• The government's fiscal plan is on track and ahead of schedule.
• Year-end provincial deficit was $3.169 billion, or 28 per cent lower than forecast in Budget 2002.
• Savings from lower debt costs and ministry under spending were redirected to priority initiatives such as forestry restructuring, health care and education.
• The $750 million forecast allowance put in place to manage risks associated with unforeseen circumstances was not needed.
• About half of the $210 million contingencies vote remains unspent.
• The transition to full implementation of Generally Accepted Accounting Principles (GAAP) by 2004/05 is on track.
• Revised the Estimates to provide stronger linkages to outputs and outcomes in the Service Plan.
• Worked with the Office of the Auditor General and the independent Accounting Policy Advisory Committee to determine the government reporting entity under GAAP.
• The Public Sector Accounting Board's reporting model changed, which confirmed British Columbia's expense-based reporting.
• Significant progress was made in rebuilding the province's economy by putting in place a competitive tax structure, reducing regulation and improving infrastructure.
• Small business tax rate threshold increased to $300,000 from $200,000.
• Implemented a new Business Corporations Act to streamline the establishment and operation of business in the province.
• Implemented new capital management framework and established Partnerships British Columbia to encourage Public/Private partnerships to improve health care, education and transportation infrastructure.
• Improved accountability and financial reporting.
• First ever three-year service plans for ministries and Crown corporations were released with Budget 2002.
• New Auditor General Act passed.
• 2001/02 Public Accounts were released ahead of target and earlier than eight other provinces.
• Progress was made in implementing public sector compensation plans that are affordable and reflect the reality of the province's economic and fiscal circumstances.
• Significant collective agreements were achieved with British Columbia Hydro and four of the province's universities.

Performance Summary

The following table outlines the ministry's success in achieving the performance measures established when Service Plan 2002/03 – 2004/05 was issued in February 2002. In summary, the ministry met the performance target in 11 areas and fell short of its objectives in four areas.

See the Performance Measurement section for detailed information on performance measures.