Strategic Context
Provincial Economy
British Columbia's real GDP grew by a solid 3.5 per cent in 2005, slightly faster than the 3.4 per cent growth rate forecast in the September Budget Update. Strong consumer spending and investment helped make B.C.'s growth the second fastest in the country, behind Alberta's 4.5 per cent expansion. B.C.'s economic growth was accompanied by a marked drop in the unemployment rate and strong labour income growth, supporting robust consumer spending and residential construction growth.
Further information on the B.C. financial and economic outlook may be found in the Budget and Three-Year Fiscal Plan released with the February Budget.
External Factors
| Risk | Mitigation |
|---|---|
| Globalization of economic and financial markets will increase competition for investment. |
Develop taxation and financial and corporate regulatory policy, which reinforces British Columbia's position as an attractive place to invest and create jobs.
Build upon the Province's strong fiscal and economic record by maintaining at least a Aa1 credit rating (second highest available), and continue to employ an investor relations program to ensure the domestic and international financial community is fully apprised. |
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Economic shocks and commodity price fluctuations (e.g., natural gas and oil prices, rapid appreciation of the Canadian dollar, the mountain pine beetle infestation, forest fires, labour shortages, booming construction markets and trade disputes such as softwood lumber) could affect forest revenues, personal and corporation income taxes and other revenues as well as increase government expenditures. |
Use prudent assumptions in the preparation of the budget. |
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The legislated implementation of Generally Accepted Accounting Principles (GAAP) means that the Province will need to continue to keep up with the most recent accounting standards, which are set by the independent national Public Sector Accounting Board. |
Continue to work closely with the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants, the Auditor General of British Columbia and the Accounting Policy Advisory Committee on early identification of accounting issues and develop a strategy to appropriately implement GAAP. |
Internal Factors
| Risk | Mitigation |
|---|---|
| An aging workforce presents significant succession and recruitment challenges. |
Continue to support staff professional and career development, including tailored development programs; training courses; employee exchange programs; mentoring programs; and Employee Performance and Development Plans for all employees.
Continue to implement recruitment and retention plans, including marketing of interesting and progressive career opportunities; university outreach; partnering with institutions and financial communities; continuing the Graduate Development Program; recognition programs; career planning; and flexible work arrangements. |
| Opportunity | Initiative |
|---|---|
| Technological innovations provide opportunities for greater efficiencies and productivity. |
Systematic reviews of existing and future information management systems to realize economies of scale, reduced duplication and cost savings. |
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The Government of British Columbia has adopted Enterprise-wide Risk Management as the framework for strategic and operational decision-making to effectively manage potential opportunities and adverse effects. |
Continue to integrate Enterprise-wide Risk Management practices into ministry's operational and decision-making activities including the development of the service plan and audit plan. |
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The ministry's Integrated Planning Framework consolidates and streamlines the various planning activities, enhancing the ministry's resource capacity. |
Apply the Integrated Planning Framework to the ministry's operational planning activities.
Continuously seek opportunities to improve efficiencies in planning activities. |
Linkage to the Five Great Goals
The Ministry of Finance contributes to the Five Great Goals by creating a sustainable fiscal environment and supporting a strong and vibrant economy that attracts investment, creates jobs, and provides government with the means to address its education, health, support system and environmental sustainability priorities as set out in the following Five Great Goals:
- Make British Columbia the best-educated, most literate jurisdiction on the continent.
- Lead the way in North America in healthy living and physical fitness.
- Build the best system of support in Canada for persons with disabilities, those with special needs, children at risk, and seniors.
- Lead the world in sustainable environmental management, with the best air and water quality, and the best fisheries management, bar none.
- Create more jobs per capita than anywhere else in Canada.
Cross Ministry Initiatives
The ministry plays an integral role in multiple cross ministry initiatives through its overarching fiscal, economic and governance responsibilities. Major cross ministry initiatives include:
Public sector negotiating framework
- Establish appropriate and sustainable compensation levels.
2010 Olympic and Paralympic Winter Games
- Provide support to the Ministry of Economic Development by:
a) Providing support to the Olympic Games Secretariat to assist with implementation and ongoing management of appropriate risk management systems.
b) Acting as the primary contact with the Auditor General, assist with issue identification, and management and resolution of accounting and audit items.
c) Assisting ministries and Crown agencies to ensure they have appropriate business continuity plans to support their involvement in the Games.
