PUBLIC ACCOUNTS

2019/20
 Forecast Change to Surplus/Deficit
$ millions

59,326 58,981
59,047 58,894 58,864 Revenue
Expense
58,823 58,660
58,273 58,215 58,216

500 Forecast Allowance

500 500
300 Surplus (Deficit)
274
179 148 203
(321)

Budget 2019 Q1 Q2 Q3 Public Accounts

1
 Budget vs Actual
Surplus /(Deficit)
($ millions) Budget Actual
3,000

2,500

2,000

1,500

1,000

500

-500

15/16 16/17 17/18 18/19 19/20

2
 Changes from Q3 Forecast
Q3 Forecast
Surplus
$203 million

0 2019/20
Annual Deficit
$(321) million

$143

$328 -$313

$ millions
3
 COVID–19 Impacts in 2019/20
 Estimates of impacts on revenues
 Personal income tax $397 million
 Property tax $171 million

 Lower market investment values at March 31st

 ICBC impairment loss $298 million

 Costs related to initial response

 Core government $11 million
 Health authorities $35 million

 Canada Health Transfer received $68 million

4
Tax Year vs Fiscal Year

5
 Fiscal Highlights

• Provincial GDP grew by 2.8%, the third highest rate among provinces and
better than the national average of 1.7%.
• B.C.’s had the lowest unemployment rate in Canada throughout 2019,
averaging 4.7%, unchanged from 2018.
• Taxpayer–supported capital spending of $4.8 billion for improvements in
education, healthcare and other capital projects.
• Taxpayer–supported debt–to–GDP is 15.1%.
• All four major credit rating agencies affirmed BC’s ratings: Standard &
Poor’s: AAA; Moody’s: Aaa; Fitch: AAA; Dominion Bond Rating Service:
AA(high)

6
 Changes from Budget 2019
$ millions $387 million lower revenue $708 million higher program investments
827
591
508
420

-393 -355
-466

-811

Taxation Crown Natural resources Other Health and Natural resource Protection Other
corporations Education and economic expenses
development

7
 2019/20 Revenues
$ millions

15,859

11,484
10,657
9,535

5,011
4,217

1,897

Personal Corporate Consumption Employer health Property taxes Federal All other
income tax income tax taxes tax contributions revenues

Prior year Budget Actual

8
 2019/20 Expenses
• Program Investments increased 6.1%
 Health care improvements of $1,298 million
 Team-based primary care services
 Service expansions for cancer care, diagnostic and treatment care, and care for
families, women and children
 Community supports and other sectors of $897 million
 Community infrastructure and emergency preparedness and response
 Education investments of $645 million
 Supports for educators and students
 Social program investments of $544 million
 Increased the income and disability assistance rates
 Supports for children and families, including supports for affordable childcare
 Affordable housing supports, including supportive housing and homelessness
response strategy 9
Infrastructure Investments of $4.8 billion
Taxpayer supported capital spending, 2019/20
$ millions

Roads, bridges
& public transit,
$1,028
22%
Social housing
agencies, $355 Post-secondary
7% institutions
$936
Ministry & 20%
other capital
$567
12% Health facilities
$1,009
21%
Schools
$877
18%

10
 Total Provincial Debt
72.2
$ billions
65.3 65.9 66.0 46.2
64.9
62.9
60.7 4.6 1.2 42.7
8.0
9.3 42.4
55.8 10.2 36.9
50.2 34.7
9.4
32.6
45.1 7.8 30.9
7.0 28.8
26.9
24.8

26.0
24.4 23.3
22.6 21.3
19.6 21.0
17.6
15.5
13.3

10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20
Self-supported Taxpayer-supported capital Government direct operating 11
 B.C.’s Low Debt-to-GDP Ratio
60%

50%
48.9%

40% 43.6% 43.5%

40.4% 39.3%
37.5%

30% 33.3%

20%
19.7%
15.1%
13.6%
10%

2018 2019 2019 2018 2018 2018 2019 2019 2020 2019
0%
Nfld Que ON PEI NB Man NS Alta BC Sask

Source: Moody’s Investors Services Inc. as at March 31, 2019 unless otherwise noted;
BC result per Ministry of Finance actuals; Moody’s result for BC as at March 31, 2018 were 15.3%. 12
 Debt Affordability

Debt to GDP
17.4

15.1

15/16 16/17 17/18 18/19 19/20

Debt to Revenue
91.3

80.6

15/16 16/17 17/18 18/19 19/20

Taxpayer-supported debt, percent 13

 Audit Opinion
• One reservation remains for 2019/20:
 Deferral of revenue – $5.7 billion

14
 Fiscal Year 2020/21
Economic and Fiscal Update Jul 2020
First Quarterly Report Sep 2020
Budget Process for 2021/22 Fall 2020
Second Quarterly Report Nov 2020
Economic Forecast Council Dec 2020
Budget 2021 Feb 2021
15
PUBLIC ACCOUNTS
2019/20