FACTS: Did you know?
Balancing the Budget by Controlling Spending
In both difficult economic times and financial booms, a government must live within its means. Through prudent and controlled spending, BC is on track to balance our provincial government’s budget in 2013.
From 2005 – 2008, when the world’s economy was strong, government spending in BC grew nearly 6% each year. When the global economy worsened dramatically in 2008, BC government spending was scaled back, quickly. It’s simply common sense: just like a household, you can’t spend more money than you make.
If a BC resident is saddled with debt, it may affect their credit rating. The same thing happens to provincial and national governments. Greece, Spain and Ireland are examples of countries deeply in debt that now have poor credit ratings.
However, through sensible, responsive fiscal management, British Columbia has retained its current AAA-rating with both Standard & Poor’s and Moody’s – the two most authoritative economic advising agencies in the world. In short, both of these global advisers say that BC’s economy is stable, growing and a good place for international investment.
Why? Prudent fiscal and economic management is just one reason. BC also has lower debt and lower costs for borrowing. To help our skilled, experienced work force remain in BC, the province looks at – and uses carefully – the tax dollars that fund health care, education and all the other measures that make BC a great place to live.