Ministry of Finance and Corporate Relations Honourable Andrew Petter, Minister

Jobs Strategy for B.C.

A jobs strategy will support the creation of 40,000 new jobs this year, building on the best job creation record in Canada. The strategy includes:

• Investing $1 billion in schools, hospitals and transportation infrastructure to create more than 13,000 jobs.

• 12,000 new jobs for young people through a $23-million Guarantee for Youth program.

• Creating a new agency to promote tourism in partnership with the tourism industry.

• Promoting airline industry competitiveness, attracting new carriers and jobs by a phased-in reduction to the international jet fuel tax rate.

• Encouraging small business job creation by continuing the income tax cut and the income tax holiday for eligible new small businesses -- reducing costs by $29 million.

• Working with B.C.'s film industry to expand opportunities and encourage Canadian productions.

• Developing Fisheries Renewal BC to reinvest profits, protect the fish resource and protect jobs.

• Replacing welfare with training for young people through the $20-million YouthWorks initiative, which will help 40,000 youth this year.

Protecting Health Care and Education

• Health care is protected with an increase of more than $300 million to fund hospitals, physician services and to reduce surgery wait lists.

• Education is protected with a $63 million increase in the K-12 school system.

• $300 million to build and improve public schools.

• 2,900 new spaces for students at universities and colleges.

• Tuition freeze is maintained to help B.C. students.

Tax Cuts and Rate Freezes for B.C. Families

Working British Columbians get help to make ends meet.

• Provincial income tax rate will be reduced another two per cent this year, building on the two-per-cent cut last year -- more than $142 million annually for B.C. families.

• The BC Family Bonus will provide $235 million in support for more than 200,000 lower- and modest-income families.

• ICBC premiums, BC Hydro rates and post-secondary tuition fees remain frozen.

• Tax cuts and rate freezes mean the average B.C. family saves up to $700.

A Financial Management Plan

Spending drops for the first time since 1958

• In 1997/98, the province will spend $100 million less than last year -- the first decline on a year-to-year basis since 1958.

  Deficit halved to smallest this decade

• 1997/98 projected deficit is $185 million -- less than one-half the size of last year's.

• Revenue is projected at $20.286 billion, while expenditures are estimated at $20.471 billion.

  Prudent economic assumptions

• While B.C.'s economy is forecast to grow 2.2 per cent, the budget's revenue forecast is based on a prudent forecast of 1.6 per cent growth.

B.C.'s finances on a sound footing for the future

The budget includes a financial management plan to:

• Reduce this year's deficit to the smallest this decade.

• Balance the budget in 1998/99 and achieve a surplus in 1999/2000.

• Set capital spending at $1.1 billion annually for the next three years.

• Cut B.C.'s debt ratio to 20 per cent of GDP in three years and reduce it to 15 per cent by 2015, as recommended by a private sector advisory group.

• Keep B.C.'s debt servicing costs, now at 8 cents of every revenue dollar, among the lowest in Canada.

BC Ministry of Finance and Corporate Relations

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