Report B: FISCAL REVIEW AND OUTLOOK

TOPIC BOX
SUMMARY FINANCIAL STATEMENT

SUMMARY FINANCIAL STATEMENT

Commencing with the 1995/96 budget, the government has presented a financial statement that combines the estimated annual surplus or deficit of government ministries and special offices (the consolidated revenue fund) with the estimated annual surplus or deficit of Crown entities. This summary financial statement is prepared on a basis consistent with the government's accounting policies, as approved by Treasury Board, which are applied in the preparation of the audited Summary Statement Public Accounts.

The forecast summary deficit for 1998/99 is $321 million higher than the restated budget estimate. (The restatement is to reflect the change in accounting policy for highway infrastructure — see note 1 below). The increase was primarily due to higher-than-expected deficits of the CRF and Forest Renewal BC; lower profits of British Columbia Hydro and British Columbia Lottery Corporation; partially offset by improvements in the Insurance Corporation of British Columbia.

The summary deficit for 1999/00 shows an increase of $371 million from the 1998/99 revised forecast. The increase is primarily due to an increase in the CRF deficit. Other significant changes reflect a decrease in the estimated loss of Forest Renewal BC; a lower amount of accounting policy adjustments; offset by the transfer to the CRF of previous and expected profits, and proceeds from asset dispositions realized by the British Columbia Buildings Corporation.


1998/99
Budget
Estimate
1998/99
Restated
Budget
Estimate1
1998/99
Revised
Forecast
1999/20
Budget
Estimate
($ millions)
Consolidated Revenue Fund (CRF) Surplus (Deficit) (95)   (95)   (544)   (890)  
       
Taxpayer-supported Crown
Corporation & Agencies:
  Net earnings (losses) (330)   (330)   (309)   (190)3
  Less Contributions included in CRF Revenue (111)   (111)   (45)   (246)  
  Accounting policy and other adjustments (412)   (300)   (383)4 (249)5
       
  Net adjustment to CRF (853)   (741)   (737)   (685)  
       
Commercial Crown Corporations
and Agencies:
2
  Net earnings (losses) 1,463   1,463   1,487   1,481  
  Less Contributions included in CRF Revenue (1,464)   (1,464)   (1,364)   (1,435)  
       
  Net adjustment to CRF (1)   (1)   123   46  
       
Summary Financial Statement Surplus (Deficit) (949)   (837)   (1,158)   (1,529)  
       
 
1 The restatement reflects the change in accounting policy to capitalize and amortize over time, the cost of highway infrastructure. The previous policy was to expense those costs in the year the expenditure was made. This change in policy, which is supported by the Auditor General, has been applied in the 1998/99 Revised Forecast and in the 1999/00 Budget Estimates.
2 Represents, primarily, earnings of the British Columbia Lottery Corporation, British Columbia Liquor Distribution Branch, British Columbia Hydro and Power Authority, and British Columbia Railway Company.
3 Represents, primarily, estimated net losses of Forest Renewal BC ($243 million) and the British Columbia Ferry Corporation ($51 million) less the estimated net profit of British Columbia Buildings Corporation ($75 million).
4 Includes $80 million for the estimated write-off of the difference between the debt and the net book value of the British Columbia Transit assets transferred to the Greater Vancouver Transportation Authority.
5 Represents the amortization of highway infrastructure expenditures.

 

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Copyright 1999: Queen’s Printer, Victoria, British Columbia, Canada