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Performance Indicator 4: Debt

Where BC Ranks, Provincial Comparison

Year

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

Rank

2

2

3

2

2

2

2

2

3

Performance Indicator Four tracks government direct debt plus the debt of dependent Crown Corporations and agencies. Lower debt burdens earn better ranks.

In 2008/09, BC placed third. Alberta ranked first, having eliminated its debt, while Saskatchewan moved into second place.

British Columbia's taxpayer-supported debt-to-GDP ratio was 13.4 percent in 2008/09, down 3.7 percent from 2007/08. Its debt ratio has fallen for six consecutive years.

Why It's Important
Payments to service taxpayer-supported debt can consume a large portion of a jurisdiction's budget, thereby diminishing its capacity to provide public services. The debt burden is also an important indication of a jurisdiction's attractiveness for business investment. A low debt ratio allows a wider range of policy responses to difficult economic times.
Note
The data used in this indicator may not match the BC definition of taxpayer-supported debt due to accounting differences among provinces.

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