Alberta Finance - Budget 2002 - Alberta Finance Business Plan 2002-05

This Business Plan for the three years commencing April 1, 2002 was prepared under my direction in accordance with the Government Accountability Act and the government’s accounting policies. All of the government’s policy decisions as at February 26, 2002 with material economic or fiscal implications of which I am aware have been considered in preparing the Business Plan.

The Ministry’s priorities outlined in the Business Plan were developed in the context of the government’s business and fiscal plans. I am committed to achieving the planned results laid out in this Business Plan.

Note: In addition to the Finance Department, the Ministry of Finance includes the activities of Alberta Government Telephones Commission and its subsidiaries, Alberta Insurance Council, Alberta Municipal Financing Corporation, Alberta Pensions Administration Corporation, Alberta Treasury Branches and its subsidiary ATB Investment Services Inc., and the Credit Union Deposit Guarantee Corporation and its subsidiaries. Additional details for the larger organizations are contained in the supplementary information to the Ministry Plan.

Link to Government Business Plan:
Goal 4 Albertans will be independent.
Goal 12 Alberta will have a financially stable, open and accountable government.
Goal 19 Alberta will work with other governments and maintain its strong position in Canada.

STRATEGIES/OUTPUTS	OUTCOMES	PERFORMANCE MEASURES/TARGETS
Pay down the Province's accumulated debt in accordance with the Fiscal Responsibility Act. Establish a prudent economic cushion in the fiscal plan as required under the Fiscal Responsibility Act. Plan for a debt free Alberta. Review and develop government policies on business planning and budgeting and economic, tax and fiscal policies, including prudent forecasts of fiscal and economic conditions. In co-operation with Executive Council, co-ordinate an overall government business plan, including key government-wide performance measures. Develop and communicate common economic and financial assumptions for business planning across government. Monitor achievement of the fiscal plan and business plans. In consultation with ministries and ACSC (when appropriate), establish and refine standards, policies and guidelines that continue to improve government business planning, financial administration and financial and performance reporting.	Financial plans and policies that ensure Alberta's finances are well managed. The Province's finances are in order and the debt burden for Albertans is eliminated. The government fiscal plan is integrated with the business plans. Ministry business plans and related performance measures are congruent with, and linked to, the overall government business plan and government performance measures.	Performance Measure: Accumulated Debt Reduction Target: Milestones as identified in the Fiscal Responsibility Act. Performance Measure: Alberta's credit rating Target: Best among the provinces; and Domestic debt rated AAA.
Develop Alberta's position on federal-provincial fiscal arrangements and, in conjunction with the other provinces, present that position to the federal government.	Sustainable federal funding for Alberta's social programs. The Canada Health and Social Transfer (CHST) remains the primary mechanism for health and social transfers.	Performance Measure: Amount of the Canada Health and Social Transfer payments Targets: Restoration of federal funding through the CHST to at least 18% of provincial expenditures on health and social programs and introduction of an appropriate escalator. All new CHST funding to be equal to those of all other provinces on a per capita basis. The existing CHST cash transfer made equal to those of all other provinces on a per capita basis.
Work with the federal government and the other provinces to ensure the sustainability of the Canada Pension Plan.	A Canada Pension Plan that has a sound governance structure, is affordable and viable over the long term and has public confidence.	Performance Measure: Legislative Amendments to the Canada Pension Plan Act Target: Agreement by Finance Ministers on legislative amendments at the end of the next renewal period (December 2002).
In consultation with public sector pension boards and stakeholders, facilitate the development of new pension governance frameworks including efficient management of boards' requests for policy changes.	More appropriate, effective and accountable public sector pension plan governance that is sound enough to withstand events that may arise over the life of the plan. Less day-to-day involvement of the government in public sector pension plan decisions.	Performance Measure: Improved pension governance frameworks Target: Separation of sponsor (policy making) and trustee (administrative) functions. Mechanism exists for transparent accountability. Parties exposed to financial risk are directly involved.

Link to Government Business Plan:
Goal 12 Alberta will have a financially stable, open and accountable government.

STRATEGIES/OUTPUTS

OUTCOMES

PERFORMANCE MEASURES/TARGETS

Continue to develop a three-year fiscal and business plan for the government as part of the annual budget.
Continue to report to Albertans quarterly and annually, with financial and non-financial results as well as overall financial position.

Public understanding of the government's performance and financial position.

Communication of clear, understandable and reliable information to the public.

Performance Measure: Percentage of Albertans aware of government's financial performance in the past year

Target:
80% of Albertans aware.

Continue to work with ministries to refine ministry responsibility and accountability for financial management, including the reporting of results and business outcomes at the ministry level.

Ministries responsible and accountable for their internal financial management.

Performance Measure:
Satisfaction of deputy heads with the government's accountability system

Target:
All satisfied or very satisfied.

Link to Government Business Plan:
Goal 7 Alberta will have a prosperous economy.

Link to Government Business Plan:
Goal 12 Alberta will have a financially stable, open and accountable government.

Accumulated Debt is an indicator of the financial strength of the Province and the long-term performance of the government. It is compared against the targets set out in the Fiscal Responsibility Act and includes the outstanding consolidated debt of the General Revenue Fund, the debt of the Alberta Social Housing Corporation and the government's liability for school construction debt.

This measures the portion of Albertans aware of the government’s financial performance in the past year. The target is 80% of Albertans.

This measure compares typical taxes, including provincial income, sales, payroll, fuel and tobacco taxes (excluding federal taxes), and health care insurance premiums payable by a family with two children earning $30,000, $60,000 and $100,000. The target is to have the lowest provincial tax load for a family of four in Canada.

This measure compares provincial tax load on businesses and includes business income taxes, capital taxes, and insurance corporation taxes. The target is to have the lowest provincial tax load on businesses in Canada.

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