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Finance Business Plan
2003-06
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If you would prefer to download this document as a pdf file, Click Here.TABLE OF CONTENTS
ACCOUNTABILITY STATEMENT This Business Plan for the three years commencing April 1, 2003 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 March 19, 2003 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. [original signed] Patricia L. Nelson, Minister of Finance
The ministry The Ministry of Finance includes the
Department of Finance, the Alberta Capital Finance Authority (formerly Alberta Municipal Financing
Corporation), Alberta Pensions Administration Corporation, ATB Financial (Alberta Treasury
Branches), the Alberta Insurance Council, and the Credit Union Deposit Guarantee Corporation and its subsidiaries. The Ministry of Finance also includes the activities of a number of companies in wind-up.
vision A province that is innovative and globally competitive with a fiscally sustainable and accountable government.
Develop and implement the government’s fiscal framework and financial policies.
Fiscal Planning and Financial Management
Regulation of Provincial Financial Institutions
Pensions Policy, Regulation and Administration
Financial Services
GOALS, STRATEGIES AND PERFORMANCE MEASURES GOAL ONE: A Financially Strong, Sustainable and Accountable Government What it means Maintaining Alberta’s strong financial position requires the government to keep the budget on a sustainable course for the future. Strategic fiscal planning and prudent economic forecasting are required to meet today’s priorities and to sustain essential programs and services over the longer term. The government will continue to balance the budget every year in accordance with the Financial Management Commission (FMC) framework and to reduce the province’s existing debt as scheduled. The Government Accountability Act is the government’s legislated commitment to be accountable to Albertans. It requires that the government publish three-year consolidated fiscal plans, quarterly fiscal updates and annual performance reports including audited financial statements. Key Strategies
Performance Measures
GOAL TWO: A Fair and Competitive Provincial Tax System What it means Taxes are necessary to provide the revenue that government needs to fund its programs and services. The tax system must be fair and promote self-reliance. Our taxes must also be competitive with those in other provinces and other countries with which Alberta competes. This attracts the investments, jobs and skilled workers necessary to keep our economy performing well. On January 1, 2001, Alberta introduced a single rate personal income tax of 10% and by far the highest personal and spousal exemptions in Canada. On April 1, 2001 Alberta began implementing its plan to reduce corporate income taxes. Alberta remains the only province without a retail sales tax. Key Strategies
Performance Measures
What it means The Government of Alberta has annual cash flows nearing $300 billion. These cash flows must be managed to optimize returns and to ensure cash availability to meet Alberta’s obligations. In addition, the Minister of Finance is responsible for managing several billion dollars in liabilities as well as certain assets. Through prudent management of the liabilities and assets, the Ministry endeavors to minimize debt service costs and maximize investment returns. The complexity of the entire government enterprise gives rise to many potential risks. Identification and management of these risks across government was identified by the Financial Management Commission (FMC) as an important issue. The recommendations of the FMC regarding alternate forms of capital financing may have major implications. Key Strategies
Performance Measures
What it means To foster confidence, Alberta’s regulatory environment for financial services must be fair and efficient to encourage the availability of comprehensive, reliable and competitive products and services. Financial service providers are responsible for ensuring that Albertans receive fair value for the services they have purchased. Alberta Finance sets the legislative and regulatory framework, and with its delegated regulatory organizations, regulates the credit union, insurance, loan and trust industries in Alberta, in the interests of depositors, insurance policy holders, investors, insurance intermediaries and the companies themselves. Together, this competition and oversight leads to a financial sector marketplace in which Albertans can have confidence. Key Strategies
Performance Measures
What it means Pension Plan members need to be assured that their benefits are secure. Employers and other plan sponsors need to know that pension regulation is fair and even-handed. The Superintendent of Pensions focuses on assessing private sector plan compliance with legislative standards and ensuring that ‘at risk’ plans take action to comply with regulations. The Minister of Finance is the trustee of most of Alberta public pension plan assets. The department provides advice to the Finance Minister on the soundness of the public plans and governance arrangements. Alberta Pensions Administration Corporation (APA) provides administration services and member benefit and contribution calculations. Key Strategies
Performance Measures
What it means Alberta’s dynamic economy and entrepreneurial spirit requires readily accessible and technologically advanced financial services and products. ATB Financial (Alberta Treasury Branches) and the Alberta Capital Finance Authority (ACFA) are key components of the financial servicing sector. ATB Financial is a full-service financial institution providing services to individuals, small businesses, the commercial and energy sectors, and the agri-industry in 240 communities in Alberta, through the largest branch network of any financial services provider in the province. ACFA provides financing to a variety of local authorities (municipalities, towns, counties, hospitals, schools and post-secondary institutions) throughout the province for capital projects. The province’s triple A credit rating allows ACFA to pass along low borrowing costs to its clients. Key Strategies
Performance Measures
Maintaining a strong and sustainable financial position faces future challenges. The Kyoto Protocol on greenhouse gases and the lack of clarity by the federal government on implementation have the potential to be costly to the Alberta and Canadian economies. The continued decline of high royalty rate conventional oil revenues will need to be replaced in the long term. Wage pressures in health and education add to base spending and create long-term funding pressures. Health sustainability is a particular concern given an ageing population, technological improvements and public expectations. If world capital markets stay weak for an extended period of time, funding pressures will be placed on pension plans. The new Sustainability Fund will help manage risks from energy and other revenues, and disasters and emergencies.
linkage to the government business plan Alberta Finance links to the Government Business Plan are primarily to a financially stable, open and accountable government and a strong intergovernmental position in Canada (Goal 9) and the goal to have a prosperous economy (Goal 7). As well, Finance links to the government’s goals of an effective, responsive and well-managed local government sector (Goal 6) and Aboriginal Communities will be effective and self-reliant (Goal 5).
MINISTRY STATEMENT Of OPERATIONS
CONSOLIDATED NET OPERATING RESULT
Go to: Gaming Business Plan 2003-06
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