John Reynolds
M.L.A West Vancouver-Howe Sound

Full Service for your money: that's what
you expect as a taxpayer from
government. Fact is, British Colurnbians
receive the most service per tax dollar in
Canada. Indeed, British Columbia spends
more of its budget on social programs than
any province in Canada, because we
spend the least on government purpose

ai 2 As Chart 1
shows, this
year the
Province will

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budgeted just on health care, education
and social services. Fully one-third of the
budget, or 33 cents of every dollar, will be
devoted solely to health care. This year's
health budget will exceed $5.5 billion, an
increase of 50% since 1986. Another 27
Chart 1

Total Expenditure 1991-1992

Debt
Other Servicing
Expenditures 4%
- 24%

Socia :

Services . :
12% Education and
Advanced Education
27%

HEALTH
33%

cents of every dollar spent will be
dedicated to education, for a total of $4.5
billion. That represents an 83% increase
for elementary and secondary education
funding and a 60% boost for advanced
education, training and technology since
1986. No government in Canada spends
as much of its budget on education as we
do right here in B.C.

With 72% of all spending decicated to
health, education and social services, only
28% remains for all the other services and
programs that government provides. So
the less spent on interest payments to the
banks, the better.

Chart 2 highlights the relative amount
each province must spend of every dollar
collected simply to pay for borrowing
charges on government debt. British
Columbia's debt costs are less than half as
much as any other province's. Similarly,
Chart 3 shows that we have the lowest
direct government debt of any province,
measured as a percentage of *Gross
Domestic Product (the total value of goods
and services produced). As such, B.C.
has the most “affordable” debt in Canada,

WORKING FOR A
STRONGER
TOMORROW

Social Credit Management:
The most service per dollar of any
goverment in Canada.

which also means that our social programs
are more affordable, and therefore more
secure over the long term.

Make no
mistake, it's not
#3, Only unfair to
3% borrow today
¥e6 from tomorrow's
: ws =" taxpayers, it's
also unwise and irresponsible.
When the debt grows too high, as we see
in Ontario, the cost of borrowing grows
beyond control. More money each year is
gobbied up in debt costs, which forces the
government to borrow even more money
just to maintain government service levels.
Eventually, the government is forced
deeper and deeper in debt just to pay for
its borrowing charges. It's like using your
credit card to meet your minimum monthly
payments -- a vicious circle our
government rejects -- because in the end,
taxpayers always come out the losers.
Chart 2

Debt Servicing Costs per Dollar of Revenue
As at March 31, 1992

——1|
4 Tm)

Ont, Que. FE), Sesh. ten, WB. NS. Rfid.
Sources: 1991/92 Budgets

We believe your
tax contributions
should be
managed to
provide services
for people, not
wasted on
needless borrowing costs. Chart 4 shows
that British Columbia's education spending
surpasses ail other provinces’, as a
percentage of total government
expenditures. What other provinces have
been forced to pay to the banks for
increased debt, we have instead dedicated
to improving services for people, especially
education and health care.
Chart 3
Net Direct Debt as Percent of GDP
As at March 31, 1992

Govt.

Sources: 1991/92 Budgets, B.C. Ministry of Finance and Corporate
Retations, Conterence Board ol Canada

Education Expenditures as a Percentage of
Total Government Expenditures

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vonr tva8 tne had
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Hoteenate

Source: Dominion Bond Rating Serce, Feb 25, 199!

The surest way to keep taxes down is to
keep government spending in ‘ine with
government revenue. A favorable
comparison could generally be made with
any pi->.‘ince, because British Columbia's
revenue structure is about the fairest, most
balanced plan in Canada. In fact, overall,
B.C. nas the second lowest taxes in

% Responsible
2 government, ina
¢ nutshell, starts

@ responsible
approach to
fiscal

management. British Columbia is the clear
leader in Canada on that account. We
have produced balanced budgets over the
past two years and minimized needless
borrowing. The result is that B.C. now has
the best financial picture and the top credit

rating in Canada
Chan §

Per Capita Direct Debt for Government Purposes
As at March 31, 1992

B.C. P.EJ Ata. N.B. Que. Man. Sask. Ont. N.S. Nid.
Source: 1991 B.C, Budget

As Chart 5 illustrates, British Columbians
have the lowest per capita direct
government debt in the nation. Because
our finances are in the best shape in
Canada, British Columbians receive the
most service per dollar, which means lower
taxes in the long terin and a higher quality
cf life for all British Columbians.

West Vancouver Howe Sound
Constituency Office

112 2419 Bellevue

West Vancouver, V7V 4T4

922-6722