SLIDE 1

British Columbia

SLIDE 2

Economy

SLIDE 3

2.3

3.7

4.5

3.33.0

2.82.82.92.8

2.4

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Real GDPannual per cent change

BC growth outperforms Canada and the US

Forecast

Sources: Statistics Canada, BC Ministry of Finance

Canada

BC

SLIDE 4

Year-to-Date

Jan – Dec 2007/ Jan – Dec 2006

Employment +3.2

Retail Sales +7.1

Housing Starts +7.6

Building Permits (Non-Residential) +0.2

Mfg Shipments -3.3

Exports -6.5

(annual per cent change)

Domestic economy strong in 2007

SLIDE 5

Other13.4%

US62.1%

Japan13.1%

China4.6%

Other Asia6.8%

OntarioBC

US86.3%

Asia2.2%

Other11.5%

Other6.1%

Asia5.9%

US88.0%

Alberta

25 per cent of BC’s trade is with Asia

Source: BC Stats

Avg annual share of international goods exports by province, 2005-2007

SLIDE 6

1.5

2.0

2.5

3.0

3.5

Jan Mar May July Sept Nov Jan Mar May July Sep Nov Jan

Forecast annual per centchange in US real GDP

Source: Consensus EconomicsThe chart represents forecasts for US real GDP growth in 2007 and 2008 as polled on specific dates. For example, forecasters surveyed on February 11th, 2008 had an average 2008 US growth forecast of 1.6 per cent, while on June 11th, 2007 they forecast 2008 US growth at 2.9 per cent.

2008

20072.2% Feb

1.6% Feb

2006 2007 2008

US outlook deteriorates

SLIDE 7

150

200

250

300

350

400

450

500 SPF 2X4; $US/000 bd ft

Sources: Madison’s Lumber Reporter; Ministry of Finance

1998 2000 2002 2004 2006 2008 2010

Forecast

US$300

Budget 2008

First Quarterly Report 2007

US$213

US$275

2012

Forestry prices remain weak

SLIDE 8

Prudence

SLIDE 9

Prudence remains important

Five levels of prudence maintained in

Budget 2008, for 2008/09:

• Conservative economic assumptions

• $375M in 1% contingency

• $750M forecast allowance

• $50M surplus

• $200M in 5% capital contingency

SLIDE 10

A Budget for Climate Action

SLIDE 11

Revenue neutral carbon tax

784

395

415

255

Carbon tax revenues Tax reductions

Personal income tax reductions

Low income climate action

tax credit

Corporate income tax reductions

Small business corporate income

tax reductions

2008/09 through 2010/11; $ millions

1,8491,849

Every dollar raised by carbon tax is

returned to taxpayers by law

SLIDE 12

$10

$15

$20

$25

$30

2008 2009 2010 2011 2012

Gradual implementation

$/tonne of carbon dioxide equivalent emissions

Revenue neutral carbon tax

SLIDE 13

Revenue neutral carbon tax

$116

$810

$4,531

$0$205

$2,526

Budget 2001 Budget 200844%

reduction

75% reduction

100% reduction

Senior couple $30,000

Individual $20,000

Family of four $70,000

SLIDE 14

Revenue neutral carbon tax

16.5

4.5

11.0

3.5

10.0

2.5

General rate Small Business rate

Budget 2001

Budget 2008

Plan for 2011

(per centof taxable income)

SLIDE 15

Over $1B for climate action

Incentives for business such as:

• Green Ports Initiative

• Biodiesel Production Incentive

• Green Lights Transportation Program

• Venture capital equity tax credit budget increased

SLIDE 16

Building on our economic strengths

• Eliminate corporation capital tax

• Reduce the school tax rate for major

industrial properties

• Extend and enhance film tax credits

SLIDE 17

$0.8

$0.4

$0.8$0.4

$0.8

$1.6

2007/08 2008/09 2009/10 2010/11

Budget 2008 increase $2.9

Ministry of Health Budget

($ billions)

Budget 2007 increase $2.0

$13.0

6.2% $13.8

5.9% $15.4

5.9% $14.6

$2.9B to support health care

SLIDE 18

Debt

SLIDE 19

Taxpayer debt remains affordable

14.4%

20.8%

20.0%

14.1% 14.0% 13.9%

18.2%

20.6%

13.7%

20.6%21.3%

14.0%

16.1%

13.9%14.1%

18.3%20.2% 20.3%

16.2%

14.8%

01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11

Forecast

Annual debt to GDP ratio

3-year moving average

debt to GDP ratio

SLIDE 20

Gross Debt: $37.7 BillionNet Debt: $35.0 BillionEstimated for March 31, 2008

Diversified debt portfolio

Public Cdn50%

CPP & Other16%

Private Cdn17%

Public Japan1%

Public Europe7%

Global Cdn2%

Public US3% Global US

4%

SLIDE 21

Debt management

• $5.2 billion borrowing program for 2008/09

• $4.6 to $5.0 billion in outer years

• Very manageable borrowing program for AAA credit

• Will rely on province’s significant access to domestic and international capital markets

SLIDE 22

Summary / Budget 2008

SLIDE 23

• Revenue neutral carbon tax

• Over $1B for climate change

• Further tax cuts for businesses and individuals

• Investments to strengthen our economy

• Prudent plan

• Funding for key social services

Budget 2008

SLIDE 24

Disclosure statements

Certain statements used in this presentation are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and not statements of historical fact. These statements are based on the Province’s current estimates or projections and therefore you should not place undue reliance on them. Forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the state of our economy to differ materially from the forecasts and economic outlook expressed or implied by any forward-looking statements. We refer you to the Province’s filings with the U.S. Securities and Exchange Commission for a discussion of the various factors that may affect the Province’s economy. Forward-looking statements speak only as of the date they are made. The Province undertakes no obligation to update any forward-looking statements except as required by law.

SLIDE 25