CTF: BC budget disappoints as spending and borrowing rise
By Contributor
The Canadian Taxpayers Federation is disappointed with the B.C. government’s management of the public purse and troubled by rising public debt forecast in today’s provincial budget.
“This government would like everybody to cheer a $1.265 billion deficit for last year, because it’s lower than forecast. That’s not good enough. The real story here is $440 million in spending overruns and rising provincial debt,” said Gregory Thomas, British Columbia communications director of the Canadian Taxpayers Federation.
The province forecast total expenses of $41 billion for the current fiscal year, up 4.3 per cent from $39.3 billion a year earlier and $440 million over budget.
“The B.C. Liberals spending grew faster than the economy, faster than the population, and faster than the rate of inflation,” said Thomas. “This needs to stop.”
Thomas said the budget overrun calls into question the government’s plans to cap spending in the coming year to a 2.2 per cent increase.
“The finance minister is making much of last year’s deficit figure – down from $1.715 million forecast in the budget,” said Thomas. “The fact is that tax revenue is up $740 million.”
Thomas pointed to another planned 6 per cent hike in medical service plan premiums – the third annual increase in a row – as one example of tax-gouging working families to cover cost overruns.
The province expects total public debt to balloon by $7.5 billion in the current fiscal year, and $6.1 billion next year. “It’s no surprise that B.C. Hydro is asking for 10 per cent rate hikes in each of the next five years,” said Thomas. “Somebody’s going to need to pay the interest on all this new debt.”
“And let’s not forget the province’s 7 per cent HST rate,” said Thomas. “It’s at least two points too high, thanks to all the rebates, credits, and special deals for special interests. Cutting the HST needs to be the government’s first priority, and this budget doesn’t address it.”
This article is a press release from the Canadian Tax Payers’ Federation.
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