The update to the 2013 provincial budget handed down by Finance Minister Mike de Jong on June 27 didn’t reveal many surprises.
Cariboo-Chilcotin MLA Donna Barnett says, it was what she expected, as it closely matches the budget tabled in February, before the election.
“It really isn’t much different. Revenues are down [$900 million], and our forecast is for the economy to grow by 1.4 per cent, and 2.2 per cent in 2014 and 2.5 per cent in 2015.”
She notes both the accuracy of those forecasts and domestic activity will rely on what happens with the United States and European debt crises, but she personally attributes the revenue drop to the global economy, and a decline in British Columbia’s retail sales and housing.
A two-year increase for personal income tax over $150,000 and a tobacco tax hike in October match February’s budget, but the MLA notes she is pleased to see personal income tax and carbon tax now frozen for five years, as outlined in the pre-budget throne speech.
However, Barnett says she is not overly concerned about the $500-million reduction for government operations across the ministries.
“That’s a good start. Minister de Jong has said he will be protecting health care, education and social services. I believe there is a long way to go … but that government can cut costs without cutting services.”
As she emphasized in her election platform, new revenue streams are the answer to the economic crunch, Barnett adds.
Government’s planned acceleration of the BC Jobs Plan to grow its export sector, also emphasized in the throne speech, means finding and being competitive in new markets in Asia and elsewhere, she explains.
Barnett says increased training so workers in the province have the skills, the ambition and the ability to do the job will ensure they are first in line for jobs – if they want them.
“When the jobs are posted, I would hope that we have the qualifications and the expertise in British Columbia, and that people are there looking for those jobs.”
Projected increases in natural gas prices from $2.25 to $2.89 per gigajoules within the next two years is a good thing for the revenues, although an increased burden on consumers, she notes.
“I think they are both important factors and, of course, if we can sell our natural gas to other jurisdictions, that’s where the benefit is to the taxpayers.”
Barnett says de Jong’s forecast for a drop in lumber prices from $348USD to $300 by 2015 is not something her constituents should worry about too much right now.
“I think the minister is being very responsible in looking at projections on the lower side. If that doesn’t happen and the world economy picks up, then, of course, that will change.”
However, she adds spending by government won’t change, at least not during the term of this financial plan.
“It’s a budget we ran on and it’s a budget we will stick to, and we will have to be very diligent in how we spend taxpayer’s dollars.”
