Province Tables Balanced Budget With Minor Tax Increases
Tuesday, February 19, 2013 @ 2:27 PM
Victoria The Liberals have tabled a balanced budget for 2013, it delivers on government’s commitment
to balance the budget while investing in early childhood development
and helping B.C. families save for their children’s future training
and education, Finance Minister Michael de Jong announced today.
Savings from spending controls have achieved an improved deficit
forecast of $1.2 billion in 2012-13. Beginning in 2013-14, continued
spending discipline, targeted tax increases, net economic growth, and
the successful sale of surplus government properties and assets
combine to eliminate the deficit and deliver progressively larger
forecast surpluses all three years of the fiscal plan:
* $197 million in 2013-14
* $211 million in 2014-15
* $460 million in 2015-16
Within the balanced budget, government is introducing new measures to
benefit B.C. families and help make family life more affordable,
including:
* The B.C. Training and Education Savings Grant, a one-time $1,200
grant toward a B.C. resident child’s Registered Education Savings
Plan after the child turns six years old. Payments are made from the
Children’s Education Fund, established in 2007.
* A new B.C. Early Childhood Tax Benefit will provide $146 million to
approximately 180,000 families with children under six years old,
effective April 1, 2015. Families with young children can receive up
to $55 per child, per month. Most will receive the full amount, while
those with family incomes between $100,000 and $150,000 a year will
receive a partial benefit. About 90 per cent of B.C. families with
young children are expected to be eligible.
* B.C.’s new Early Years Strategy will invest $76 million over three
years to support the creation of new child-care spaces and improve
the quality of child care and early years services. Included within
this, $32 million will support the creation of new child-care spaces
and $37 million will improve the quality of services available.
Savings of close to $1.1 billion have been identified in ministries
and Crown agencies over the three years of the fiscal plan. Budget
2013 puts about half of these savings toward achieving the balanced
budget, and about half ($497 million) to investments in families,
jobs and economic growth. These measures include:
* $60 million in new and reallocated funding to continue the Sports
and Arts Legacy Fund first introduced in Budget 2010.
* An additional $52 million over three years for increased RCMP
policing costs to maintain existing front-line services, including
officers hired to combat organized crime and gang activity.
* An additional $18 million for the recently announced B.C. Creative
Futures, to fund programming aimed at increasing youth participation
in the arts.
* An additional $13 million over three years to support the renewal
and renovation of 13 provincially owned Single Room Occupancy (SRO)
hotels in Vancouver’s Downtown Eastside to assist with temporary
relocation of residents as well as fund the annual service payments.
* An additional $5 million to fund enhanced treatment, counselling
and prevention services to address problem gambling.
* An additional $12 million over three years to complete funding for
the medical expansion program, fulfilling a commitment from 2001.
* $20 million to provide carbon tax relief for commercial greenhouse
vegetable and flower growers. In addition, government intends to
provide a carbon tax exemption for farmers for the same coloured
motor fuels, and uses, they are currently able to purchase exempt
from motor fuel tax.
The B.C. government’s balanced budget plan constrains spending growth
to an annual average of 1.5 per cent over the next three years, while
continuing to protect health and education services.
Savings and efficiencies in health spending will keep the growth of
the Ministry of Health budget to an annual average of 2.6 per cent –
adding about $2.4 billion over the fiscal plan to reach $17.4 billion
in 2015-16. B.C. continues to achieve key health outcomes that lead
the country while maintaining the second-lowest rate of health
spending per capita among provinces.
The Education budget will continue to rise over the three-year fiscal
plan to nearly $5.4 billion. To support the continued transformation
of education, the B.C. government will invest $210 million in the
Learning Improvement Fund over three years. A new $1 million
investment in the school fruit and vegetable nutritional program will
further support student health and nutrition by adding local milk to
the program.
To help achieve the balanced budget, government is making some
targeted tax changes, including:
* Increasing the general corporate income tax rate to 11 per cent
from the current 10 per cent, effective April 1, 2013. Despite the
increase, the general corporate income tax rate will still be 33 per
cent lower than in 2001, and B.C. will continue to have among the
lowest corporate income tax rates in Canada.
* A two-year increase in the personal income tax rate for individuals
earning more than $150,000. Rates will increase by 2.1 percentage
points to 16.8 per cent, starting Jan. 1, 2014. B.C. continues to
have the lowest provincial personal income taxes in Canada up to
$122,000 a year.
* Increasing taxes on tobacco by $2 a carton, effective Oct. 1, 2013.
* Phasing out school property tax credits for light industry (class
five) for the 2013 tax year.
Taxpayer-supported capital spending on schools, hospitals and other
infrastructure across the province over the next three years is
expected to total $10.4 billion. By eliminating the deficit,
controlling capital spending and starting to reduce the province’s
need to borrow, Budget 2013 forecasts British Columbia’s taxpayer-
supported debt-to-GDP ratio will peak at 18.3 per cent in 2014-15,
and decline to 18.1 per cent in 2015-16. The taxpayer-supported debt-
to-GDP ratio is a key measure of affordability, and effectively
managing this ratio helps maintain B.C.’s triple-A credit rating.
The economic and revenue projections for Budget 2013 were reviewed
and assessed by nationally respected economist Dr. Tim O’Neill.
O’Neill concluded that the Province’s revenue projections, processes,
methodologies and assumptions are generally well-founded, with the
exception of the national gas forecast. In response to O’Neill’s
recommendations, government added additional prudence to the Budget
2013 forecast for natural gas prices.
The government forecasts British Columbia’s economy will grow by 1.6
per cent in 2013, 2.2 per cent in 2014 and 2.5 per cent in 2015 – a
forecast that is prudent relative to the independent British Columbia
Economic Forecast Council.
Comments
All I ask the NDP to do, is present their budget. Let us know what you will do different. Because right now every government union leader is trashing this budget. So please, tell me how you are going to spend more, to keep them happy. Whose pocket will the money be coming from, or are you going to just borrow more money. I think it’s pretty much a slam dunk the NDP will be in power, so they have a duty to present the budget they will be bringing down 30 days after the election. I’d sure hate to hear those union leaders crying if the NDP does the exact same thing the Liberals are now proposing. What I’d really like for Christmas though, is for the NDP to vote against this budget, a few Liberals miss the vote, and an election triggered. That would mean the PST won’t come into force and the HST will stick around until the NDP come to power, and show us how it’s really done.
…better the demon you know than the one you do not.
The NDP will sink this province – just as they always have.
BC Rail is gone!
Gordon Campbell is gone!
The GST will be gone as well.
Move on!
NDP will run us into the ground so fast your head will spin.
A little reverse phychology by the Liberals. Raise taxes on wealthy and Corporations. Giving the electorate a small dose of what we can expect from the NDP.
Nice to see all the knee-jerk conservative trolls out on this site! I cant wait to see the NDP get in so we can have a real good look at the books. From 2006 to next year the Fiberals will have doubled the provincial debt! Way to go financial wizards of Victoria place!!! That is not including all the other debt they have run up in BCHYDRO etc. And what about the over $80 BILLION they ran up in p3 projects so their corporate friends would get guaranteed profits at our expense!!!
Just wait! Remember HST is not on the radar. BC Rail is not for sale. Remember?
Actually, I beg to differ with people who assert the NDP will drive us into the ground. For those that can read and understand basic information and are willing to do the research, we did far better under the NDP than under the Liberals.
I am not typically an NDP sort of person, but these Liberals are some of the most corrupt characters I’ve ever had the displeasure to know and they need to be eraticated like a bad dose.
” respected economist, Dr. Tim O’Neill” Respected by whom? Anyone who is more than 5 miles from home and carries a briefcase can be an expert. I wonder how much he was paid for this gig?
and if you did some research you would find your research or lack of was or is wrong
The public’s perceptions of which political party would be the best steward of the economy will be a key in this year’s provincial election.
According to several key metrics, the province has prospered economically in the past decade.
A BCBC (Business Council of British Columbia) study noted that B.C. has posted top performances in:
â¢average per-person incomes (rising 1.61% in the 2000s compared with falling 0.18% in the 1990s);
â¢average per-capita GDP growth (rising 1.2% compared with 0.65% in the 1990s);
â¢employment growth (with an unemployment rate of 6.6% versus 8.9% in the 1990s);
â¢business investment (with an average annual increase of 5.3% versus 3% in the 1990s); and
â¢fiscal management (with a surplus of 0.23% of GDP versus a deficit of 0.65% of GDP in the 1990s).
this positive economic performance came despite the dot-com bust in 2000, the effects of the September 11, 2001, terrorist attacks in the United States and the global financial crisis of 2008.
“We’ve performed reasonably well in spite of those headwinds. That’s quite impressive and worth pointing out.
According to Statistics Canada data, B.C.’s rise in average income has resulted from an employment increase in high-paying sectors. Over the past decade, the number of jobs in professional services, construction, high-tech, transportation and mining has grown significantly, with mining and construction posting some of the largest job increases since 2001.
For example, jobs in mining â which pay more than double the provincial average â have nearly tripled in the past decade.
A KPMG report last year noted that B.C.’s tech sector was the second-fastest creator of jobs in the past decade. Its revenue grew 56% between 2001 and 2009, and technology-related exports jumped 86% over the same period.
The number of jobs in the construction sector, which pays wages that are at least 25% above the B.C. average, rose 65% between 2001 and 2012.”
now thats research with facts ….
Well if those figures are right (which I doubt)but let us make believe they are right, then they must of borrower some more cash from BC Hydro’s coughers…again how many billions are they in debt now? Is KPMG going to purchase BC hydro? they better not try! That is one that the lieberals cannot steal. There is no reason to build a sight “C” hydro electric dam. No run of the river projects are required either. If the cost of hydro goes up then blame the lieberals but thed NDP will get BC hydro back into BC’s hands.
The public only has to look at all the things we need that have risen in price faster than our disposable incomes have risen to pay for them to see what a lousy failure the Liberal years have been.
The NDP’s contention has always been that, “The poor are poor because the rich are rich.” It’s nonsense, when considered in light of the way any modern economy actually works. But the failure of the Liberals is they, too, believe it’s true. And set out to prove it.
Sadly the saying you can lead a horse to water you just can’t make them drink applies to knowledge as well
Sadly the saying you can lead a horse to water you just can’t make them drink applies to knowledge as well
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