Less-than Exciting Budget At An Exciting Time

By 250 News

Prince George, B.C. - B.C.'s Finance Minister characterizes the 2011 provincial budget as a 'status quo' financial plan...

Colin Hansen says compared to the past four budgets he's delivered, it's the least exciting, but it comes at an exciting time, with just 11-days to go before British Columbians will know who the Premier-designate will be.  He says a status quo budget was the prudent way to go with a new Premier, new leader of the Opposition and a referendum on the HST on the agenda in the next few months.

Rising in the House to deliver the document this afternoon, Hansen "(The budget) does not set out new directions, that will be in the purview of the next Premier, who will set the course for the next decade of growth and opportunity for this great province."

Hansen says the province weathered the economic recession better than most jurisdictions and is well-positioned for growth in the coming decade. "In 2009, our economy shrank by 1.8-percent, but that was compared to 2.5-percent decline for Canada, as a whole," says the Finance Minister, "Growth picked up in 2010 at 3.1-percent and we're seeing positive indicators across a wide range of sectors - exports, housing starts, retail sales and tourism numbers are all on the rise."

"Mining is back in a big way, with mineral exploration now more than ten times higher than it was at the end of the 1990's."  And he says construction activity surged in the past two years, thanks in part, to the government's accelerated infrastructure program.

Hansen says there are still challenges to be faced in bolstering the provincial economy, but says we're on track, "As per the five-year plan we introduced in September of 2009 to get back to balanced budgets by 2013."

The Finance Minister expects the BC economy to grow by 2-percent in 2011, by 2.6-percent the following year and by 2.7-percent in 2013.  He points out these estimates are conservative when compared to private forecasts.  Revenues are expected to grow over the next three years by annual rate of 3.4-percent with annual spending growth limited to 2-percent. 

"With revenues rising faster than spending, the deficit will be eliminated," says Hansen.  "It is now forecast at $1.265 Billion for the fiscal year just ending, that's over 25-percent lower than the $1.715B forecast last year."

Hansen says the deficit will continue to be erased over the next two years, with a surplus of $175-million dollars in 2013.  He says there are contingenies and yearly forecast allowances totalling $2.5-billion dollars to built into financial plans for the next three years to protect against any unforeseen challenges.

Other highlights:

- through the Pacific Gateway Alliance, the government is working with partners - in the private and public sector - to undertake a $22-billion dollar expansion of port, rail, roads, and airport facilities with the aim of building BC's reputation as the 'preferred' gateway for Asia-Pacific trade

- revenue from the forest industry is expected to increase by more than $100-million dollars in the year ahead.  The Finance Minister concedes that's still below historical levels, but says it appears the industry is on its way to a healthy economic recovery

- allocating an additional $605-million dollars to health care in 2013, for a total increase of almost $2-billion dollar increase compared to 2010.  Of that, $1.4-billion more will go to the health authorities and other health delivery partners for front line services

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