B.C. Government prudent with fiscal projections and limiting spending growth to two per cent
Continual MSP increases and Crown Corp creep hurt families
VICTORIA, B.C.: The Canadian Taxpayers Federation (CTF) responded to Minister Kevin Falcon’s 2012-13 British Columbia Budget today.
“The net zero public sector wage mandate is the single best thing this government has done,” said CTF-B.C. Director Jordan Bateman. “Net zero has saved taxpayers $3 billion annually and is the key driver to moving B.C. towards a balanced budget in 2013. Without net zero, government would be bleeding red ink at an unsustainable rate and borrowing truckloads of money just to stay afloat.”
The B.C. government is projecting a $968 million deficit for 2012-13, before returning to surplus in 2013-14. That would make B.C. only the second province in Canada to get back in black—following Saskatchewan’s lead.
“Minister Falcon should be commended for prudent fiscal forecasting on the revenue side, although cabinet will need to sharpen its pencils to get spending increases down to the projected two per cent,” said Bateman. “This was one of the key recommendations the CTF made in our pre-budget submission, and we are pleased to see government move in that direction.”
While income taxes are being left at their present level, B.C. families will be hurt by the fourth Medical Services Premium increase in just three years, along with Crown Corporation rate increases driven partly by the need for BC Hydro, ICBC, Lotteries and others to return more money to government.
“Instead of starting to wean B.C. off its reliance on BC Hydro, Lotteries and ICBC, the government is continuing its game of Crown Corp creep—nickel and diming ratepayers while taking more money out of those corporations,” said Bateman. “With today’s budget, the MSP tax has increased 24 per cent in three years—costing families another $300 a year. That’s just too much.”
The MSP tax generates $2 billion a year for the province, but the truth is almost half the taxes in B.C. are a health care tax—health care and education now eat up more than two-thirds of government spending.
“Politicians and public sector employees don’t pay the MSP tax, so they don’t understand how much it hurts,” said Bateman. “But entrepreneurs, small business owners, middle class families and even those private sector employees lucky enough to have an employer pick up their MSP tab, know what a bite this is out of their pockets.”
