Wednesday, September 02, 2009

$2.8-billion Deficit for BC

Colin Hansen Projects
$5.5-billion Deficit

Saying that BC is 'not out of the woods yet', Finance Minister Colin Hansen says he is projecting a deficit of $2.8-billion for BC. The same man said earlier this year we could expect a $500 million deficit which could call into question the validity of his current budget figures.

To refresh the memory this is a quote from the budget summary delivered in Feb. of this year:

"The temporary deficit outlined in Budget 2009 will total $495 million in 2009/10 and $245 million in 2010/11. Provincial legislation requires a return to a balanced budget by fiscal 2011/12."

In yesterdays budget the 'temporary' deficit figures have changed somewhat they now are:

"The Budget Update contains revised deficit forecasts of $2.8 billion in 2009-10, $1.7 billion in 2010-11, and $945 million in 2011-12."

Again it needs noting that these figures are nothing more than pure speculation on his part, already proving how the method of accounting used by government would be disastrous if used in planning your families finances.

There will be tax increases, fee increases and spending cuts in an attempt to manage the provinces finances. Your MSP will be going up another 6% which is called a premium but is really just another form of tax.

The HST can be expected to be applied to a whole raft of previously exempt items in what is clearly a desperation move by a government who one time made it illegal to run a deficit budget. Remember?

Editor's Note: This is what happens when government spends like mad during good economic times and commits to future spending as if the party will never end. The net result, is our kids, kid's kid's will still be paying for our folly.
As to credibility this government is stretching it well beyond the limit this year. They claim that during the election the deficit was believed to not exceed $500 million and that the HST was not even being considered. Then BAM, PRESTO they have the revelation that the deficit is only six times higher than they thought and now all of a sudden the HST is the best possible method of taxation, without explaining why it was not during the past two terms as government.
Credibility? I think not. Sadly, in BC we don't really have much choice as history proves the opposition to be no more capable than the current lot.


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