Finance minister Kevin Falcon has released the provincial budget for 2012-2013.
Among the highlights:
– The Liberals are sticking to their plan to balance the budget next year. This year’s budget aims for a 968 million dollar deficit, with a predicted surplus of 154 million in 2014-15.
– The deficit for the current fiscal year is now pegged at 2.5 billion, about 600 million dollars less then expected.
– To meet the goal, spending growth is being capped at two per-cent this year. The economy is expected to grow by only 1.8 percent.
– Spending on health will rise by about 3 percent, about half the recent average, and education spending remains flat, while advanced education funding will drop by about one percent.
– No new tax increases or cuts in the coming year, however, government will increase general corporate income tax by one point to 11 per-cent in 2014, if necessary.
– MSP premiums are going up again, by four percent. That will cost the average BC family another five dollars per month. Cumulative 22 percent increase over last four years.
– To help balance the budget over the next two years, government will sell-off of some assets including liquor distribution – warehouses and distribution services will be sold to the private sector.
– Over 100 properites up for sale, estimated gain of 700 million dollars over three years (assets include parking lot near legislature in Victoria, six hectares of land in Surrey no longer needed for hospital expansion, and seven hectare site in Kelowna that was being held for new jail).
– There will be more money for the justice system – 237 million dollars over the next three years, but just maintains the status quo, does not mean new judges or prosecutors.
– Small funding increases for Community Living BC (up to 40 million dollars) and for income assistance to deal with rising caseload.
– There are a couple of goodies in the budget, including new first time home buyers grant of up to ten thousand dollars, will be phased out for higher income earners, and only applies to newly built homes.
– New seniors home renovation tax credit, up to one-thousand dollars to help people over 65 stay in their homes longer.
– Carbon tax increase of about one cent per litre will go ahead this summer, but then it is frozen and under review. The review will include all aspects of the tax including revenue neutrality.
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