B.C. is expected to record a surplus of close to a billion dollars for the next three years. This puts the province in a very exclusive “balanced budget club” not only in Canada but North America, according to provincial Finance Minister Michael de Jong.
The Finance Minister was the guest speaker at this year’s annual CEO breakfast hosted by the Independent Contractors and Businesses Association of B.C. at Buildex Vancouver where he highlighted the financial strength of the province.
A government with a balanced fiscal house is important because it means “no surprises” for businesses, he said, alluding to tax increases. B.C.’s high credit rating (triple A) means stronger borrowing power and the ability to fund projects. Capital spending will be $10.7 billion over the next three years which includes infrastructure expenditures, said de Jong.
The province’s balanced Budget 2015 forecasts surpluses in all three years of the fiscal plan:
- $284 million in 2015-16
- $376 million in 2016-17
- $399 million in 2017-18
De Jong said achieving a balanced budget is simple: spend less than you take in. “You take in money and if you spend more than that you have a problem,” he said.
The government is taking a cautious approach and is projecting B.C. economic growth of 2.3 per cent in 2015; 2.4 per cent in 2016 and 2.3 per cent in 2017 which is slightly lower than the outlook provided by the Economic Forecast Council.
He described B.C.’s economic growth as stable and moderate and while not spectacular, the province is in much better shape than the rest of Canada.
One of the reasons for B.C.’s fiscal stablity is its trade diversity. The province is not reliant on one market like in Alberta where it sees 90 per cent of its trade exports to the U.S. “If you are 90 per cent dependent on one market, you are exposed,” he said.
De Jong also touched on targeted tax measures (eg. training incentives) and additional investments in areas such as Aerospace and Buy Local B.C..
Budget 2015 was the third consecutive balanced budget delivered by the provincial government.
