BC Vows to Maintain Spending Despite Economic Slowdown
Lieutenant Governor Janet Austin delivers the speech from the throne before the Legislature in Victoria on February 6.CHAD HIPOLITO/The Canadian Press
British Columbia’s government expects its finances to contract in the coming year, but it won’t slow down on new spending, according to a new speech from the throne.
“As we emerge from the pandemic, we face major decisions to keep you and your family safe in the face of likely economic storms,” said the speech, read by Lieutenant Governor Janet Austin on Monday.
In its last budget update in November, BC forecast a surplus of $5.7 billion for the fiscal year ended March, sparking a rapid spending spree as Prime Minister David Eby’s New Democratic Party government aimed to burn funds that otherwise reserved would pay off the debt. These included a one-time “affordability” tax credit and a $500 million rental protection fund.
While the Eby government expects a drop in revenue rather than another windfall, it says this is not the time to cut programs and support.
“Economists are predicting a global slowdown. As we are a province that thrives on exports and international relations, this year’s surplus will not be there next year,” the speech from the throne said.
The budget, due to be unveiled at the end of February, “will make new record investments to improve public health care and create more housing for middle-class families. It will ensure that we build hospitals, schools, day care centers, roads and public transport that make us stronger. It will introduce new measures to lower the cost of living, especially for the most vulnerable.”
The Throne Speech also acknowledges the public’s fears of inflation, public safety and an overburdened healthcare system.
“By far the biggest concern people have right now is the rising cost of living,” Ms. Austin read. Without specifics, the province suggests additional relief is to come: “Your government will continue to work to help people with new measures targeting those who need them most, including those on lower incomes and families with children.”
To address the drug crisis, the government is promising to develop a new model of addiction care “that will seamlessly take people from detox to treatment and fill the gaps between services where people could relapse and fall through the cracks.”
As prime ministers gather in Ottawa on Tuesday to discuss a new healthcare funding deal with Prime Minister Justin Trudeau, the BC government is already planning “historic” new spending levels for the public health system. The Throne Speech highlighted plans to address growing cancer treatment waiting lists, with new investments to improve access to screening and early detection, diagnostic imaging and treatments.
The Speech of the Throne marks the beginning of the spring legislature. He outlines some of the legislation to be presented in the coming weeks.
On the agenda are tougher regulations to get polluters to shoulder the cost of cleaning up abandoned sites, laws to combat gangs and money laundering, and a measure to ban the malicious and exploitative sharing of intimate images without consent.
It will also introduce a skills training plan called Future Ready, which promises to make education and training more accessible and affordable.
The government is also promising the long-awaited Emergency and Disaster Management Act after raising concerns about emergency preparedness amid recent climate disasters, including floods, wildfires and a heatwave that killed 600 people.
And it will introduce pay transparency legislation “to shed light on the gender pay gap and move closer to equal pay for equal work”.
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