CALGARY, AB – The Government of British Columbia has taken advantage of a relatively healthy provincial economic forecast to deliver a largely hold-the-line budget that invests little in above-inflation spending except in health and services for family and children.

The province is projecting the economy will grow by 2.3 per cent in 2015. While commodity prices are down, the low Canadian dollar will benefit exports and should attract additional tourism revenue.

Although the province projects surpluses over the next three years, it will spend $11 billion on new capital projects over the next three years, bumping total provincial debt up to $70.4 billion by 2017/18.

“The B.C. government is controlling its spending in line with revenue expectations and managing its capital spending because it wants to retain its Triple A credit rating,” says Janice Plumstead, the Canada West Foundation’s senior economist.

“There’s a gift to a few industries in terms of tax credit extensions, but otherwise it’s business as usual.”

There is meaningful investment in providing support for vulnerable groups, including single-family households. This is a government that is serious about addressing child poverty in the province. Over time, it will be interesting to assess the efficacy of these investments.

In spite of fee increases for MSP and motor vehicle registration, B.C. remains one of the most competitive tax regimes across the country.
NOTE: Senior Economist Janice Plumstead is available for detailed comment on what this budget will mean for B.C. and the rest of the West.