Business groups are voicing broad support – but a few concerns – with B.C.'s just-released budget.
"The government is set on balancing the budget in 2013/14, I see that as tremendously positive," said Niels Veldhuis, director of fiscal studies for the Fraser Institute.
The BC Chamber of Commerce and the Business Council of BC have also issued statements, respectively endorsing the budget as "disciplined" and "responsible and cautious."
The budget unveiled a government plan to contain spending growth to an annual average of 2%, returning from the current budget deficit to a projected surplus of $154 million in 2013-2014.
However, despite approving the course toward a balanced budget, Veldhuis voiced concern with the government rescinding an expected small business corporate tax rate reduction and hinting at a possible 1 percentage-point increase to corporate business taxes as of April 1, 2014.
"The narrative that [the government is] trying to set is that their budget lays a firm foundation for the future of B.C. – and I actually think that it doesn't do that and that it leaves a lot of uncertainty as to what the future looks like," he said, citing the uncertainty with the corporate tax rate.
"That's not a good signal to investors that want to invest in the province because they don't know what to expect in the future."
Veldhuis added that the government hasn't done anything substantive to fix the health care budget, which will increase by $1.5 billion over the three-year fiscal plan to nearly $17.3 billion in 2014-2015.
"While they say they're going to decrease the growth rate in spending, they're not making any reforms to ensure the sustainability of healthcare for the future," he said.
"That, to me, creates a great deal of uncertainty."
@JennyWagler_BIV
