The B.C. Liberals understated spending growth in their latest budget, and a more “realistic” estimate points to a $790 million deficit this year instead of a $200 million surplus, NDP finance critic Bruce Ralston said today.
“The Liberal budget projects only 0.8% growth in expenditures for the coming year,” said Ralston. “But average growth over the Liberals’ term in office has been 3.2%.
“Either the Liberals have understated expenditures dramatically, or they are planning a massive wave of secret post-election cuts to critical services for British Columbians.”
Ralston said the Liberals have also put too much faith in the planned sale of government-owned land and buildings. In its latest budget, the government included $475 million in revenue from the sale of the assets this year, and $150 million next year. But none of the sales has been finalized.
Putting hundreds of millions of dollars in revenue from BC Hydro is also a problem, said Ralston, pointing to the B.C. auditor general’s warning that the Crown corporation’s overuse of deferral accounts “creates the appearance of profitability where none actually exists.”
