B.C.'s budget has too much 'padding' report says, urging more spending on social programs
A new report says B.C. has too much "fiscal padding" in the budget -- and that money needs to be spent.
'Flush with Cash' shows most provinces have unallocated funds in their budgets, money the Canadian Centre for Policy Alternatives thinks should be used to make public investments in social programs.
Alex Hemingway, a senior economist with the CCPA crunched the numbers from B.C.'s latest fiscal update. He found the budget has $6 billion dollars socked away in contingencies and rainy day funds.
He is calling on the government to spend more to deal with things like housing, the overdose emergency and climate crisis.
"When we're chronically under-investing that's going to lead to more climate damage in the long-term," he told CTV News in an interview.
He points to last year's budget, where a nearly $10 billion deficit forecast at the beginning of the year turned into a $1.3 billion surplus. At last count, this year B.C. was on track to post a $700 million dollar surplus.
For years, B.C. governments have said spending must be controlled ,in part, to ensure credit ratings remain high, which affects the government's borrowing costs.
Peter Milobar, the BC Liberals' finance critic said the surpluses show taxes are too high.
"When you're continually running surpluses while still getting record levels of taxation levels coming in -- you know they need to make those adjustments to put money back into people's pockets," he said at the legislature Wednesday.
Finance Minister Selina Robinson says money is being spent on social programs like child care, and housing. She added billions of dollars are being allocated from this year's budget to help lower-income British Columbians with inflation, fund a new deal with doctors, and address other urgent other priorities. Money is also set aside in case of natural disasters, or an economic downturn, she added.
"We've always been committed to spending these dollars on British Columbians so that the services are there for them when they need it," she said.
Robinson said recently there have been extra dollars set aside to deal with the pandemic and she expects things to level out in the coming years.
The BC Liberals, when in government were also accused of padding the budget to lower expectations, and then coming up with a "good news" surplus by year end. That's a tradition the NDP seem to have followed.
"This pattern of lowballing has played out over the past two decades in just about every budget with a few exceptions," added Hemingway.
The reason Hemingway says that's important to discuss -- is because accounting principles dictate that whatever money isn't spent by year end can't be used in the next budget year.
CTVNews.ca Top Stories
LIVE B.C. seeks ban on using drugs in 'all public spaces,' shifting approach to decriminalization
The B.C. government is moving to have drug use banned in 'all public spaces,' marking a major shift in the province's approach to decriminalization.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Trump's lawyers try to discredit testimony of prosecution's first witness in hush money trial
Donald Trump's defence team attacked the credibility Friday of the prosecution's first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican's 2016 presidential campaign.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Air traveller complaints to Canadian Transportation Agency hit new high
The Canadian Transportation Agency has hit a record high of more than 71,000 complaints in a backlog. The quasi-judicial regulator and tribunal tasked with settling disputes between customers and the airlines says the backlog is growing because the number of incoming complaints keeps increasing.
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
U.S. flight attendant indicted in attempt to record teen girl in airplane bathroom
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.
Powerful tornado tears across Nebraska, weather service warns of 'catastrophic' damage
Devastating tornadoes tore across parts of eastern Nebraska and northeast Texas Friday as a multi-day severe thunderstorm event ramped up in the central United States.
76ers All-Star centre Joel Embiid says he has Bell's palsy
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.