British Columbia's babysitter budget and its $600-million allowance for the next premier was greeted warmly Tuesday by the Liberal leadership candidates vying to replace Gordon Campbell.
Finance Minister Colin Hansen went out of his way to describe the budget as a low-key financial statement that holds the line for the Liberal government until the party chooses a new leader and premier on Feb. 26.
"As a potential incoming premier, that is one of the most responsible budgets I've had the opportunity to see," said leadership hopeful Kevin Falcon, who is considered a frontrunner among the six candidates.
"I like the fact that there is some real legitimate leeway that will be in place for an incoming premier."
Leadership candidate George Abbott said he expects the new leader to deliver a new budget in the fall, with Hansen's budget serving as a starting blueprint.
"I don't think there will be huge changes," said Abbott.
Opposition New Democrat finance critic Bruce Ralston said Hansen missed an opportunity to point the government in a new direction. Instead, Ralston said the finance minister chose to relive past budget failures and sock away spending money for the new premier.
"They've piled up a pretty big pile of cash for the incoming leader to spend as he or she sees fit," said Ralston.
The Liberals are in the final weeks of a leadership campaign to replace Campbell, who announced last November he would be stepping down as premier after a decade in power.
"Compared to the previous four budgets that I have had the honour of delivering, I cannot describe this budget as exciting," said Hansen. "But it comes at an extraordinary, exciting time in B.C.'s history."
Political pundits and political junkies are in their glory as the two major B.C. political parties stage leadership contests.
Campbell and New Democrat Leader Carole James announced their resignations within a month of each other, after enduring months of political turmoil within their respective parties.
Campbell's exit was prompted by the public furor around his government's decision to introduce the harmonized sales tax. He admitted the persistent controversy had reached the point where he could no longer be taken seriously.
James quit in December, when an internal caucus revolt over her leadership threatened to plunge the NDP into a never-ending public feud.
Despite projecting a budget deficit of $925 million, Hansen said British Columbia came out of the recession without suffering permanent damage, and the B.C. economy is recovering slowly. Still, he warned volatile economies in the United States and Europe could still mean an uncertain economic future.
Hansen said the government shaved 25 per cent off its original deficit projection for 2010 to $1.265 billion from $1.7 billion. The $925-million deficit projected for 2011-2012 is also down from an earlier forecast of $945 million.
Hansen said the government remains on track to balance the budget within three years for its 2013-2014 budget.
But the provincial debt is forecast to hit more than $60 billion in 2013-2014, up from $47.7 billion this year. Hansen said much of the increase in the debt is related to spending on government infrastructure projects, including include schools, hospitals and bridges.
Despite the costs of paying for the debt, the province can still handle the payments, he said.
"We are living within our means," said Hansen.
Hansen sounded the alarm over the looming province-wide referendum on the HST, saying if British Columbian's vote to reject the value-added tax, the province is plunging into the unknown.
"The fact is, no province has ever backed out of the HST after implementation," he said. "Being first would put us into uncharted waters."
The budget includes an additional $605 million for the Health Ministry for front-line service delivery, $65 million to the Social Development Ministry for income assistance to needy families and $150 million in extra contingency dollars to help the next premier "address unforeseen issues."
That $150-million contingency and a $450-million forecast allowance will mean the next premier will have $600 million at his or her disposal, Hansen said.
"We have never had a contingency that large," said Hansen. "The new premier will have lots of options. Just because there's a $600-million contingency in this budget, (that) doesn't mean he has to spend it."
The budget forecasts economic growth of two per cent this year, 2.6 per cent in 2012, and 2.7 per cent in 2013.
"We were determined to turn things around, and to leave our children a different kind of legacy," said Hansen, looking back on the past decade. "We set out a clear plan and got to work immediately to make things better for our province and our people."
The Opposition New Democrats, who will elect a new leader on April 17, have said the government has decided to focus on its past rather than help the unemployed, poor and homeless.
University of Victoria social policy expert Michael Prince said Hansen missed an opportunity to signal that the government was prepared to help the disadvantaged.
"This is a budget strong on the fiscal side," said Prince. "Really strong on the partisan side, very thin on the social side. Disappointing."
Greg D'Avignon, president of the Business Council of B.C., called the budget a conservative financial statement that manages to give the incoming Liberal leader room to put his or her stamp on the government.
The business community wants to see focused policy and spending targets when it comes to the $600 million in contingencies, he said.
"That contingency needs to have some focus to it," said D'Avignon. "It needs to ensure that we stick to the debt repayment and deficit reduction targets."
