Premier Gordon Campbell said Monday that his Liberal government will table a new budget this fall, hinting that British Columbia's deficit could grow beyond the projected $495 million.
Campbell said Monday the Liberal government will try to stick to its budget plans of last February, but he suggested that the $495 million figure is not definite.
The B.C. Premier announced that he will appoint a new cabinet Wednesday, which will give him time to recall the legislature in August and table a new budget in September.
Both the federal and Ontario governments have recently admitted that their deficit predictions of a few short months ago have ballooned. Ottawa's projected deficit shot up to over $50 billion from the $34 billion forecast in January, while Ontario's shortfall is now expected to come in at $18.5 billion instead of the $14.1 billion predicted in March.
But Campbell said governments must adapt to changing times and economic forecasts in British Columbia have been on a roller coaster ride lately.
"We're aiming to try and accomplish the deficit we set for ourselves," said Campbell. "We're obviously living in a very volatile time, but we've set a very, I think, strategic and difficult challenge for ourselves in February."
Campbell's Liberals rewrote their own law outlawing budget deficits in order to allow the government to introduce two consecutive deficit budgets to deal with the worldwide recession.
After months of denials last fall, the government admitted the B.C. economy was falling into recession and the province would have to fall into the red to ensure vital government services are protected.
Throughout the recent provincial election, the Liberals rebuffed suggestions that the deficit would be larger.
Campbell did not directly say Monday that the September budget will include a deficit forecast above $495 million, but he suggested economic forces, including commodity fluctuations and revenue numbers, will not be ignored in the new budget.
British Columbia has also been posting some of the highest job losses in Canada in recent months.
"We're searching for smart solutions that will work in the long term," Campbell said. "When the facts change, you have to be willing to look at the facts. We are striving to accomplish the budget that we laid out in February of 2009."
During last month's election campaign, Campbell was firm that the government would keep the deficit at $495 million, leading to speculation that public sector job and service cuts were on the way.
He was less than adamant on Monday.
"Anyone that thinks they're going to rely on economic forecasts to determine what they are going to do, I think, is going to look back at the last year and say, `that doesn't make very much sense,"' he said.
Campbell said the government is attempting to cut $1.9 billion from discretionary spending and some programs as part of its February budget plan.
He said the legislature will be recalled Aug. 25 and a new budget tabled on Sept. 1.
Campbell has a slew of new faces in the Liberal caucus and several cabinet vacancies to fill, including that of attorney general and solicitor general.
