B.C. Premier John Horgan and Independent MLA Andrew Weaver talk before the NDP government’s throne speech, B.C. Legislature, Feb. 11, 2020. (Chad Hipolito/The Canadian Press)

Budget 2020: Weaver ‘delighted,’ minority B.C. NDP stable

Project spending soars along with B.C.’s capital debt

The B.C. NDP government’s latest budget carries on with its post-election program of subsidized housing, climate measures and taxes, while building up capital debt to record levels for hospital upgrades, transportation and other public works.

“The scale of change is staggering,” Finance Minister Carole James told the legislature as she presented the third full budget of the minority NDP government this week. “$18 billion worth of work is happening in all corners of the province.”

B.C. Liberal opposition critics pointed to stalled housing numbers and other signs of an economic slowdown, and tax increases including extension of provincial sales tax to streaming services. B.C.’s core natural resource revenues are also expected to remain low over three years, down by almost $1 billion from two years ago due to low lumber, coal and natural gas prices.

The budget offered little new for the forest industry, as loggers rallied outside the legislature, with a $13 million fund to pursue the government’s waste wood recovery and delivery of a $69 million package for communities that have lost sawmills.

The budget adds a new top tax bracket for high income earners, and extends the seven per cent sales tax to sweetened carbonated drinks, including sugar-free products.

RELATED: B.C. Liberals blast ‘Netflix tax,’ lack of economic plan

RELATED: ‘Sweet drinks tax’ isn’t just on sugar, diet pop hit too

RELATED: NDP taps top tax bracket again for new revenue

Former B.C. Green leader Andrew Weaver said he is “delighted” with the budget, including one of its few new spending measures, a grant program for post-secondary studies including diplomas and certificates under two years.

Now sitting as an independent, Weaver has pledged to continue supporting the NDP minority through the spring budget, despite his opposition to the government’s Site C dam and LNG Canada commitments.

The capital plan for three years is $7.4 billion for projects including highway projects in Delta, Langley and on the south coast of Vancouver Island, the Pattullo Bridge replacement for Surrey, the Broadway subway in Vancouver and further four-laning of the Kicking Horse Canyon.

The budget projects a $91 million deficit for the Insurance Corp. of B.C. for the current year, with small surpluses in the next two years as Attorney General David Eby moves injury claims from courts to a civil resolution tribunal that is already handling smaller disputes. ICBC lost $2.5 billion in the previous two years.

The budget projects small operating surpluses for three years, helped by personal and business income tax revenue and strong employment from projects including the Trans Mountain and Coastal Gaslink projects.

Public project spending is set to push B.C.’s capital debt to $87.6 billion by 2022, but that level “remains very manageable at 17.1 per cent of Gross Domestic Product, said Bryan Yu, deputy chief economist at Central 1 Credit Union.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UPDATE: Missing man found

‘Family and police are concerned for his wellbeing at this time’

TransLink CEO asks riders not to enforce mask rules after Surrey bus punch-up

A fight broke out on a bus at 96 Avenue and Scott Road involving a man who refused to wear a mask

UPDATED: Surrey RCMP arrest six youths after fight involving airsoft pistol in Newton

Police chased up to 30 youths, arresting six, after they scrambled from a fight behind Kennedy Trail elementary

Police investigating shooting in North Delta

Police say occupants of two vehicles exchanged gunfire near 120th Street and 82nd Avenue

Surrey’s Johnston Heights reporting COVID-19 exposure

Fraser Health has created a new webpage listing COVID-19 cases in schools

Community Connections: Gordie Hogg speaks with Margaret Cuthbert

Former mayor, MP began posting conversations on YouTube in June

Liberals seek to fast track new COVID-19 aid bill after CERB expires

Government secured NDP support for legislation by hiking amount of benefits by $100 to $500 per week

B.C. VOTES 2020: Echoes of HST in B.C. debate over sales tax

Cannabis, tobacco, luxury cars still taxed in B.C. Liberal plan

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

She warned her son about toxic drugs, then he was dead

Donna Bridgman’s son died at the age of 38 in Vancouver

B.C. food and beverage producers set record sales in 2019

Farmed salmon again leads international exports

Most Read