The HST referendum and BC’s free-spending ways are catching up with us. Finance Minister Kevin Falcon released his first quarter fiscal report today, and it was abysmal news for taxpayers:

•    The $925 million deficit projected for this year has ballooned to $2.8 billion.
•    The $440 million deficit planned for 2012-13 is now $805 million.
•    The surplus of $175 million set for 2013-14 is now a $458 million deficit.
•    The provincial debt is expected to reach $62.3 billion by the end of 2013-14.

Hanging by a thread is the leadership campaign promise by Premier Christy Clark to “balancing the budget by 2013/14 or sooner.”  So is Finance Minister Kevin Falcon’s leadership campaign pledge “to balancing the BC Government budget by 2013.” Health Minister Mike de Jong oversees 43% of government spending. His wistful comment, “At times, I have felt like I was the only candidate in this leadership race talking about the deficit and the need for balanced budgets,” seems like it was uttered years ago. But it came in February. Feel free to get back to talking about that, Minister de Jong. Education Minister George Abbott, presently negotiating an expensive contract with the BC Teachers Federation, said in the leadership campaign that he supported a balanced budget in “2013/14 as the current fiscal plan dictates. I believe that objective is achievable.” The rubber hits the road on this contract, Minister Abbott.

Now the Finance Minister, despite a half-billion dollar shortfall in 2013-14, said today that he wants to get that number balanced. But clearly his numbers are not there yet.

Premier Clark has a unique opportunity to go through government and cut spending. She didn’t make most of the decisions over the past decade (the BC Liberal government spent about $22 billion in 2001, and will spend $43 billion this year). She doesn’t have to respect the past’s sacred cows. She can cut things like the Pacific Carbon Trust and reduce public sector budgets, all under the mantra: “BC: Under New Management.”

2012 Budget Consultations start this month and your Canadian Taxpayers Federation will definitely have a submission on how to get BC back in black. Feel free to post your suggestions on this thread--or email us at [email protected].

Under new management, that $458 million deficit planned for 2013-14 can turn into a surplus. It's vital for the BC economy, and the financial well being of British Columbians, to balance budgets.