VICTORIA: The Canadian Taxpayers Federation (CTF) reacted in horror today to a B.C. budget that will increase the province's deferred tax burden (debt) by an incredible $2.7-billion in the coming fiscal year.

"We are racing to an economic catastrophe," said CTF provincial director Troy Lanigan predicting further credit downgrades before week's end. "There is no government in Canada that has completely abandoned any plan or intention to balance its budget - with one notable exception."

"Two years ago we had the DMP -- Debt Management Plan, last year we had the FMP - Financial Management Plan, now we have the NMP - No Management Plan," said Lanigan. "The Minister's suggestion that we can 'grow our way out' is wrong headed and dangerous."

The CTF drew attention to the increasing costs associated with BC's burgeoning debt which will soon top $34.7-billion. "British Columbians will now pay $2.6-billion ($7.1-million a day) in overall interest payments - up from $1.8-billion ($4.9-million a day) when the NDP came to office in 1992," Lanigan said. "The greatest threat to health care, education and tax relief are growing interest costs."

By way of comparison, the CTF showed that Alberta's health and education spending will rise faster than BC's - all within the context of a balanced budget. Healthcare spending will rise by 6.6% in BC and by 8.7% in Alberta. Basic education will rise by 2.0% in BC and 7.1% in Alberta. "Patients and students are protected by balanced budgets in Alberta, and endangered by BC's growing interest payments on its fast-rising debt," said Lanigan.

The CTF also offered a comparison of what it calls the "myth" of declining resource revenues. CTF-Alberta spokesman Mark Milke on hand for the budget pointed out that "Natural resource revenues in Alberta have plummeted by 36% - or $1.37 billion - over the past two years. BC's natural resource revenues have dropped by 14.4% - or $317 million - over the same period. Alberta has balanced its budgets despite a drop in resource revenues over double that of BC. Glen Clark and Co. have a spending problem - not a revenue problem."

Troy Lanigan added that even as large as BC's deficit is, it relies on revenues of a remarkable $246-million in undisclosed 'sale of assets'. "We still have no idea of the cost of Skytrain, the final tab for ferries, the convention centre and on and on it goes." Lanigan said. Every other province in the country has gone through a period of deep spending cuts to balance their budgets. BC will one day face the music as well. In the meantime, the rest of the country races ahead as their budgets focus on issues of tax reform and relief - subjects foreign to this government while it wages an ideological jihad against BC taxpayers."