VICTORIA: The Canadian Taxpayers Federation (CTF) responded with disappointment to today's provincial budget. "Program spending is up, capital spending is up, the bureaucracy is growing and the debt is burgeoning out of control. Taxpayers have been left behind-the government's agenda is focused on spending," said Sara MacIntyre, BC director for the CTF.

Budget 2006 Growing with Confidence was delivered today and focused on: public sector compensation, social spending on family and children, skills and training, capital spending as well as targeted tax relief measures.

"Frankly, this government is heading in the wrong direction. Instead of trying to improve the competitiveness of the tax system by simplifying, lowering and flattening tax rates, the province has taken a policy of particulars approach. Handing out tax credits to specific industries, groups and leaving most taxpayers in the dust," said MacIntyre.

In addition to the increased emphasis on spending, this year's budget has once again demonstrated the government's inability to stick to its own financial plan. Comparing forecast numbers from just two budgets ago, the government's financial projections have been significantly off the mark.

"In 2004, the government planned $2.8 billion in capital spending for 2006, but today's budget reveals that forecast was off by a whopping 41% or almost $2 billion. Even more troubling is the major jump in debt servicing costs. The budget pegs debt servicing costs at $2.3 billion for this year, up from $1.2 billion in the September Budget."

"Unfortunately for taxpayers, this government has tailored its debt plan to suit credit agencies, not taxpayers. In fact, this year's budget forecasts the debt to hit $40 billion by 2008/09. The government is squandering the benefits of a booming economy; spending today instead of building for tomorrow," noted MacIntyre.

"After another year of billion dollar surpluses, the needs of taxpayers have been eclipsed by the Olympics, public sector negotiations and targeted hand-outs. We can only hope that this is not the new vision for the province and the government remembers that their return to office was because of their first term fiscal achievements," concluded MacIntyre.