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Provincial budget: $1.7 billion deficit, $2 billion more funding to health care

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VICTORIA (NEWS1130) – Finance Minister Colin Hansen’s latest budget forecasts a deficit of $1.7 billion, an improvement from the $2.8-billion deficit from an updated forecast last September.  The government has not raised individual or business taxes.

Hansen says British Columbia received an Olympic-sized confidence boost by hosting the 2010 Winter Games, but it will be at least three years (2013) before the province is debt free.  Hansen says B.C. did not escape the world economic meltdown, as provincial revenues–especially in natural resources and taxes–plummeted by almost $3 billion.  Those revenues are expected to recover over the next three years, with the province forecasting economic growth of 2.2 per cent this year, rising to 2.7 per cent in 2012.

Hansen said the Liberals are adding $2 billion to health care over three years, with the Liberals planning to use revenues from the Harmonized Sales Tax (HST)–set to become law in July–to fund rising health-care costs.  Medical Service Premiums (MSP), increased last year, are going up again for individuals and families. Individuals will pay $3.50 more while the premiums rise $7 per family per month.

Hansen says the government is offering rural homeowners a $200 benefit above the current homeowner grant and British Columbians with children have the opportunity to defer their property taxes.  Hansen said the government will increase per-pupil funding by $100 to $8,300 and put $150 million in the budget for teacher wages.

For more details, visit the B.C. Government website.

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