Dark Clouds Gathering
Over BC Legislature
Deficit growing out of control
From a balanced budget in the FY 2019-20 to an out of control deficit in FY 2025-26 of $10.9 billion British Columbia's economic state should be cause for concern for all.
With the additional deficit resulting from cancelling carbon tax revenue, the deficit will increase once again.
In FY 2019-20, total revenues were $59 billion and total expenditures were $58.3 billion. This left a budgeted surplus of $700 million. There was a total debt of $46.9 billion representing 15.2% of gdp.
In FY 2025-26, total revenues were $89.4 billion and total expenditures were $100.3 billion. This left a budgeted deficit of $10.9 billion. There is now a total debt of $112.1 billion representing 25.5% of gdp .
Debt servicing costs have risen from $2.7 billion to $4.4 billion over the period. These figures indicate a substantial increase in both net debt and debt servicing costs over the six-year period, reflecting the province's increased borrowing and associated interest obligations
How is it possible to increase revenue by 50% and go from a balanced budget to an $11 billion deficit?
Where did the money go Mr. Eby? Where?
There has to be an explanation of how total revenues can increase by $30.4 billion and, at the same time, expenses increased by $42 billion, resulting in a ballooning deficit of $10.9. How is it possible to increase revenue by nearly 50% and not be able to maintain a balanced budget?
There is a variety of contributing factors, one of which is the 22% increase in the number of people in the public service. For comparison during this same period private sector employment increased by a mere 0.5%. These figures highlight a significant expansion of public sector employment.
There are several reasons put forward as examples of pressures that result in our current budget. They are :
- increased public spending on items such as healthcare, education and infrastructure.
- Economic challenges such as impacts of international trade disputes and tariffs affecting revenue.
- Changes in some taxation policies which have seen some taxes eliminated.
Is it time for British Columbia to appoint a DOGE to examine how tax dollars are being mismanaged by this government ?
British Columbia's projected debt servicing cost of $4.4 billion for the fiscal year 2024–2025 represents a significant portion of the province's expenditures when compared to major sectors like healthcare and education.Healthcare Spending :
The province plans to allocate $52 billion to healthcare in 2025.
The debt servicing cost of $4.4 billion is approximately 8.5% of the healthcare budget.
Education spending :
For K–12 education, British Columbia has budgeted $9.6 billion for the 2024–2025 fiscal year.
The debt servicing cost equates to about 45.8% of the K–12 education budget.
These comparisons underscore the substantial impact of debt servicing on the province's finances, highlighting the importance of managing debt to ensure sufficient funding for essential public services.
These numbers indicate that combined healthcare and education budgets account for $52 billion and $9.6 billion, respectively. Total budget revenues are said to be $89.4 billion, while expenditures are set at $100.3 billion. Education and healthcare account for $61.6 billion of the total budget, leaving a total of $38.7 billion for other expenses. There are some interesting questions to be asked about where YOUR tax dollars are going.
Education spending :
For K–12 education, British Columbia has budgeted $9.6 billion for the 2024–2025 fiscal year.
The debt servicing cost equates to about 45.8% of the K–12 education budget.
These comparisons underscore the substantial impact of debt servicing on the province's finances, highlighting the importance of managing debt to ensure sufficient funding for essential public services.
These numbers indicate that combined healthcare and education budgets account for $52 billion and $9.6 billion, respectively. Total budget revenues are said to be $89.4 billion, while expenditures are set at $100.3 billion. Education and healthcare account for $61.6 billion of the total budget, leaving a total of $38.7 billion for other expenses. There are some interesting questions to be asked about where YOUR tax dollars are going.
Financial statements are subject to audits to vouch for their accuracy. This type of audit will seldom uncover any actual wrongdoing. For that there needs to be a forensic audit performed which is specifically designed to uncover evidence of fraud, embezzlement, or other financial crimes.
Given this government's fiscal performance record, such an audit is not only warranted but should be demanded by every taxpayer in the province.
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