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Tax cuts and spending increases on education and child-welfare programs will be the cornerstone of the B.C. government's re-election bid this spring.
The B.C. government released its 2017-2018 budget this afternoon, which boasts a projected fifth consecutive surplus.
"Budget 2017 represents this government's fifth-consecutive balanced budget, showing the benefits of a fiscal plan that includes steady, solid growth and managed spending," said Finance Minister Michael de Jong.
"There's additional funding for the programs people rely upon and almost $1 billion left in the pockets of British Columbians to let them make the choices that are important to them."
Beginning Jan. 1, 2018, medical service premiums (MSP) premiums will be reduced by 50% for households with an annual net income of up to $120,000. Following this change, more than two million British Columbians will pay no premiums and a further two million will see a 50% reduction in their premiums, cutting premiums near to levels set in 1993.
A typical family of four paying full premiums will save $900 per year in 2018. A single parent with net income up to $40,000 and two children will see their monthly premiums drop from $46 to $23. A family with net income less than $35,000 and two children will see their monthly premiums eliminated.
The 2017-18 budget also cuts the small business income tax rate to two percent from 2.5 per cent, and will eliminate the provincial sales tax on electricity for business by 2019-20.
The $50.2-billion budget forecasts a surplus of $295 million, down from the $1.5-billion surplus forecast for the current fiscal year ending March 31.
Some notable spending increases include an additional $287 million over three years for the Ministry of Children and Family Development, including $120 million to address indigenous child welfare.
The government is also setting aside an additional $740 million over three years for education, including $228 million more to fund enrolment growth in B.C. schools, funding for rural education enhancement, student transportation, K-12 salary costs, continued funding for the Learning Improvement Fund, and an incremental $320 million over three years while government works to conclude a final agreement with the BC Teachers' Federation on class size and composition.
The province’s Liberal government has been in power since 2001 and the next election will be held May 9.
For more information on the budget, visit the government website and stay tuned to KelownaNow on Wednesday for further coverage including a podcast with a local accountant.
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