BC GOVERNMENT BUDGET SUMMARY FOR 2022
Finance Minister Selina Robinson tabled British Columbia's 2022-2023 budget on February 22nd.
The B.C. government will spend more on childcare, climate resiliency and health care as well as making what it calls “unprecedented” capital investments in hospitals, schools, and roads.
B.C. ended the fiscal year with a much lower deficit than expected. It projected a $9 billion deficit but ended up being $483 million in the red largely due to a sizeable windfall from property transfer taxes through the sales of homes. However, they are predicting a deficit for 2022/23 of $5.4 billion.
Robinson defended the budget plan to spend, rather than save. The province has opted to run a $5.4 billion deficit in its 2022-23 budget to cover the pandemic, unforeseen climate disasters and the cost of new public service labour contracts.
There was one reference to a $25 million fund for Tourism.
The Minister stated: “Millions in funding provided a lifeline for more than 8,000 tourism businesses. And additional funding will provide support for non-profits impacted by the pandemic, as well as the arts, culture, and music sector. This year’s budget will continue support for the tourism sector as it recovers, with $25 million earmarked.”
Key Budget highlights include:
- The province projects a deficit of $483 million for the 2021-22 fiscal year, compared to a $9.7 billion deficit projected for the same fiscal year in the previous budget
- B.C. budget includes $145 million over three years to be used in part to move the BC Wildfire Service from its current reactive model of fire response to a more proactive one.
- No changes to the corporate tax rates or the $500,000 small business limit are proposed
- BC’s personal tax brackets are indexed to inflation on an annual basis. No further changes to the personal tax
- On April 1, there is a $5-a-tonne increase to the carbon tax, which will mean a one-cent-a-litre rise in fuel prices. The price at the pump will rise further because of a requirement that higher-grade, lower-carbon fuel be sold.
- Starting July 1, the PST will be charged on tobacco products.
- There will be a PST exemption for used zero-emission vehicles effective until 2027 and $79 million to continue to fund the addition of electric vehicle charging systems and to support vehicle pilot projects.
