March 1, 2010

Deficit expected with today’s B.C. budget

The B.C. budget will be released later today and it is expected to include a $1.7 billion deficit. However, the provincial economy is expected to grow by about two per cent this year.

The worldwide economic slowdown has caught up with the province, as was evident when the 2009 budget update in September included a revised forecasted deficit of $2.8 billion.

The government also initiated a number of spending cuts with its revised forecast.

The recent throne speech outlined plans to offer deferred property taxes to families with children, education reforms and moves to regulatory reform, especially on the environment front.

Helmut Pastrick, chief economist with Central 1 Credit Union, said the 2010 Olympic Winter games are more about providing short-term economic gain, that may be just enough to keep the province jogging along until the good times hit again about four years from now.

He said he expects a slight hangover period immediately following the Games when the crowds leave and the construction, service and tourism sectors get back to reality.

“I think people are fairly well attuned to the fact that the Olympics are a temporary, transitory event and I don't think there should be any real disappointment, per se,” he said. “Factors greater than or other than the Olympics will come into play.”

Check back to find out what the budget means to B.C.’s construction industry.

-JOC News service

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