British Columbia

Premier says some deficits require spending as NDP prepares to table budget

Since becoming premier in November, David Eby has spent a large portion of B.C.'s $5.7 billion budget surplus and, while he knows he'll have less money to spend in the new fiscal year, he's promising "record new investments" in health care and housing.

David Eby and the B.C. government are set to table their new budget on Tuesday

An earnest-looking young man in a grey suit and white shirt speaks in front of a blurred-out background.
B.C. Premier David Eby speaks during a news conference in Vancouver on Feb. 5, 2023. He says Tuesday's provincial budget will continue his government's investments in health care, housing and affordability. (Darryl Dyck/The Canadian Press)

British Columbia's New Democrat government has been tackling some of the province's fundamental deficits in recent months by spending billions in surplus dollars, says Premier David Eby.

But while leaner economic times are on the horizon, Eby said the budget the government tables Tuesday will continue investing in health care, housing and affordability.

The government's recent throne speech acknowledged the projected $5.7 billion surplus from last year's budget won't be there this time around, but pledged "record new investments'' in health care and housing for middle-class families.

"Putting resources when we have the ability to do that now is important,'' Eby said. "There are people who say that we shouldn't be doing that, that now's the time to pull back.''

Eby, sworn in late last year to replace former premier John Horgan, said the budget introduced by Finance Minister Katrine Conroy will put people first.

"Maybe we should not be putting resources into disaster prevention,'' he said. "Maybe we shouldn't be putting resources into investing into municipal infrastructure for fast-growing communities."

"That would be different politically, perhaps between us and the other party, the B.C. Liberals.''

Budgets are about choices, Eby said Saturday.

Affordable housing, health care

"Our priorities are your priorities, and the budget will reflect them,'' he said at a news conference marking his first 100 days in office.

"We'll be building affordable housing, expanding access to health care, including mental health care and addiction treatment.''

The B.C. Legislature building during winter, with two people walking past the fountain at the entrance.
The B.C. government will reveal its new budget on Tuesday at the Legislative Assembly in Victoria. (Ken Mizokoshi/CBC)

Since taking office, Eby has introduced initiatives amounting to $2 billion in affordability measures, $1 billion toward municipal infrastructure projects and $500 million toward protecting rental housing.

B.C.'s economy is one of the strongest in Canada and the government will continue to invest in areas that help people despite the prospect of a reduced surplus, Eby said.

"Our government believes that there are other deficits, other than just fiscal, when we are talking about the future of the province."

Eby said government programs to help build recreation centres, pave roads and upgrade sewer systems also address local deficits.

"Making sure we are putting the resources into our communities to make them stronger helps pay off those deficits that were accumulated over many, many years," he said.

The premier sidestepped reports the government will soon introduce a $1 billion mental health and addiction treatment program, saying helping vulnerable people get opportunities to restart their lives has always been a top priority.

Gov't spending too much, says Liberal leader

Opposition Liberal Leader Kevin Falcon said the government is spending too much money in too many areas. He said he expects that to continue in the new budget without strategic overview or focus on results.

"I don't mind spending more money on programs, but it's got to be tied to improving results,'' he said. "Not just making announcements and spending money willy-nilly.''

B.C. has the worst housing statistics in North America, the highest fuel prices on the continent, the highest rents in Canada and the poorest health results in the country, Falcon added.

Kevin Falcon gestures at a podium. He is a white man wearing a suit and glasses.
B.C. Liberal Leader Kevin Falcon said he will be looking at the NDP's budget to increase access to family doctors, improve wait times at walk-in clinics and esnure people feel safe in their communities. (Chad Hipolito/The Canadian Press)

He said he will look to see if the budget increases access to family doctors, improves wait times at walk-in clinics and ensures people are safe in their communities.

"Those are the kinds of measurements that we would want to see improvement in, where four people a day are being attacked by random strangers in Vancouver,'' Falcon said.

"We'd like to see that reduced. That's what I would focus on.''

B.C.'s Green Party has recently called for a tax break to help businesses shift to a four-day work week pilot project.

The Greens also called for an increase in disability rates to above the poverty line, and for psychologist fees to be covered by the medical services plan.

Last year, B.C.'s budget was forecasted to post a $5.5 billion deficit, but a faster than expected economic recovery, updated federal income tax revenue data and improving natural resource revenues created a major turnaround to a nearly $6 billion surplus.