Jul. 14, 2020

BC Total deficit $35.4 billion, not just $12.5 billion operating account

After the B.C. Fiscal Update on Tuesday, CBC, Global and the rest of the media just mouth the government line. They do not give you the full deficit story. Mental capacity is at an all-time low in the media. 

You’d think they would really try to give the full financial picture wouldn’t you? Especially when they have been reminded many times about this sin of omission. And especially when the capital budget is almost twice the size of the operating account, Covid and all. 

Of course, they are technically correct when they use the words “BC Budget deficit due to Covid is $12.5 Billion. “

“Due to covid” masks any mention of the capital spending. Just the operating side of the budget since it was all operating spending for Covid. 

However, the government in the Fiscal Update was forced to mention capital spending near the end of the update, on Page 8 of the 13 pages of the update. It says:

“Budget 2020 included $22.9. billion in taxpayer supported capital spending. . . “

So, BC taxpayers, a $12.5-billion operating deficit plus $22.9-billion capital equals $35.4 billion. That is your deficit this year. 

That is what B.C. will be borrowing this year. This is how much our debt will increase this year. 

As the late, great radio broadcaster Paul Harvey used to say: “Now you know the rest of the story!”