No, no, no, the B.C. budget is not balanced
CBC news today: "The B.C. government is promising continued balanced budgets”
And even the government says it.
This trickery should stop. Both the Liberals and the NDP keep trying to fool the people.
The Budget is everything the Government does with your money and others’ money.
It is made up of what it spends on operating, you know, keep the lights on, the maintenance of everything the government is involved in. It is called the current account budget.
Then there is what the government builds – the roads and bridges, the hospitals and schools, the court houses etc. it is called the capital account budget
Both together make up the budget.
What the Government is talking about is that it is balancing the CURRENT ACCOUNT BUDGET with a small surplus.
All the capital account budget is borrowed minus the little bit of operating surplus that is applied against it.
That’s why on page 63 of the government’s own documents we see: The Total Debt of the Province is $70, 638 Billion in 2019-2020, this past year.
It goes in this year 2020-2021 to $76, 392 Billion.
Then to $82, 063 billion in 2021-2022.
Finally, in the last year of the forecast period 2022–2023 the Government says the debt will be $87, 596 Billion.
That is from $70, 638 Billion to $87, 596 Billion over the forecast period.
That is just about $17 billion more —-in borrowing because all the revenue (except a tiny amount of surplus) was spent on operating.
So rather than a surplus each year in the budget there is a deficit.
If you just include what you spend to operate your house, then a small surplus.
But if you include what you spent on a new car, a vacation, other capital spending then you are in a deficit.
And don’t you have to calculate all your spending, just not some of it? Of course!
We all know that for there to be a real surplus the debt would not rise each year as we just saw in the budget documents.