Kelowna

BC Finance Minister, Kevin Falcon, introduced the 2012 BC Budget in the Legislature Tuesday afternoon.

The government says the budget lays a firm foundation for the future, putting British Columbia on the right path to eliminate the deficit, protect public services, and build a more competitive economy that attracts jobs and investment.

Photo: Grant Scott - File photo

BC Minister of Forests, Lands and Natural Resource Operations Steve Thompson praised his party's fiscal approach after the release of the 2012-13 provincial budget Tuesday..

"I think it's a very important budget for the future of British Columbia," says Kelowna-Mission MLA and the current Minister of Forests, Lands and Natural Resource Operations Steve Thompson.

"One that's based on fiscal prudence and a commitment to a balanced budget in 2013-14. One that has controls on spending and maintains our leading lowest tax rates in BC."

The budget forecasts a deficit of $968 million for the next fiscal year before posting surpluses for the next two. On average, spending is forecast to rise by two percent over the next three years.

"I think this a very prudent approach and follows through on the commitment that we would balance by 2013-14. What we don't want to do is saddle future generations with deficit and debt," says Thompson.

The minister also pointed out the new:

• first time home buyer's credit
• housing transition rules as they relate to the HST
• seniors renovation tax credit 

He says these are very important steps to providing stimulus for the housing sector and building economic growth.

That growth is pegged at two percent per year on average and Thompson admits his ministry will be a key driver.

"Obviously the forest sector is one that will continue to be an important part of the BC jobs plan, and we're looking to continue to work with the industry to diversify markets, to continue to grow the market opportunities building on the work that's been done in the Asia-Pacific and China," says Thompson.

The budget also promises to undertake a review of the carbon tax, but not before the next scheduled increase.

"What has been announced is to proceed with the rate increase that is coming in July and to undertake a review of where that carbon tax policy has benefited the province and also where there may have been impacts. That work will be undertaken to make sure that we can keep our industries in a competitive position."

The small business tax rate is unchanged in this budget, although that will be revisited after the fiscal situation has improved.

Also, there was mention of a corporate tax increase in 2014.

"That's the ministers (Finance Minister Kevin Falcon) signal that that's a conditional potential for an increase if the prudent economic forecasts that are in the budget don't come to pass. I know we're hoping that, that's a step that won't have to be taken," says Thompson.

The one percent increase would see the province's corporate tax rate increase to 11 percent.