Vaughn Palmer: Numbers contradict B.C. finance minister's optimistic tone

VICTORIA — Finance Minister Josie Osborne attempted a positive spin in her first budget update, starting with a claim that “B.C’s economy continues to be resilient, with stable growth in the outlook.”

Alas for the new minister, she was contradicted by key numbers in the quarterly report that accompanied her presentation in the legislature press theatre on Monday.

February’s budget forecast a meagre 1.3 per cent rate of economic growth for the year. Turns out that was overly optimistic.

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Osborne lowered the forecast by about a third to 0.9 per cent, which does not say “strong” and “resilient” to anyone.

Housing starts were down. Population down. Jobs down. Unemployment was up.

Osborne inherited a record deficit forecast of $13.3 billion from her predecessor, Brenda Bailey. Monday, she increased it to $13.8 billion.

As NDP finance ministers are wont to do, Osborne noted in passing that the budget included $5 billion in unspent contingency funds. It is the NDP way of holding out the hope that the unspent portion might be used to reduce the deficit at the end of the year.

Except the New Democrats treat contingency funds like giant blank cheques, to spend as they see fit on topping up existing programs and creating new ones.

Last year’s budget included $4 billion for contingencies and the government spent 85 per cent of it. Only a small fraction was spent responding to genuine emergencies like wildfires and floods.

Osborne fell back on another well-travelled NDP line, namely that B.C. “debt metrics” are better than those of other large provinces. (Alberta excepted).