Provincial Government Unveils 2023 BC Budget
Today, BC’s Minister of Finance, the Honourable Katrine Conroy, introduced the BC Budget and Fiscal Plan for Fiscal Year 2023-24.
The focus of the Budget was summarized by Minister Conroy, “This year’s budget helps protect people who can’t afford today’s high prices and takes action on the issues people care about, like finding affordable housing and accessing health care.”
The foundation of the Budget is the economic growth projection for the province, forecast at .4% for 23/24, 1.5% in 24/25, and 2.4% in 25/26. Total spending this year is $81.2B, with a projected deficit of $11.8B.
Of note, the Ministry of Tourism, Arts, Culture and Sport has a contingency allowance for the coming year of $20M for tourism, as part of the province’s Pandemic Recovery Contingencies. We look forward to discussions with the Ministry about how those funds might possibly be allocated.
Another area of interest for our sector, given the labour shortage, is $39M over the next three years for skills training. This includes new short-term skills training grants for individuals, and new funding to assist small and medium businesses in dealing with labour market challenges. It is a clear recognition of the challenges faced by businesses who are managing a significant increase in costs, yet aren’t able to operate at full capacity because of labour shortages. While these programs are still under development, and we look forward to further engagement with the Ministry of Post-Secondary Education and Future Skills.
Other items in the budget include a boost in health spending of $6.4 billion over 3 years, targeted to cancer care, workforce development, and mental health and addiction service, and a $15 per tonne increase in the carbon tax, continuing each year at that pace until it reaches $170 in 2030. The expected large emitters output-based-pricing system will not be implemented until April 1, 2024, and further consultation will occur in the year ahead.
The Official Opposition BC Liberals criticized the record-high spending of the budget as further promises from the government without any tangible results. They noted the budget failed to make any progress in tackling the biggest challenges being faced by British Columbians – rising unaffordability, shrinking access to basic health care, and tackling rising crime.
For their part, the Greater Vancouver Board of Trade gave the budget a C- grade noting it was silent on an economic strategy to attract investment, increase innovation, and build B.C.’s competitive advantage. The BC Chamber of Commerce stated that the budget failed to address increasing costs facing BC’s businesses and the province’s competitiveness.
Ingrid Jarrett
President & CEO
British Columbia Hotel Association
