VICTORIA – Finance Minister Kevin Falcon said Monday he believes the federal budget is “generally positive.”
“As expected, the federal government has updated its budget with minimal changes. We think the federal budget is generally positive,” said Falcon, who was not available for an interview but issued a written statement.
“The commitment to return to a balanced budget remains on track – that’s good not only for B.C. but also for Canada,” he added.
Falcon also said he was pleased Monday’s budget projections are consistent with federal commitments on growth in the Canada Health Transfer.
The health transfer is scheduled to increase by six per cent annually. In 2011/12, B.C. expects to receive $3.8 billion in the Canada Health Transfer and $4.0 billion in 2012/13.
New Democratic Party finance critic Bruce Ralston said he, too, liked the commitment to increase health transfers by six per cent.
“That’s huge,” he said. “That’s important for British Columbia and I’m sure most provincial finance ministers will be happy with that.”
Ralston also said he liked the $400 million in the budget set aside for a one-year extension of the EcoENERGY Retrofit program.
But Ralston expressed significant concerns with other aspects of the budget, including the government’s new projections on returning to balance.
“I don’t accept what they’re saying about balanced budget,” he said.
“Given what the Parliamentary Budget Officer, Kevin Page, has said about their ability to balance the budget and their own projection, it seems there are very divergent views there,” he added.
Ralston said he was also concerned about signals from the federal government it will slash spending as part of an upcoming widespread review.
“Those unspecified budgetary cuts are a bit worrisome as to where they would come from,” he said.
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