New study by Fraser Institute says BC government’s debt is growing under the radar

Vancouver, BC, Canada / (CKNW AM) AM980

The provincial government recently announcing a balanced operating surplus isn’t necessarily good news, in fact, it could be misleading.

A study released yesterday by the Fraser Institute shows BC’s debt will grow by 2 billion dollars this year, which could lead to several problems.

“Things could happen where interest rates go up, the cost of borrowing goes up, the government debt could spiral out of control. It could warrant things like increases in taxes, program spending cuts, or even more borrowing.”

That’s Resident Scholar in Economic Policy at the institute, Charles Lammam, who says the problem is that it’s only the interest from debt that gets factored into the government’s operating budget, not the principal.

He says that’s how the province’s growing debt remains hidden in it’s capital budget… something he hopes taxpayers will start noticing through the study.

Comments

  1. I have no confidence that the small town crooks that make up the BC Liberal party, or the empty heads at the NDP helm would even understand that failing to make efforts to pay down the massive provincial debt is just leaving a ticking time bomb in our economy. The Liberals seem to think they should get a medal for slashing spending on key programs so that they meet their projected spending targets….and the NDP would spend like there is no tomorrow’s row if they were given another chance.
    Neither of them have any thought to reducing the size of government or to long term planning that involves debt reduction.

  2. Agreed, ChrisM although I think both parties know exactly what they’re doing when it comes to Government debt. Not a single Politician would ever run their household debt the way they spend and run our Government debt. All they care about is maintaining votes. Unfortunately, it will all come crashing down around our ears soon and they know it.

  3. No more public sector wages, benefits or pensions obligations .till bc is out of debt and ALL private sector workers get the same benefits as the public sector. Who actually pays the taxes ONLY the private sector.

    • We should also get bonuses each year as well..Or at leaset be eligible…Also we should be able to have the chance to make an umlimited amount of money based on how many A’s our students get….

    • Not to worry. The LNG industry will grow the BC economy by over a trillion dollars, completely eliminate the provincial debt which will have grown by then to over $150 billion and create a prosperity fund worth over a $100 billion in the next two decades. We have Christy clark’s word for that.

      Debt will no longer be part of the vocabulary in BC. Unfortunately, I will not be around but my children and grandchilfren should live to see the wonderful day.

      Meanwhile, dan has some excellet suggestions to incorporate in the interim but I would note that you all will need to be patient-in fact, very patient.

  4. It’s not under the radar, it’s just that the growing debt isn’t reported regularly by the MSM. There is ample evidence online about this, but it’s usually put out there by bloggers, who the likes of Bill Good et al hold in contempt. The bunch in power now are the worst on record, yet they seem to get a pass at election time and in between which translates to always.

  5. BC needs a provincial party like the Sask Party in Saskatchewan or the Wild Rose Party in Alberta . . . and the folks need to wake up to the fact that a fiscally conservative, pro-growth and pro-resource development party . . . means increased revenue, 10s of thousands of good paying jobs. lower taxes and long term stability for future generations of BC residents.

    Following the “antis” will only make us just like Ontario and Quebec in short order . . . broke and poor.

    • Right on. We’re very good at demanding more from governments while taking less from taxpayers and complaining about it all at the same time.
      But the report makes a good point; principle and interest together should be considered as the debt. Spotlighting BC is odd though as this seems to be a common practice for past and present governments and other organizations.

      • Ron 26, I think all Governments do the same type of accounting. It should be changed so that we know where we really are regarding the debt.

        I do like Dale’s idea about another party.

        • Wow! Ron-26 and Dwight have seemingly added their voices to Dale-left coast’s call for another BC party to replace the Liberals. They obviously don’t believe our government is going far enough like stripping teachers of their constitutional rights, provoking strikes and bargaining in bad faith.

          Dale. Is your real name Fred? Just wondering…..with such an attitude, you should move closer to your sons.

          That said I’m not so sure that a party with more-extreme attributes exists anywhere in Canada. China, Russia, Iran come to mind if a dictatorship is what they have in mind.

          And predictably, no facts were presented to support their views.

  6. What can I say? It’s awful. The debt is already out of control. In all the news we read how the debt grows and that the cost of borrowing increases. I think that the debt is already a part of our culture. There are so many smart people work in the government and nobody can say what to do to cut the debt? I’m afraid that soon American economy will remind a disaster because we don’t pay our debt and only borrow more… The same I can say about consumer borrowing because to stay afloat people use cash advance loans, credit cards and other lending services, almost every one is in debt today.

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