B.C. government says upcoming budget will address 'unsustainable' deficits

B.C. Finance Minister Brenda Bailey will present a budget Tuesday aimed at slowing deficit growth, with the current fiscal year forecast at an $11.2-billion shortfall.

Finance Minister Brenda Bailey will unveil the provincial budget on Tuesday and has warned it will include difficult choices. The NDP government has recorded three consecutive deficits. The current fiscal year is forecast to show an $11.2-billion shortfall. The government says it intends to protect core services and keep personal income-tax rates competitive for people earning under $150,000. Key facts: - Brenda Bailey has said the budget will be tough and may be unpopular as it seeks to reduce the deficit. - The government expects to post another deficit this week, with the current year forecast at $11.2 billion. - Shannon Salter, head of the public service, described the deficit as "unsustainable" in an internal memo. - Rising labour costs and recent public-sector wage deals are cited as putting additional pressure on the province's finances. Summary: Tuesday's budget announcement will be watched for measures intended to slow the province's fiscal trajectory and to narrow the gap between revenue and spending. The government has signalled a priority of protecting core services while reducing the deficit. Undetermined at this time.