B.C. set to deliver 4th consecutive balanced budget

British Columbia's Liberal government is set todeliver a fourth consecutive balanced budget Tuesday with sprinkles
of relief expected for first-time home buyers trying to get into ared hot real estate market.

Tweaks were also signaled on medical services premiums and morecash promised for social service programs in a throne speech lastweek that said the government will "resist the temptation to spendour way into trouble."

Incremental measures

Premier Christy Clark said the budget targets affordability onseveral fronts, but the measures will be incremental.

"The budget, what you'll see, is relief across the board forpeople in all different sectors," she told reporters last week in
Vancouver.

Clark said the government has already moved to help single-parentfamilies with cuts to their medical premiums, but a massive overhaulor elimination of the program -- called for by the Opposition NewDemocrats and the Green party -- is not in the cards, yet.

"It's antiquated, it's old, and the way people pay for itgenerally doesn't make a whole ton of sense," Clark said. "I
think in terms of wholesale change though, it's going to take alittle longer for us to work through some of that, but you will seesome things in this budget."

B.C.'s next provincial election is set for May 2017.

Medical premiums unfair says NDP

NDP finance critic Carole James said the medical premiums are anunfair tax that results in people earning $30,000 annually or morepaying the same rates as those who earn $1 million.

"We have to get rid of this unfair tax," she said.

James said B.C. families are being squeezed with fee and rateincreases, including hydro, insurance, tuition and medical premiumrates.

"The piece I'll be looking for in the budget is the issue ofaffordability for families," she said. "If you take a look at how
difficult it is for people right now, and the fees and services andincreased taxes this government has put on families, it is gettingtougher and tougher."

B.C. Hydro rates jumped four per cent last month and the CanadianTaxpayers Federation says B.C.'s medical premium rates haveincreased 39 per cent since 2009, from $108 a month for a familywith children to $150 per month now.

Finance Minister Mike de Jong said the medical premium payments,which collect more than $2 billion annually, account for about 14per cent of B.C.'s health budget of almost $19 billion.

He said the government is looking at being more flexible withmedical premiums but he rejects calls to make the payments part ofthe income tax system.

"I disagree with that," he said. "All you are doing iscreating the illusion health care is free, and it's not."

Growth in the forecast

De Jong said the major achievement of his latest budget remainsthe fact it will be balanced, an accomplishment most provinces andthe federal government won't realize this year.

The Royal Bank forecasts B.C.'s economy to lead Canada's growthrate this year at 3.1 per cent and 2.9 per cent in 2017. The B.C.government has forecast growth at 2.4 per cent this year.

Last fall, de Jong forecast the budget to include a surplus of$265 million, down about $20 million from the original estimate duelargely to falling resource revenues, particularly natural gas.