Finance minister optimistic about B.C. budget

B.C. Finance Minister Colin Hansen will table a budget update Tuesday that isexpected to include a host of spending cuts and a deficit much higher than the one projected in February.

But on Monday, Hansen was nothing but positive.

"I think this is going to be one of B.C.'s best budgets," he said.

"Actually recognizing we're coming through an economic downturn, it's going to lay the foundation for economic recovery and it's actually going to make sure we protect vital health care, education and social services at a very vital and difficult economic time."

Some predict the budget deficit could be anywhere between $2 billion and $4 billion, much higher than the $495 million the Liberal governmentforecast last February when they tabled their budget.

The Liberals say the deficit is a result of unexpected declines in government income tax and energy revenues. But Hansen maintains there is good news ahead.

"It's based on the assumption that we're at the bottom of an economic cycle and that we are going to see economic growth from here forward," he said.

"We anticipate it's going to be slow, but this is a budget that really builds a foundation for economic recovery."

Projections based on lies: NDP

The update comes at a time when the Liberals are facing public outcry over the introduction of a proposed harmonized sales tax, a rejuvenated Opposition and an ongoing economic downturn.

The New Democrats say the Liberals knew about the ballooning deficit and the harmonized sales tax, but didn't mention them during the May election campaign in which the Liberals were re-elected to a third term.

NDP finance critic Bruce Ralston said the government's earlier projections were based on lies, and public confidence in government has eroded.

"Budget lies have real consequences and we're starting to see those," he said.

Ralston has introduced a private members' bill proposing an independent officer of the legislature oversee the budget process and report to the public.

"Rather than say 'It's the minister of Finance on this side and the Opposition on this side,' [the independent officer] would be able to provide objective information."

But Hansen isn't keen on the idea.

"I think it's a bit strange coming from an NDP government that, when they were in office, overrode their own Finance officials and fudged the numbers that were going into the budget," he said.

Cuts to health care, the province's leaky condo program and the arts have already been made public.

But it remains to be seen where else the Liberals will scale back, and whether the budget will include scheduled pay increases for MLAs, cabinet ministers and Premier Gordon Campbell.