More cuts expected in B.C. budget

British Columbians can look forward to a belt-tightening provincial budget Tuesday that the government says will cutexpenditures without causing taxpayers too much pain.

"What we have done in our budgets last year and [Tuesday's] will be no exception is look at ways we can cut back on the operating budgets of government," B.C. Finance Minister Colin Hansen said Monday. "That's where the belt-tightening is going to take place."

'This budget is about families' B.C. Finance Minister Colin Hansen

Hansen did not use a pre-budget photo opportunity to makethe traditional purchase ofnew shoes. Instead, he tried out some wheelchair rugby and handed over a $3,000 cheque to support wheelchair athletes in advance of this month's Paralympic Games.

He suggested that thegovernment will not be passing out lots of cheques for new programs in the coming fiscal year.

While the economy is recovering from the recession, government revenues still have not, Hansen said.

The leader of the opposition said she hoped the economic bindwould not lead the government to making the wrong decisions.

"I'm concerned that they're looking for short-term cuts that will mean long-term costs to our economy," said New Democrat Leader Carole James.

Last year, the government cut millions of dollars from lottery grants to community groups.

The finance minister said that this year he would try to make cuts in government operations without making life harder for B.C. residents.

Olympic legacy

"This budget is about families and support for families," said Hansen.

"It's also about building on the Olympic legacy and making sure that we really launch into this next decade with renewed growth [and] renewed job opportunities in the province."

James did not sound persuaded by Hansen's reassurances.

"I think we've enjoyed the Olympics but we also know that the government is going to bring down a budget that could make life more difficult for British Columbians, that could slow down our economic growth."

James also took a swipe at the harmonized sales tax (HST), due to be implemented by the province July 1.

The HST would have "a huge negative impact," said James.

While acknowledging the 12-per-cent HST is not popular, the government has shown no signs of backing down on the tax, which will combine the five-per-cent federal Goods and Services Tax and the seven-per-cent provincial sales tax.

The HST will not only bring in new revenues, but comes with a $1.6-billion bonus from the federal government, which will help bring down the provincial budget deficit, pegged last September at about $2.8 billion.

Hansen will deliver his budget speech beginning at 2:45 p.m. PT.