British Columbia's 2012 budget forecasts a deficit of $968 million during the next fiscal year, a number that would bring total debt in the province to $57.6 billion.
The budget was released Feb. 21 with expectations that a struggling economy could necessitate less aggressive spending.
"There is a new paradigm in today's world economic environment. It demands prudent fiscal discipline," said Finance Minister Kevin Falcon about the document. "We continue to hold the line on spending and will achieve a surplus in 2013-14."
Tuesday's budget predicts modest growth in the province during 2012, pegging the number at 1.8 per cent.
The risks facing B.C.'s economy, the government said, include renewed recession in the U.S., lower than expected Asian demand for provincial exports and the spread of European sovereign debt.
The government maintained its small business and general corporate tax rates, at 2.5 and 10 per cent respectively. Should conditions worsen, Falcon said, a decision will be made to institute a one per cent hike in the corporate levy for 2014.
"Our corporate income tax rates are now among the lowest in the country and G7 nations," he said. "I believe we can balance without the increase."
Powell River - Sunshine Coast New Democrat MLA Nicholas Simons said he understood the need for fiscal restraint in trying economic times, but added that he felt the government's spending priorities were "misplaced."
"In context, it's just about misplaced priorities, not fiscal conservatism, though they'd like to paint it that way," Simons said. "I just worry that the future prosperity is being put in peril by the lack of investment in the things that will make us stronger."
Areas where Simons said more investments are needed included forestry, seniors care, Community Living BC and skills training.
"I think it's important to always be looking at the bottom line, but that doesn't explain their choices to spend on what could be considered vanity projects," he said.
A mixture of reviews from various advocacy groups met the release of the 2012 budget.
The Canadian Federation of Independent Business (CFIB) said the budget provides reassurance to small business, but lamented the possibility of a future corporate tax hike.
John Winter, president of the B.C. Chamber of Commerce called the budget "prudent," predicting it would ward off external risks faced by the economy.
"The government is to be commended for its responsibility in holding the line on spending and bringing a targeted approach to spending increases," Winter said.
Ben West of Canada's Wilderness Committee called the plan "alarmingly short-sighted and irresponsible" in dealing with climate change.
For the Council of Senior Citizens' Organizations of B.C. (COSCO), the budget was also a disappointment on the heels of the ombuds-person's report that called for increased home care.
"The $15 million for non-medical home support is an insult to seniors," said COSCO president Art Kube.
