Massive
surpluses show bad planning; Prudence is fine, but by lowballing
revenues the province deprives the public of choices
Victoria Times Colonist
July 13, 2007
Comment
While Finance Minister Carole Taylor pats herself on the back
for B.C.'s record $4.1-billion surplus last year, it's time
to question how the government achieves this black magic, year
after year.
After all, while surpluses look good on paper, they also show
poor forecasting -- and a look back over the Liberals' reign
shows a worsening trend.
In 2006, Taylor reported a $3.1-billion surplus. A year earlier,
it was $2.6 billion. In fact, over the last five years, the
government has racked up over $10 billion more in surpluses
than it forecast in provincial budgets.
Taylor says it's due to fiscal prudence. That record of poor
forecasting goes beyond prudence and looks like inaccurate forecasting
by design, with a goal of making the government look good.
It also exhibits a worrying lack of vision.
Any unspent surplus at year-end goes toward reducing the province's
debt. That's useful.
But by failing to forecast accurately, the government has deprived
the public, through their MLAs, of the right to have an informed
debate about priorities. The budget forecast a $600-million
surplus. The actual amount was $3.5 billion higher.
Accurate forecasting would have allowed consideration of potential
uses for that money. Do we want more health-care funding, or
smaller class sizes in our schools? How about more money allocated
to reducing poverty or improving child care? Or tax cuts, for
that matter? These are questions that don't get raised, because
by lowballing revenue estimates the government can claim to
be surprised every year when the bottom line comes out blacker
than forecast…..
What is needed is a commitment to more accurate fiscal forecasting,
and a broad-based discussion about our priorities as a province.
After all, what is the point of the finance committee travelling
around the province every year, supposedly listening to British
Columbians, if the government subverts the process by hiding
billions of dollars?
The Liberals need to start listening more closely to what the
finance committee is hearing at the grass-roots level. The majority
of people want services, not just debt reduction: It's time
government gave them the choice they deserve. |