New infrastructure big part of B.C. recovery budget

The British Columbia government plans to spend $8.7 billion over three years on infrastructure as well as on supports for families and businesses to building the economic recovery from COVID-19.

In its budget presented today, the provincial government is promising to spend $3.5 billion more than last year on infrastructure to build hospitals and schools, and improve transit and roads, creating 85,000 jobs.

Finance Minister Selina Robinson says the deficit is projected to be $9.7 billion, lower than the $13.6 billion predicted last fall, based on higher than expected revenues and lower government spending.

There will also be $3.1 billion spent over three years on the health-care and mental health systems, including $500 million to address the overdose crisis and youth mental health.

Robinson says while economic recovery will be uneven, the government predicts GDP growth to reach 4.4 per cent this year and 3.8 per cent in 2022.

More than 35,000 families now have $10-a-day day care and the province plans to double that while boosting the wage enhancement for early childhood educators to $4 per hour.

Highlights of the British Columbia budget presented Tuesday:

$26.4 billion capital plan over three years to build hospitals, schools, transit and roads while creating 85,000 jobs.

$500 million for mental health and addictions services, including targeted funding for youth, 195 treatment and recovery beds for substance users and an expansion of overdose crisis response programs.

$11 million to more than double the number of $10-a-day child care spaces with 3,750 spaces offered through 75 additional ChildcareBC Universal Prototype Sites.

$1.6 billion for poverty reduction strategies, including a record increase of $175 per month increase for income and disability assistance rates, and the first increase of $50 to the Senior’s Supplement since it was introduced 34 years ago.

$506 million to support CleanBC, including the expansion of electric vehicle charging stations, electrification of more school buses and ferries, and the elimination of the PST on e-bike purchases.

Additional revenue and lower spending puts the deficit for 2021-22 at a projected $9.7 billion, lower than the $13.6 billion forecast in December.

$26 million to make transit free for children ages 12 and under, with the first phase launching in Metro Vancouver in September.