Thursday, December 13, 2012

Leading Us into the Red: BC Liberals Fiscal Management

With only a few short months to go until the May 2013 election there is more well deserved bad news for the BC Liberals fiscal management.

So, while they keep ramming their "BC Jobs Plan" taxpayer-funded ads down our throat to the tune of $15 million we know that they are a lie and BC is not growing and stable for a growing majority of us. 

A government that has no ability to forecast the obvious - falling revenue streams and less funds in the coffers, is a government that is over.

Moody's reduces outlook on BC debt from "stable" to "negative"


Moody's Investor Service is lowering its outlook on BC's 39 billion dollars worth of debt, from "stable" to "negative".

Moody's says BC is taking a hit because of low natural gas prices.

It goes on to say despite the challenging financial situation, BC has the needed flexibility to recover.

B.C.'s debt rating downgraded by Moody's
CBC News, Dec. 12, 2012.

The prominent credit rating agency Moody's Investors Service has downgraded B.C.'s financial outlook, lowering the province's debt rating from stable to negative.

Moody's says the downgrade reflects B.C.’s worsening financial situation.

Recent drops in royalties from resources like coal and natural gas have lead to a spike in the deficit, and investors worry about the government's ability to avoid increasing the overall debt even further.

The province's second quarterly financial report last month indicated the province's annual deficit was projected to reach $1.47 billion, up from an earlier forecast of $1.1 billion.

Given the change in Moody’s rating, the B.C. NDP’s Bruce Ralston said he wonders how Finance Minister Mike de Jong can still claim to be on track to balancing the books.

"This kind of view of the budget-making process, I think, means it will be increasingly difficult for Mr. de Jong to be taken seriously in his boasts that he's going to balance the budget."

The forecast comes as a separate RBC Economics Provincial Outlook suggests B.C.'s economy will be tugged in opposite directions in 2013 — but growth should stay at about the same level as this year.

RBC projects provincial growth at about 2.3 per cent in 2013, only slightly above the 2.1 per cent forecast for this year, and close to the national average of 2.4 per cent. 

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