Dumped HST blows B.C. budget

[Merry]

It is going to take time to wind the HST down and return to the old system, during which time the government will continue to collect the HST. So that money, together with revenues already collected prior to the vote, should go a long way toward covering the cost of the transition. Added to which, the government has saved a fortune this year by not having to fund as much forest fire fighting as they budgeted for, so there's some more money that can be used for the transition.

I think the government are just fear mongering by implying that dumping the HST will blow their budget. Although it may be true that the budget has been blown, I don't think it's due to what's happening with the HST. Government mismanagement has undoubtedly played a role as well.

[NAB]

I think the real budgetary "Test" in BC will come following next February's federal budget. Much like the BC NDP had to deal with Paul Martin's slash and burn deficit elimination/debt reduction strategy during the latter 90's, this government is probably going to face similar starting next spring when Finance Minister Flaherty unveils his probably similar program. It will be interesting to see how the BC Liberal government decide to deal with it compared to what the NDP did back in the late 90's.

Nab