Deeper and deeper into debt...thanks Christy!

[Urbane]

Why aren't contractual obligations part of the provincial debt, IYO? (And please, no bafflegab.)

I'll let BC's auditor-general, Carol Bellringer, answer your question:

"The difference being that debt is money that government has already borrowed and must repay in the future. … Contractual obligations are agreements to obtain goods or services in the future. There is no liability for payment until the goods or services are received, and therefore no debt.”

[Urban Cowboy]

*removed*

[mr.bandaid]

However, there is going to be a lot of debt added when the contracts are cancelled by the NDP/GREEN party and they have to pay for breaking those contracts.

[bob vernon]

No, they can just do what Christy has always done, and Gordo before her. Just get ICBC, BCHydro, BC Ferries, and BCBC to borrow a ton of money and give it to the gummint. It goes into general revenue, but doesn't count as debt because it was borrowed by crown corporations. It's called Gordo bookkeeping. The people are still stuck with the debt, but the gummint can say the budget is balanced. Christy did this for years.

[George+]

The Liberals are simply trying to distract from forensic audits that are about to appear.

Right, Urbane?

[mikest2]

The Liberals are simply trying to distract from forensic audits that are about to appear.

Right, Urbane?

Audits don't happen overnight, don't expect any results either way until next year at the earliest. Until then it's simply another accusation.

[hobbyguy]

The myth of ICBC and BC Hydro borrowing money to support government finances is just that. It is a hypocritical attack talking point invented by the BC NDP - because they wanted to con voters.

The budget is balanced based on revenues minus expenses. It is an OPERATING budget.
Then there is the CAPITAL INVESTMENT budget, entirely separate. That is where provincial net debt should come from. Things like site C which will, according to World Bank averages, generate about 14% ROI (wish I could get that return!) and the Bennett Bridge.
The Capital budget will most likely, but not always add to the net provincial debt.

That's how it is supposed to work. Balance the operating budget, borrow if and as necessary to advance investments in the province's future.

From time to time, as circumstance dictate (like a recession), the government may run an Operating budget deficit. That ISN'T "good" debt, But stuff happens. Operating deficit debt returns nothing except more debt burden and should only be a last resort.

So yes, the BC Liberals have added to the provincial net debt. Things like the Bennett bridge, the Port Mann Bridge, the Sea to Sky highway, improved rapid transit, new LNG powered ferries etc. All things we can touch and feel and improve the lives of BC residents.

Now we get the BC NDP, once again going off on tangents, promising the moon for nothing. IT won't happen. The Operating budget can NOT be balanced with the so called platform of the No Dang Plan party. They are offering Champagne on a Beer budget = and will rack up debt for no net tangible results.

Just like the last BC NDP party that ran up operating deficit after operating deficit while having the province circle the drain. The only tangible benefit from all the debt the BC NDP ran up in the 1990s? The only one I can think of is the Island Highway. That's it - everything else was either stuff that they turned to mush (like the fast ferries) and constant operating deficits.

And yes, it is the SAME power players that were there in the 1990's. Hapless Horgan and Devious Dix.

No clue at all about good governance. This is an acceptable record for the BC Libs http://www.rbc.com/economics/economic-reports/pdf/provincial-forecasts/prov_fiscal.pdf and an unacceptable one for the BC No Dang Plan party.

Yes, the BC Libs went too light on investments in social capital, but it is still light years better governance than the BC No Dang Plan party.

[George+]

More Lieberal myths.

Get on with governing.

Recall the legislature.

[hobbyguy]

George - that is the way government finances work. Every province. The federal government.

Are you saying that is not correct, or just taking a partisan deliberate non factual approach?

[George+]

Factual.

The Lieberals were a total screw up.

Huge debt to be revealed shortly. Will make even you cringe.

Clark lived in the land of fairies and...unicorns.

Just think about the added debt.

Must get on with governing.

[Veovis]

Factual.

The Lieberals were a total screw up.

Huge debt to be revealed shortly. Will make even you cringe.

Clark lived in the land of fairies and...unicorns.

Just think about the added debt.

Must get on with governing.

Worst Haiku Ever.

Didn't even contain facts

Sad faceless rants again.

[lasnomadas]

Thank you, Urbane. But it doesn't make me feel any better knowing that my children, grandchildren, and great-grandchildren will be paying off the debts incurred by the Christy Liberals.

[Urban Cowboy]

Thank you, Urbane. But it doesn't make me feel any better knowing that my children, grandchildren, and great-grandchildren will be paying off the debts incurred by the Christy Liberals.

I can understand why, given you don't know the difference between debt, and contractual obligations.

I'll help you out a bit. Your cable bill for 2020 is NOT a debt. Your property taxes for 2020 are NOT a debt.

[lasnomadas]

removed

[Urbane]

previous pots removed
No need to make it personal. The AG laid it out quite clearly in an easy to understand manner and OT provided you a couple of good examples. Contractual obligations are not debt.