Chapter Four

http://www.vancouversun.com/business/budget+keeps+tight+spending+except+health+education/2633497/story.html


Summary :


This article is about the our provinces spending habits.  British Columbia's government states that the "will return to balanced budgets within three years."  They are going to "clamp" down on spending throughout the province, except on healthcare and education.  Finance Minister Colin Hansen introduced a no-surprises budget that increases spending on heathcare and education by a total of $890 million. ($750 million on heathcare and $140 million on education) Because of this, the government imposed a virtual freeze on other spending.  This will result in a ten-per cent reduction in civil services over the next few years.  This plan supports both the economic recovery and managing the deficit.  The government is only spending where money needs to be spend and is going to try and cut down budgets for "non-priority" areas. 


Connections : 


This article relates to chapter four, because it is about how our taxes are spent.  Our province was affected by the recession, but it was also spending more money than it had, Wagner's law of increasing state activity.   The term "benefits-received approach" is portrayed in this article, because our tax money is coming back to us through a better education and health care.  The government will continue to indirectly charge taxes (indirect tax) through city services, HST, and other services.   The government will probably increase our taxes over time to keep our province running.   This article is all about how our taxes are spent and are going to be used and shows us what this chapter is about.  


Reflection : 


I think that the Provincial government is trying their best to recover from the recession.  This is good for our economy, health, and education.   I think that this is the first step to recovery.  This article showed me that the government is using our tax money wisely.   I think the government should continue to prioritize spending and stop spending in useless, or non-practical areas.   The only problems is that there people might be laid-off, so this means that some families won't have a sufficient income, but the government will give the family assistance.  So the taxes you pay, come back to you in different forms.   In Canada, we are lucky to have basic healthcare and a public education.  


After I finished writing this I noticed that this article is a few months too old, but I think that it is a very good article.  It shows us that the government is trying to stimulate our economy and watch their own spending for our benefit.