Provincial debt expected to rise to $ 66.4 billion by 2014- 15

But B. C.’ s debt- to- GDP ratio will only be 18.3 in that same period, ensuring B. C.’ s triple- A credit rating

British Columbia’s debt will balloon to $ 66.4 billion in 2014- 15, a whopping 30- percent increase from 201112, despite the government expecting to balance its budget by 2013- 14, according to the province’s budget released Tuesday.

The province’s deficit is now predicted to be only $ 2.5 billion in 2011- 12, lower than projected a few months ago. That number will drop to $ 968 million in the coming year and the government projects a surplus of $ 154 million for 201314, increasing to $ 250 million in 2014- 15.

During that time, debt will continue to increase but at a slowing rate, growing 13 per cent in 2012- 13 and only 5.8 per cent in 2014- 15, when it reaches $ 66.4 billion.

The key figure, though, is not the level of debt but the debttoGDP ratio, the government says.

“That’s the key measure that the bond rating agencies pay attention to,” B. C. Finance Minister Kevin Falcon told reporters during the briefing before the budget was released.

B. C.’ s debt- to- GDP ratio will be 17.6 per cent in the coming year and peak at 18.3 in 201415 before turning down again, the province predicts.

The ratio in the United States is now 73 per cent, France’s is more than 80 per cent and in Greece, it’s 166 per cent, Falcon said in his budget speech.

As a result, credit rating agencies rate B. C.’ s debt triple A, the same rating the Canadian government receives, but better than the United States, which is at AA+ and Ontario, which has a credit rating of AA-, according to the budget documents.

The higher the credit rating, the lower the borrowing costs to the province.

But 18.3 per cent is still a far cry from the 13.3- per- cent debt- to- GDP ratio the province enjoyed in 2008- 09.

“When we got hit with the international global meltdown that was the right time for us to invest, particularly into key sectors like health care, education and transportation, with the most significant capital investment program in the history of British Columbia,” the finance minister told reporters.

And that capital spending will continue in the coming year, he added.

B. C. was able to invest in those capital projects because it had the fiscal room to do so, he said.

In the coming year, B. C. still has “a very robust capital plan,” he said.