British Columbia's government is staking its re-election on a broad range of tax cuts and spending increases on education and child-welfare programs in a 2017-18 budget that projects a fifth consecutive surplus.
Tax cuts being brought in by Finance Minister Mike de Jong include a promise to eliminate unpopular medical service premiums, starting with a 50-per-cent cut next year that will see a family paying the full premium saving up to $900 a year.
The 2017-18 budget also cuts the small business income tax rate to two per cent from 2.5 per cent, and will eliminate the provincial sales tax on electricity for business by 2019-20.
The $50.2-billion budget forecasts a surplus of $295 million, down from the $1.5-billion surplus forecast for the current fiscal year ending March 31.
Some notable spending increases include an additional $287 million over three years for the Ministry of Children and Family Development, including $120 million to address recommendations in a report on indigenous child welfare, after the death of children in government care.
The government is setting aside an additional $740 million over three years for education, which includes $320 million to cover the costs of ongoing negotiations with the teachers' union after the province lost a Supreme Court of Canada decision on class size related to special-needs children.
The province's Liberal government has been in power since 2001 and the next election will be held May 9.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.