Despite facing a $12.5-billion budget deficit because of COVID-19, B.C.’s finance minister is ruling out cuts in service levels to balance the books as the government is expecting $6.3 billion less in revenue during the 2020-21 budget due to the pandemic.

Carole James was asked about that possibility, but she says government support will be critical to build back B.C’s economy.

“You’re looking at over 600,000 people who’ve already received the emergency benefit, that really shows that the need is great, and we’ve seen the federal government as well extending their programs,” James said on Tuesday.

“We are not looking – because it wouldn’t be good for economic recovery right now – to pull back on spending and cause some more challenges in our economy.”

However, she says it doesn’t mean government will be spending money at will, noting the government has given itself the ability to put forward three years of deficit budgets, a plan which will be re-examined each year.

“We’ll be going into the budget process in the fall. We will be of course looking to make sure that every cent we spend is spent wisely, that is is spent on the priorities that we’ve had as government that are British Columbia’s priorities,” she added.

“We will be reviewing everything as we go into the budget process.”

James adds she believes that merely looking at balanced budgets over supports for people and businesses in the middle of a pandemic is irresponsible.

“To focus on that area rather than the people at the businesses and economic recovery that needs to happen is irresponsible,” she added. “We can start addressing some of the deficit by looking at how we grow government revenue. How we support further investment in our province.”

She did note that the $5 billion earmarked for COVID-19 relief in the province is unlikely to be added to at this time.

“I believe the $5 billion is enough now,” James said, however, noting that it is tough to predict how long it will take for the province to recover from the economic impacts brought on by COVID-19.

The province still plans to go ahead with $22.9 billion in capital spending over three years which was allocated in the 2020 budget for big capital projects like new schools, hospitals, bridges, and roads.

“This is going to serve us very well because it translates into huge investments,” James said.

The government also plans to announce more economic recovery measures as part of the $1.5 billion that was earmarked for economic recovery measures in September.