The B.C. government has been given five years to repay the federal government $1.6 billion in HST transition money. The federal government has also agreed to waive any interest charges over the term. A B.C. government statement says the extended repayment plan saves the
provincial debt interest costs that can now go towards protecting core
provincial services. The province started negotiating a repayment plan shortly after B.C.
residents voted down the controversial harmonized sales tax last year. The full cost of the $1.6 billion will still be on the B.C. government's books for the 2011-2012 fiscal year. Finance Minister Kevin Falcon has said repaying the funding will have an economic drag on provincial finances.
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