Victoria plans to commit every dollar raised through the HST to health services funding once the controversial tax comes into effect July 1, 2010, according to B.C. Finance Minister Colin Hansen.

The provincial government budget tabled Tuesday will increase the Ministry of Health Services’ budget by more than $2 billion between 2009-10 and 2012-13. Health spending will be funded by the HST, medical services plan premiums, tobacco taxes, lottery revenue and federal transfers.

Besides dedicating HST to health-care funding, the government unveiled two initiatives targeted at helping working-class families: full-day kindergarten and a new property tax deferral program for homeowners with children under the age of 18.

Annual funding for voluntary full-day kindergarten for five-year-olds, which will be introduced in September, will rise to $129 million by 2012. Post-secondary funding remains at $1.88 billion in 2010-11.

Read the full article at the Business in Vancouver web site.