The province has revealed shrinking government revenues, a contracting economy, and a record deficit.

And that’s just the beginning of the bad news, according to University of the Fraser Valley political science professor Hamish Telford.

“Difficult as the budget was, there’s going to be more pain to come,” predicted Telford.

He explained that government ministries have been given less funding, and will have to cut programs, services and staff.

For example, university funding has been frozen across the province, but wage increases have already been contracted. The result will likely be hiring freezes or even layoffs, he said.

Telford said this kind of fallout will be seen over the coming months, as government agencies table budgets early in the year.

The B.C. Chamber of Commerce gave the budget a thumbs-up as a “realistic approach to difficult economic times.”

Abbotsford Chamber executive director David D. Hull said the deficit was no shock.

“We knew it was going to be big, and it certainly was,” he said. “Times are tough, and the government has taken proactive and aggressive steps.”

The B.C. government expects a deficit of $2.8 billion this year, with the red ink dropping below $2 billion next year and below $1 billion the year after.

The deficit for the current fiscal year is about five times the size promised by Premier Gordon Campbell, due mainly to a sharp drop-off in natural resource and income tax revenues. It would have been higher, except for a cheque from Ottawa to ease the transition to a harmonized sales tax.

To help keep up with soaring health care costs, Medical Services Plan (MSP) premiums are to increase six per cent in each of the next three years.

Telford said the MSP increase amounts to a tax hike, with much of the burden borne by business.

He estimates the controversial budget should not damage the Liberal Party over the long term.

“It certainly hurts their short-term popularity,” he said. “Their plan is to miraculously balance the budget by the time the next election rolls around.”