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Finance Minister Kevin Falcon forecasts B.C. GDP growth of about 2 per cent for the province in 2012. (CBC)

Many world economies may be floundering, but B.C. is well-positioned to stay afloat, says provincial Finance Minister Kevin Falcon.

B.C. is doing relatively well because its exports are tied to Asia's growing economies and international investors see the province as a financial safe haven, Falcon told business leaders in a Vancouver speech Tuesday.

But he said more can be done and he's unveiled a blue-ribbon panel that will give the government advice on streamlining the provincial sales tax and making business taxes more competitive.

The panel, headed by University of B.C. chancellor Sarah Morgan-Silvester, will also examine municipal property taxes on business and look for ways to stop people and business from cheating on their taxes.

2-per-cent growth

The government is internally forecasting what Falcon characterized as a "conservative" two-per-cent GDP growth rate. The minister said the main bright spot for B.C. is its export market, which has bucked expectations.

Helmut Pastrick, chief economist with Central 1 Credit Union said Falcon's overall assessment of the coming year's finances and projections for growth are "reasonable" and agreed the province is "well-positioned."

Falcon invited the public to try their hand at working up their own version of the B.C. budget at the website www.gov.bc.ca/mybcbudget (Government of B.C.)Returning $1.6 billion to Ottawa for ditching the HST will create some economic drag, Falcon said, but noted he will reveal details in coming days on a plan being hashed out with the federal government to ease the shift.

"My hope is although we have to book the entire obligation now, I'm hoping that on a cash-flow basis we can manage it by paying it over more than one year," he told reporters.

DIY budget website

During his speech, Falcon noted his ministry is launching an online budget simulator that will help demonstrate what's required when shuffling the public purse.

The minister invited anyone who wants to give it a try to go online — towww.gov.bc.ca/mybcbudget — and go through the exercise of trying to balance the B.C. budget using a new budget simulator.

He said he’s willing to hear from anyone who thinks they’ve come up with some solutions to put the province into the black.

Public sector contracts

Falcon re-iterated the government will not be offering new money for wage increases when settling upcoming contracts with public sector employees.

But he said he was not ruling out wage increases if a plan can be devised to raise wages without increasing the bottom line.

One solution the union has proposed is keeping liquor stores open on Sundays, a move it says would generate as much as $150 million a year in new revenue.

NDP Opposition finance critic Bruce Ralston, who attended the luncheon, said it struck him that Falcon didn't once mention the premier's much-lauded jobs plan during his nearly 30-minute speech.

"So I'm really wondering what the message is in that, that he has no confidence in the so-called jobs plan?"

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