The B.C. Liberal plan to limit deficit spending will damage the province's fragile economy, according to a report published today by the Canadian Centre for Policy Alternatives.

The paper suggests that should government try to cut $1 billion in spending, about 18,000 jobs will be lost and the provincial GDP would drop by $1.7 billion.

"This isn't your garden variety recession," said CCPA economist Iglika Ivanova. "It has hit us very fast ... and that's why government involvement is necessary."

Ivanova cited the U.S. multi-trillion dollar recession spending plan as a government understanding its essential role in expediting economic recovery.

The Campbell Liberals said in Tuesday's throne speech cuts were coming to government agencies, such as TransLink and B.C. Ferries, health authorities and school boards along with a public sector wage freeze.

"Withdrawing money from the economy during a recession actually deepens the recession," Ivanova said.

"Government spending has ripple effects in the economy."

Dharm Makwana reports for Vancouver 24 hours.