B.C. Finance Minister Carole James (Arnold Lim/Black Press)

B.C. budget surplus projected to grow despite real estate, ICBC dips

Finance Minister Carole James credits higher income tax revenue

The B.C. government’s budget surplus is projected to reach $1.35 billion by the end of the fiscal year in March 2019, Finance Minister Carole James says.

Presenting the province’s second quarter financial report Monday, James said B.C. continues to benefit from higher than forecast personal and corporate income tax revenue, with strong employment and 2.4 per cent growth in the economy, the highest in Canada.

The continued surplus comes in spite of an expected $150 million drop in property transfer tax revenue, and an additional $206 million decrease in net revenue from the Insurance Corp. of B.C. Forest fire and flood costs were up $160 million above last February’s budget forecast.

Growth projections are helped by the signing of a new Canada-U.S.-Mexico trade agreement, and a decision by LNG Canada to proceed with a natural gas export terminal at Kitimat.

James said the state of the province’s books halfway through the fiscal year allows her to state that the province’s direct operating debt has been eliminated. The previous B.C. Liberal government projected that as early as three years ago.

Capital debt continues to rise, financing construction of schools, hospitals and the NDP government’s housing plan, but James said the province’s debt-to-GDP ratio is now the lowest it has been since the 2008 financial crisis.

Income tax revenue is projected to come in $1.6 billion higher than forecast. Natural resource income to the province is also running $51 million higher as of September, the halfway point of the fiscal year.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Teach your kids to protect themselves from abuse

Two weeks ago The Spotlight published a story about a child sex… Continue reading

‘Schools are healthy’: IH medical health officer

Children have a low risk of catching and spreading COVID-19

2020 overdose death toll rises to 73 in the Okanagan

Just under half of the deaths occurred in Kelowna

COVID-19 picture ‘much clearer,’ says Interior Health president

As fall routines set in, IH CEO Susan Brown reminds public to be vigilant in preventative practices

BC Liberal Leader talks drug addiction in the Lower Mainland

Drug addiction and public safety a top priority says Andrew Wilkinson

Kamloops Mounties happened upon alleged gang-related robbery, kidnapping

Michael Mathieson is charged with armed robbery, unlawful confinement and kidnapping

Pandemic derails CP Holiday Train

Canadian Pacific will work to get donations to food banks while also producing an online music concert

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Interior Health reports five new COVID-19 cases

Across the region, 34 cases are active

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Penticton quadruple murder trial begins in Kelowna next month

John Brittain, 69, is facing three counts of first-degree murder and one count of second-degree murder

Historic BC Tree Fruits head office in Okanagan for sale

The company’s CEO said the decision was necessary due to a fickle fruit market

Most Read