B.C. Finance Minister Carole James speaks at the B.C. legislature, June 23, 2020. (B.C. government)

First round of COVID-19 cost B.C. government $600 million

Fall of revenue included $285 million for ICBC

The first bite of the COVID-19 pandemic cost B.C. $595 million, with plunging tax revenues and soaring spending reversing economic growth this spring.

B.C. Finance Minister Carole James released the province’s audited public accounts Aug. 31, showing the initial impact of the coronavirus measures on the economy up to the end of March. A projected surplus was quickly replaced by a deficit of $321 million, $597 million lower than the surplus that had been predicted in the February 2020 budget.

The true impact of the pandemic is still unfolding. The province suspended business payments for sales tax, employer health tax and hotel tax, and has reserved $1.5 billion for further business relief may affect the final result.

The B.C. Liberal opposition has called on the NDP government to forgive the deferred taxes collected by struggling business. Surrey South MLA Stephanie Cadieux, the party’s finance critic, said B.C. is lagging behind other provinces in developing an economic recovery plan.

“Today’s public accounts showed that revenues were slowing well before the pandemic,” Cadieux said. “This is entirely due to the NDP’s lack of economic vision and continued reliance on raising taxes to fulfill their plans.”

The B.C. Liberal opposition has called on the NDP government to forgive the deferred taxes collected by struggling business. The finance ministry has already estimated that the current year’s deficit will end up at $13.5 billion by the time it ends next spring, with an additional $1 billion borrowed this summer to match federal aid to transit and other economic supports.

James said the Insurance Corp. of B.C. saw $285 million less revenue that forecast due to the early weeks of the pandemic, with people cancelling insurance or delaying renewals. The pandemic effects include $397 million less personal income tax revenue and $171 million less in property taxes.

James emphasized that B.C.’s credit rating and debt were in a strong position to deal with the pandemic.

“We started with zero operating debt, a triple-A credit rating and the lowest unemployment rate in the country,” James said.

RELATED: B.C.’s potential deficit spikes to $12.5 billion

RELATED: B.C. moves to allow three years of deficits


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureCoronavirus

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

Just Posted

A house on Highway 3A caught fire Sunday evening, Oct. 25, 2020.
House fire on Highway 3A in Keremeos

Neighbours acted quickly to help save home

x
Morning Start: Bubble wrap was originally intended to be wallpaper

Your morning start for Monday, Oct. 26, 2020

Roly Russell, the predicted MLA for the Boundary Similkameen, and his wife Christine Carlson celebrate on election night. (Contributed)
B.C. Votes 2020: Russell leads as election heads to mail-in counting

Russell is likely to replace incumbent BC Liberal Linda Larson

NDP headquarters on election night, Oct. 24, 2020. (Katya Slepian/Black Press Media)
ELECTION 2020: Live blog from B.C. party headquarters

BC NDP projected to win majority government – but celebrations will look different this election

B.C. Green Party leader Sonia Furstenau outlines her party's climate action platform at Nanaimo's Vancouver Island Conference Centre earlier this month. (News Bulletin file photo)
Green leader Furstenau declared victor in her home riding on Vancouver Island

Cowichan Valley voters elect freshly minted party leader for her second term

NDP Leader John Horgan celebrates his election win in the British Columbia provincial election in downtown Vancouver, B.C., Saturday, Oct. 24, 2020. THE CANADIAN PRESS/Jonathan Hayward
Horgan celebrates projected majority NDP government, but no deadline for $1,000 deposit

Premier-elect says majority government will allow him to tackle issues across all of B.C.

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

RCMP pictured at a motor vehicle incident during snowy conditions. (Phil McLachlan - Black Press Media)
West Kelowna RCMP investigate serious hit and run over the weekend

According to the police, a pedestrian continues to recover from serious injuries

École de l’Anse-au-sable. (Google Maps)
COVID-19 outbreak forces closure of Kelowna school

French-language school École de l’Anse-au-sable will remain closed until Nov. 4

Vernon Fire Rescue Services responded to a vehicle that crashed into a Vernon home on 17th Street Sunday, Oct. 25, 2020. (City of Vernon photo)
Three hurt after Mustang crashes into Vernon home

Vehicle occupants and one resident reported sustaining minor injuries in Sunday incident

A heavy police presence was spotted in Lumby, Monday, Oct. 26, 2020. (Facebook)
BREAKING: Police situation unfolding in Lumby

Police call for social media blackout in ongoing incident

NDP Leader John Horgan speaks with the owner of a barber shop while campaigning in Pitt Meadows, B.C., on Friday, Oct. 16, 2020. Campaigning was restricted by the coronavirus pandemic. THE CANADIAN PRESS/Darryl Dyck
Horgan’s B.C. majority came with historically low voter turnout

Barely half of eligible voters cast ballots in snap election

Five British Columbians and an Alberta man are facing charges linked to a 2018 bust of a Lumby clandestine lab. (RCMP)
Six charged in 2018 Lumby drug lab bust

Bust one of province’s biggest, costing hundreds of thousands of dollars, two men still loose

Game Cave’s owner, Trevor Sparreboom, is a self-described “hardcore video game collector.” (Jesse Day - Western News)
Gamers flock to new retro video game shop in Penticton

‘It’s like candy land for gamers,’ said one loyal customer

Most Read