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.

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

Just Posted

Victoria council keeps its catered lunches at more than $10,000 per year

Two councillors tried to eliminate the expense, with widespread rejection

High-rise hotel proposed for downtown Victoria location

A 15-storey hotel could be coming to the Fort and Blanshard streets area

Rickter Scale: Where art thou, Sir John A?

The Rickter Scale is a regular column

Restrictions on unrelated occupants dominates Saanich council meeting

Saanich council sends issue of unrelated occupancy limits to public hearing

VIDEO: Trudeau insists Iran respect families’ wishes when it comes to burials

All 176 people on board the Ukraine International Airlines flight PS752 were killed

Greater Victoria Crime Stoppers wanted list for the week of Jan. 21

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Four things ‘not’ to do if you run into Prince Harry and Meghan in B.C.

Here is a list of some things you definitely should NOT do, according to the BBC

Successful end to search for kayakers along the Island river

Father and son located tired and cold, but otherwise OK

Vancouver Island man arrested after police seize suspected illicit drugs in Nanoose Bay

Car impounded after Port Alberni driver clocked travelling at more than twice the posted speed limit

Theo the 800-pound pig trimmed down and still looking for love on Vancouver Island

“He’s doing really well, lost quite a few pounds and can run now.”

Horgan unveils B.C. cabinet shuffle changes

Premier John Horgan has made three major changes to his cabinet

Dog reunited with Tofino owner, months after being taken from beach

Shannon Boothman ‘ecstatic’ at pet’s return after a tip leads to social media search

Most Read