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

Parksville’s Knox United Church to host warming centre

Facility to open on Thursdays as step to help area’s homeless

New BC Cannabis store opens up shop in Parksville

Outlet at Wembley Mall open seven days per week

‘We could see fire all over the landscape’: Parksville man recounts helping crews in Australia

Kevin Cochrane of the Coastal Fire Centre spent 38 days Down Under

Remote surveillance helps RCMP nab suspect following Parksville break-in

Stolen items returned after business owner takes quick action

PQB News editor battles cancer through pioneering treatment

Vancouver Island rallies around JR Rardon and family during stay in Seattle

Fashion Fridays: The basics you need for your body type

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Here’s what Canada is doing to stop the coronavirus from getting in

Health officials are monitoring multiple possible cases in Canada

‘I would not go’ to China says B.C. traveller concerned about coronavirus

Alice Li said she goes to China every other year but would scrap any travel plans

Royal Canadian Legion expels B.C. member for wearing unearned military commendations

‘Stolen valour is stolen service and it’s just totally wrong’

‘Latte-sipping urbanites’ need to realize value of mining in B.C., association head says

Industry generates a total of $3.9 billion in sales of goods and service across the province

Uber, Lyft approved for ride-hailing in Lower Mainland

Kater Technologies Inc.’s application was rejected

B.C. man rescued after getting trapped headfirst in well as water level rose

The rescue involved crews from Oak Bay and Saanich

Investigators in wildfire-torn Australia head to site of B.C. airtanker crash

The B.C. government sends condolences to Port Alberni-owned Coulson Aviation

RCMP investigating sexual allegation against Lower Mainland police officer

Delta officer suspended while the alleged off-duty incident involving a co-worker is investigated

Most Read