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.

Just Posted

Convicted animal abuser to return to B.C. court May 21

Catherine Jessica Adams is facing a breach of probation charge

First Terrace Speedway race day of the year

The annual Mother’s Day Season Opening Races brought in crowds

Concerns over democracy as Senate committee votes to nix oil tanker ban

Critics of the Senate’s recommendation to kill Bill C-48 say it goes against popular will

Northwest Fire Centre open burn ban lifted

Recent rain, cooler temperatures have lowered the region’s fire risk

Telkwa pot plant application passes review

Cannabis company claims new Health Canada regulations are working in its favour

QUIZ: Test your knowledge of Victoria Day

How much do you know about the monarch whose day we celebrate each May?

Facebook takes down anti-vaxxer page that used image of late Canadian girl

Facebook said that the social media company has disabled the anti-vaccination page

Search crews rescue kids, 6 and 7, stranded overnight on Coquitlam mountain

The father and two youngesters fell down a steep and treachorous cliff while hiking on Burke Mountain

Raptors beat Bucks 118-112 in 2OT thriller

Leonard has 36 points as Toronto cuts Milwaukee’s series lead to 2-1

‘Teams that win are tight’: B.C. Lions search for chemistry at training camp

The Lions added more than 50 new faces over the off-season, from coaching staff to key players

Rescue crews suspend search for Okanagan kayaker missing for three days

71-year-old Zygmunt Janiewicz was reported missing Friday

B.C. VIEWS: Reality of our plastic recycling routine exposed

Turns out dear old China wasn’t doing such a great job

Carbon dioxide at highest levels for over 2.5 million years, expert warns of 100 years of disruption

CO2 levels rising rapidly, now higher than at any point in humanity’s history

B.C. ferry stops to let black bear swim past near Nanaimo

Queen of Oak Bay brakes for wildlife in Nanaimo’s Departure Bay

Most Read