B.C. Finance Minister Selina Robinson speaks to the legislature’s pre-Christmas session to approve more COVID-19 spending, Dec. 10, 2020. (Hansard TV)

B.C. Finance Minister Selina Robinson speaks to the legislature’s pre-Christmas session to approve more COVID-19 spending, Dec. 10, 2020. (Hansard TV)

Rising income, real estate tax hold B.C. deficit at $13.6 billion

Cost of next COVID-19 payments up to $1.7 billion

B.C.’s deficit is forecast to rise to a record $13.6 billion for the current year, with some signs of recovery offsetting another $2 billion round of COVID-19 spending debated in the legislature this week.

Finance Minister Selina Robinson released the province’s second quarter economic update Dec. 17, two months late as the government struggles to keep up with the demands of the coronavirus pandemic. It shows an increase in the forecast deficit, $850 million higher than the first quarter forecast. B.C.’s economy is now expected to shrink by 6.2 per cent for 2020, with a “partial recovery” forecast for 2021.

The cost of sending $1,000 in borrowed money to almost all B.C. households whether they lost income in the pandemic or not, an October election promise from Premier John Horgan, is offset by better-than-forecast income tax and property transfer tax revenue, as well as gains in net income for Crown corporations such as B.C. Hydro and ICBC.

Estimated cost of the payments has been revised upward, from $1.45 billion in the NDP election platform to $1.7 billion in the latest update. It pays $1,000 to families with 2019 income up to $125,000, and $500 for single individuals who made up to $67,500 last year. Reduced payments are to go to families earning up to $175,000 and individuals making up to $87,000 in 2019.

B.C.’s export revenues are down eight per cent so far this year, but the forecast for natural resource revenue has increased by $156 million, mainly due to increased prices for lumber and natural gas.

The biggest boost to forecast revenues is $479 million more in property transfer tax, driven by rising real estate prices and an active market in recent months. Commercial Crown net income is revised upward by $363 million from the first quarter.

“ICBC net income is up $324 million, mainly due to savings from lower claims costs, Liquor Distribution Branch net income is up $35 million, reflecting a shift in consumption to home purchases, and this is partly offset by weaker B.C. Lottery Corp. income due to temporary casino closures,” Robinson told reporters Dec. 17.

RELATED: ICBC applies for 15% rate decrease as lawyers pushed out

RELATED: B.C. tourism calls for ‘bridge’ recovery from COVID-19


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureBC politicsCoronavirus

Just Posted

A worker at Wee Geordies Liquor Store held at knifepoint on Wednesday at 3:30 p.m. A female entered the store and grabbed a bottle of liquor and produced a knife and demanded money. She was not located. (Wee Geordies video surveillance screenshot)
VIDEO: Two stores robbed on the same day in Kitimat

The first incident was at 5:45 a.m. and the second incident occurred 3:30 p.m.

Do Your Part Recycling Co is celebrating 15 years of its operation in Terrace this May. (Binny Paul/Terrace Standard)
How a homegrown Terrace business became a vital cog in the regional recycling initiative

Do Your Part Recycling owner Kasey Lewis on how they started 15 years ago

Construction continues on Coast Mountain College’s student residence on May 12, 2021. (Ben Bogstie/Terrace Standard)
VIDEO: Work continues on major projects at Coast Mountain College

Price tag of $35 million set for housing, substantial renovations

Terrace city council gave first and second reading to zoning amendment bylaws for the proposed transload facility located next to Keith Ave. (Image courtesy Hatha Callis, Progressive Ventures Group)
Next inland port public hearings set for June

Terrace council gave first and second reading to establish new zone, rezoning application

Skeena Valley Farmers Market will host Northern Health’s COVID-19 vaccination booth on May 15. ( Skeena Valley Farmers Market/Facebook)
Northern Health to set up COVID-19 vaccine booth at Skeena Valley Farmers Market

The booth will be set up on the south side of the market towards Park Ave. on May 15

‘COVID to COVID’ lung transplant patient says he’s grateful at a May 14, 2021, news conference in Chicago. (CP screenshot)
‘COVID to COVID’ lung transplant patient grateful

Renato Aquino became sick from COVID-19 in May 2020

Capt. Jenn Casey died in a crash just outside of Kamloops, B.C., on May 17, 2020. (CF Snowbirds)
Snowbirds to honour Capt. Casey, who died in B.C. crash, in 2021 tour

Tour will kick off in Ontario in June before heading west

A pedestrian wearing a mask to curb the spread of COVID-19 is bundled up for the cold weather as snow falls in downtown Vancouver on Saturday, February 13, 2021.THE CANADIAN PRESS/Darryl Dyck
Cold front hits southern B.C., snow possible in mountain passes: Environment Canada

Much of B.C.’s southern interior will see temperatures plunge from highs of 30 C reached over the weekend

A vial of AstraZeneca vaccine is seen at a mass COVID-19 vaccination clinic in Calgary, Alta., Thursday, April 22, 2021. Dr. Ben Chan remembers hearing the preliminary reports back in March of blood clots appearing in a handful of European recipients of the Oxford-AstraZeneca COVID-19 vaccine. THE CANADIAN PRESS/Jeff McIntosh
Science on COVID, VITT constantly changing: A look at how doctors keep up

While VITT can represent challenges as a novel disorder, blood clots themselves are not new

Poached trees that were taken recently on Vancouver Island in the Mount Prevost area near Cowichan, B.C. are shown on Sunday, May 10, 2021. Big trees, small trees, dead trees, softwoods and hardwoods have all become valuable targets of tree poachers in British Columbia as timber prices hit record levels. THE CANADIAN PRESS/Jen Osborne.
Tree poaching from public forests increasing in B.C. as lumber hits record prices

Prices for B.C. softwood lumber reached $1,600 for 1,000 board feet compared with about $300 a year ago

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

People shop in Chinatown in Vancouver on Friday, February 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver community leaders call for action following 717% rise in anti-Asian hate crimes

‘The alarming rise of anti-Asian hate in Canada and south of the border shows Asians have not been fully accepted in North America,’ says Carol Lee

Most Read