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

Price for one-bedroom rentals in Kelowna jumped by 10.8 percent between October and November: Report

Out of 34 Canadian cities, report said Kelowna had highest monthly rent increase

Province covers medical costs for Kelowna boy with spinal muscular atrophy

Spinal taps for Rumi Green’s spinal muscular atrophy treatment cost $120,000 each

Warriors look to snap 4 game losing streak in Trail

West Kelowna takes on the Smoke Eaters Friday night

Funding sought for family of 15-year-old Summerland girl with cancer

Treatment will involve two weeks in hospital, followed by eight to 10 weeks recovery at home

Central Okanagan Journey Home Society names new executive director

Stephanie Ball will head the Journey Home strategy

VIDEO: More air-passenger rights go into effect this weekend

The first set of passenger rights arrived in mid-July in Canada

Best in business: North-Okanagan Shuswap companies named top 10 semi-finalists

Small businesses from Vernon, Kelowna, West Kelowna, Salmon Arm to compete for top spot

Sagmoen’s lawyer argues ‘abuse of power’ in police search

The trial of Curtis Sagmoen continued at the Vernon Law Courts on Friday

Swoop airlines adds three destinations in 2020 – Victoria, Kamloops, San Diego

Low-fair subsidiary of WestJet Airlines brings new destinations in April 2020

Aid a priority for idled Vancouver Island loggers, John Horgan says

Steelworkers, Western Forest Products returning to mediation

Navigating ‘fever phobia’: B.C. doctor gives tips on when a sick kid should get to the ER

Any temperature above 38 C is considered a fever, but not all cases warrant a trip to the hospital

Penticton resident allegedly has rear car tires stolen

The resident woke up today to find their back tires missing and their car on blocks

Woman struck, dog killed after collision on Highway 97

Speed is not believed to be a factor and alcohol has been ruled out

Province covers medical costs for Kelowna boy with spinal muscular atrophy

Spinal taps for Rumi Green’s spinal muscular atrophy treatment cost $120,000 each

Most Read