Finance Minister Carole James (Black Press files)

B.C. budget surplus expected to keep growing, Carole James says

Economic growth, strong employment pushes surplus forecast to $669 million

Increased tax revenues and steady economic growth have tripled the size of B.C.’s budget forecast for 2018-19, as changes made by the NDP government begin to show their effects on the province’s books.

Finance Minister Carole James released the first quarter financial results for the province Friday, projecting a surplus that has jumped to $669 million for the fiscal year ending next March.

The red-hot urban B.C. real estate market is “moderating,” resulting in declining revenue to the province, James said. The revenue fell by $53 million during the first quarter, from April through June, resulting in a projected drop of $250 million for the entire year.

That was more than made up by a projected increase of more than $1 billion in income tax revenue. Natural resource revenue is also projected to be up $495 million, mainly due to record high lumber prices.

Projected expenses are also up more than $1 billion, led by forest fire costs now estimated to be $477 for the current year. Emergency efforts for flooding also rose $162 million compared to the forecasts in the February budget.

James said the province’s employment picture continues to be the strongest in the country, helping drive the increase in income tax revenue. The threat is that people can get jobs but can’t find a place to live.

“If we don’t have affordable housing, people won’t stay in the province,” James said.

B.C. Liberal leader Andrew Wilkinson said the first quarter results are looking backward, and looking forward things are not so good.

“The NDP inherited a $2.7 billion surplus and the strongest economy in Canada, and now they’re projecting a slowing of growth, a 20 per cent drop in housing starts, which is a formula for widespread unemployment,” Wilkinson said. “And since they took office, the only job growth has been in government, with 10,000 new public sector jobs, and in the meantime 25,000 people in the private sector have lost their jobs.”

Another worry is trade, with the U.S. government threatening to pull out of the North American Free Trade Agreement and uncertainty continuing over lumber and other exports to the U.S.

RELATED: Trump, Trudeau mull walking away from NAFTA

One of the NDP government’s measures that has not yet shown up on the books is the introduction of an employers’ health tax on public and private payrolls over $500,000.

RELATED: Payroll, speculation tax tops B.C. municipal agenda

James reiterated that municipalities will not be getting a break on the new tax, which comes on top of reduced employee Medical Services Plan fees for 2019, before MSP premiums are phased out.

“Yes, they have a challenge in 2019, but we believe the benefit … of eliminating medical services premiums far outweigh the one-year challenge that they face,” James said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Last of southern Selkirk caribou relocated to Revelstoke area

One cow from the South Selkirk herd and two from the Purcells were moved this week

Pacific Insight to close in April

The remaining employees at the Nelson automotive manufacturing facility to be laid off

RCMP bike patrol coming to Castlegar

The pair of bicycles will be from a local shop and cost over $6,000 each.

Castlegar orders new fire truck to replace engine, rescue vehicle

The 2020 vehicle was purchased for about $750,000

Snow hosts available to help you explore the Rossland Range

Safe and responsible way to learn about Rossland Recreation Site

B.C. opioid crisis to get same world-renowned treatment approach as HIV/AIDS

A program that focuses on treatment as prevention will roll out Jan. 17

Former welfare clients still owed money, B.C. Ombudsperson says

Investigation found 2,600 people docked illegally for earning income

Prince George could get province’s second BC Cannabis Store

The first brick-and-mortar government retail location opened in Kamloops on Oct. 17

B.C. chowdery caught up in ‘rat-in-soup’ scandal to close

Crab Park Chowdery will be shutting down Jan. 20

Teen vaping is an epidemic: US government

E-cigarettes are now the top high-risk substance used by teenagers, outpacing cigarettes, alcohol, marijuana

Vancouver councillors unanimously approve motion declaring climate emergency

Vancouver joins cities like Los Angeles and London

‘I never said there was no collusion,’ Trump lawyer says

President Donald Trump’s lawyer Rudy Giuliani says he has ‘never said there was no collusion’

Winter weather advisory issued for East Kootenay

Up to 5cm of snow expected by the end of the weekend and up to 15cm over the next week

Body of Canadian miner found after African kidnapping

Kirk Woodman’s body was discovered 100 kilometres from the site where he worked for Progress Mineral Mining Company in Burkina Faso

Most Read