Finance Minister Mike de Jong shows how income and property transfer taxes (at left) were higher than expected in the first part of the year.

Retail, real estate help keep B.C. in black

Forest fire season tops $300 million in costs, but higher income tax, property transfer tax make up for it

VICTORIA – The B.C. government is on track for a surplus of $277 million for the fiscal year ending next spring, despite a costly forest fire season and a continued decline in revenues from  natural gas and other resource revenues.

Finance Minister Mike de Jong released results from the first quarter of the year Tuesday, showing the surplus down $7 million from the budget forecasts made in February. It showed revenues higher than expected from income taxes and property transfer tax, as well as continued rapid growth in retail sales and sales tax revenues.

Government spending is now forecast to be $381 million more than the budget, with costs of this year’s forest fire season above $300 million. That’s more than last year, but still below the total for 2009 and B.C.’s worst fire year, 2003.

With similar surpluses expected for the next two years, de Jong said the government has room for some “modest” spending increases on programs. But the main emphasis remains paying down operating debt left from the deficit years that followed the financial crisis of 2008.

De Jong said the current trend would see operating debt paid off by 2019-20, for the first time since the 1970s. Capital debt for major construction continues to grow, but not as quickly as the size of the economy.

The B.C. economy continues to add employment, but less than one half of one per cent per year. NDP finance critic Carole James said manufacturing and forestry are struggling while the B.C. Liberal government maintains its focus on natural gas exports.

“We’re almost at the four-year mark for the premier’s jobs plan, and here we are, continuing to see less than half of the number they predicted in terms of job growth,” James said.

The opposition has focused on the government’s reduced spending on post-secondary education, and charging adults $550 per credit for high school courses they take after graduation, in order to qualify for further studies.

“Now’s the time that we should be providing support for people who want to retrain, who want to go back to school, who want to look for for those job opportunities,” James said.

 

Just Posted

L’école des Sept-sommets in Rossland receives funding for water upgrade

L’École des Sept-sommets is one of six B.C. schools that will soon have access to healthier water.

No commercial room to let in downtown Rossland

There are no “for rent” signs posted in Rossland’s downtown.

Rossland man to receive Senate 150th Commemorative Medal

A Rossland man has been selected to receive a Senate 150th Commemorative Medal.

Rossland Courthouse undergoing $1.9 million in upgrades

The BC Ministry of Citizens’ Services is making $1.9 million in upgrades to the Rossland Courthouse.

78-year-old driver in Highway 22 accident outside Castlegar dies

The motor vehicle accident that closed Highway 22 on Nov. 20 resulted in a fatality.

VIDEO: Best photos of the Supermoon 2017

At its closest, the Frost Moon was about 363,300 km away from the Earth

B.C. actress’s role in Wonder brings perspective to the topic of bullying

Crystal Lowe plays bully’s mother in the Hollywood movie

Site C decision coming Monday

Premier John Horgan to announce fate of dam project at B.C. legislature

VIDEO: Vancouver Whitecaps acquire star striker Kei Kamara

Kamara has 103 goals and 39 assists in 298 appearances over 11 Major League Soccer seasons

Smartphone pedometers underestimate steps, but valuable health tool: study

UBC researchers found the iPhone underestimated steps by 21.5 per cent

VIDEO: ‘Last Jedi’ premiere kicks off with droids, Daisy Ridley

Latests Star Wars film premiered in style ahead of Dec. 15 theatre debut

UPDATE: Poor ventilation likely cause of carbon monoxide incident at B.C. farm

All 42 patients have been released from hospital, according to Delta Fire

BC Lions part ways with three coaches

These are the first personnel moves made by new general manager Ed Hervey

Most Read