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

Abbotsford man charged with two child porn offences

Investigation against Jeremy Allen Willms, 42, began in April

Andy Sidhu appointed new chancellor at UFV

Third person to take on university role, first established in 2008

VIDEO: JRfm’s Holiday Fun Day sets up shop again at Langley Events Centre

Great music accompanies family fun as JRfm raises diapers and donations for Basics for Babies.

Abbotsford lawyer suing The Bay claims he was assaulted by security guard

Greg Lanning says incident started when he asked to have label removed from pants

Large drug bust yields fentanyl and carfentanil

Abbotsford Police launch investigation after spike in overdose deaths

Me Too At Work: Sexual assault and harassment in the B.C. workplace

Introducing an in-depth look at who is affected and what can be done

Quarter of students were away sick at Maple Ridge elementary school

Students and teachers at Maple Ridge school away with colds, flu.

Suspect in Revelstoke standoff killed himself: RCMP

Mohammadali Darabi, suspect in the Calgary homicide of his roommate, was stopped in Revelstoke

VIDEO: Salt Spring Islanders ferry piano to their floating home

Everyone enjoys a little music on the water, but not everyone has a piano on their boat

Clinton visits Vancouver, applauds Trudeau, celebrates Democrats’ win in Alabama

Clinton told crowd she cheered when Prime Minister Justin Trudeau appointed the country’s first gender-balanced cabinet.

Frustrated federal workers rally against Phoenix payroll system at B.C. MP’s office

Some employees out tens of thousands of dollars with ‘no end in sight’

Bomb detonated in Kamloops neighbourhood

Kamloops RCMP are investigating after an improvised explosive device was detonated Wednesday morning

No More Shootouts: Strong defence will be Canada’s backbone at world juniors

Head coach doesn’t want a situation where a hot goalie or a lucky bounce can determine a team’s fate

Maple Ridge becomes the mysterious haunt of the X-Files

Stars of sci-fi series show up in Memorial Peace Park

Most Read