BC’s budget surplus shrinking heading into new year
Posted November 28, 2017 3:59 pm.
This article is more than 5 years old.
VICTORIA (NEWS 1130) – The latest financial update from the provincial government shows September’s predicted budget surplus has dropped partly because of our record wildfire season.
After delivering a quarterly report which suggests overall growth has been “stable”, Finance Minister Carole James says an extra $152 million has been spent on wildfire recovery.
“Fire management, for example, this is the forest fires — as bills continue to come in, as municipalities look at some of their costs and get those costs into us, ICBC income has deteriorated by another $139 million, so that’s again, an additional cost that we’re having to build in.”
James says other losses include income tax returns for 2016 dropping $643 million, but she’s not apologizing for reducing the forecast allowance only a few months after the NDP took power.
“We are making investments in the most vulnerable when it comes to income assistance, adult basic education and K-to-12 that was gutted by the previous government.”
James adds retail sales are up more than nine per cent, exports rose more than 17 and BC’s 5.3 per cent unemployment rate remains the lowest in Canada.
“The lowest in over nine years. BC again has shown strong job growth. We, in fact, right now, have the fastest growth in the country.”
Even so, she confirms expenses have risen almost $900 million since her first quarterly report in September and that means the surplus has dropped $56 million to $190 million.
James insists the province remains ‘on track for a balanced budget,’ but Opposition Finance Critic Shirley Bond says the New Democrats are burning through a $2.7 billion surplus built up by the BC Liberals before May’s provincial election.
She’s also asking how they plan to make good on major campaign promises including a $400 subsidy for renters and ten-dollar-a-day childcare.
