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

BV Concert Association presents Montreal’s Huu Bac Quintet

The Huu Bac Quintet play the Della Herman Theatre Nov. 24.

Terrace to Hazelton bus service launched

First trip of BC Transit’s latest inter-community route set for Nov. 20

Marleau and Sikkes chosen as HBMR Legendary Locals

Hudson Bay Mountain Resort has double the legends this season with a pair of 83-year-old skiers.

UPDATE: Highway 16 is open with delays due to avalanche control

DriveBC has opened the highway between Prince Rupert and Terrace but expect delays

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

B.C. reporter reflects on covering Charles Manson

Charles Manson, leader of a murderous cult, died on Sunday at 83

ICBC overbilling for crash repairs not the problem, dealers say

Collision repair shops reject union claim of inflated costs

B.C. groups to address child sex abuse in sports

viaSport is organizing a full day of education in association with Canadian Centre for Child Protection and the Coaching Association of Canada.

Report sets exercise guidelines for young kids, including ‘tummy time’ for babies

Kids aged one to four should get at least three hours of physical activity throughout the day

Stampeders return to Grey Cup with 32-28 win over Edmonton Eskimos

The Stampeders will face the Toronto Argonauts next Sunday in Ottawa for the title

Nebraska approves TransCanada’s Keystone XL pipeline

Nebraska’s Public Service Commission approved TransCanada’s Keystone XL route in a close vote

B.C. VIEWS: China a better partner than U.S.

B.C. is slowly winning the softwood lumber war

Forecast calls for a snowy Canadian winter

Canadians told to brace for a ‘classic’ Canadian winter with lots of snow

Most Read