Province’s year-end deficit projected to be nearly $5 billion
(BC Finance Minister Selina Robinson. Photo supplied by BC Government)
BC’s Finance Minister painted a much sunnier picture when it comes to the province’s economic recovery.
In a news release today (Monday), Selina Robinson noted current forecasts show an increase in revenues and a reduction in the deficit for the 2021-22 fiscal year.
“We have all been impacted by the pandemic, and the collective actions of British Columbians have brought us through this unprecedented challenge together. This is the driving force behind B.C.’s faster-than-expected economic recovery and our improved outlook,” said Selina Robinson, Minister of Finance. “Because of this shared commitment, we’ve been able to see strong recovery in many sectors, while we continue providing targeted supports to the people and businesses that need it. The strong performance this quarter puts B.C. in a better economic and fiscal position than originally anticipated.”
This also includes BC’s strong vaccination rates, which are supporting economic recovery in many sectors.
In the Province’s first quarterly report, the year-end deficit is projected to be $4.8 billion roughly half of what was previously predicted in Budget 2021.
In addition, the report also noted an overall increase of $6.2 billion in provincial revenues compared to Budget 2021.
According to the government, this is primarily due to gains in personal and corporate income tax revenues, natural resource revenues, and federal funding largely related to B.C.͛s pandemic response and recovery measures, as well as child care.
B.C.͛s real gross domestic product (GDP) is forecast to see continued strength, growing by 6% this year and, as the recovery continues, by 4% in 2022.
A link to the full release can be found here.