BC’s provincial deficit is going up and that spells bad news for taxpayers.
Today (Thursday), the province issued its Fall 2020 Economic and Fiscal Update where the deficit is now forecasted at $13.6 billion, which includes an additional $2 billion for new COVID-19 supports via the Recovery Benefit and Recovery Supplement.
“2020 has been a tough year for families, communities, and our economy. I am encouraged by the economic improvement we’re seeing, but I know not everyone has been similarly affected,” said Selina Robinson, Minister of Finance.
“We will continue to support people and businesses through this pandemic and into a brighter year with the first vaccinations already arriving in B.C.”
Partial economic recovery is predicted for B.C. next year, and the report shows continued areas of economic improvement in employment, retail sales, and housing activity.
“The impacts of COVID-19 have been experienced right around the globe, and it’s going to be a while before a fiscal update for B.C. resembles anything like the pre-pandemic province we knew,” Robinson said.
“We are continuing to support British Columbians through this pandemic, and we are making targeted investments like grant and tax relief programs for businesses.”
The fiscal update details over $10 billion in response measures related to the pandemic that have supported people, businesses, and communities since the beginning of the fiscal year.
Economic highlights:
* B.C.’s real gross domestic product (GDP) is forecast to decline by 6.2% in 2020, before increasing by 3.0% in 2021.
* The province’s total employment is up to 98.5% of pre-pandemic levels. This is the highest job recovery rate of any of Canada’s four largest provinces
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