B.C. Finance Minister Selina Robinson speaks to the legislature’s pre-Christmas session to approve more COVID-19 spending, Dec. 10, 2020. (Hansard TV)

B.C. Finance Minister Selina Robinson speaks to the legislature’s pre-Christmas session to approve more COVID-19 spending, Dec. 10, 2020. (Hansard TV)

Rising income, real estate tax hold B.C. deficit at $13.6 billion

Cost of next COVID-19 payments up to $1.7 billion

B.C.’s deficit is forecast to rise to a record $13.6 billion for the current year, with some signs of recovery offsetting another $2 billion round of COVID-19 spending debated in the legislature this week.

Finance Minister Selina Robinson released the province’s second quarter economic update Dec. 17, two months late as the government struggles to keep up with the demands of the coronavirus pandemic. It shows an increase in the forecast deficit, $850 million higher than the first quarter forecast. B.C.’s economy is now expected to shrink by 6.2 per cent for 2020, with a “partial recovery” forecast for 2021.

The cost of sending $1,000 in borrowed money to almost all B.C. households whether they lost income in the pandemic or not, an October election promise from Premier John Horgan, is offset by better-than-forecast income tax and property transfer tax revenue, as well as gains in net income for Crown corporations such as B.C. Hydro and ICBC.

Estimated cost of the payments has been revised upward, from $1.45 billion in the NDP election platform to $1.7 billion in the latest update. It pays $1,000 to families with 2019 income up to $125,000, and $500 for single individuals who made up to $67,500 last year. Reduced payments are to go to families earning up to $175,000 and individuals making up to $87,000 in 2019.

B.C.’s export revenues are down eight per cent so far this year, but the forecast for natural resource revenue has increased by $156 million, mainly due to increased prices for lumber and natural gas.

The biggest boost to forecast revenues is $479 million more in property transfer tax, driven by rising real estate prices and an active market in recent months. Commercial Crown net income is revised upward by $363 million from the first quarter.

“ICBC net income is up $324 million, mainly due to savings from lower claims costs, Liquor Distribution Branch net income is up $35 million, reflecting a shift in consumption to home purchases, and this is partly offset by weaker B.C. Lottery Corp. income due to temporary casino closures,” Robinson told reporters Dec. 17.

RELATED: ICBC applies for 15% rate decrease as lawyers pushed out

RELATED: B.C. tourism calls for ‘bridge’ recovery from COVID-19


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureBC politicsCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Katie Smith and Richard Coombs are teh couple behind Agassiz Delivered, a new delivery company that has taken off during the COVID-19 pandemic. (Agassiz Delivered/Facebook)
Local couple keeps Agassiz delivered

What started out as takeout delivery has turned into a pandemic business boom

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine. THE CANADIAN PRESS/Nathan Denette
Agassiz long term care homes receive first COVID-19 shot

Fraser Health says all 151 care homes in the region will have had vaccination clinics by Jan. 15

Two people were in a vehicle that rolled over on Highway No. 1 near Lickman Road. They are now out of the vehicle. (Jenna Hauck/ Chilliwack Progress)
Vehicle rolls over on Highway 1 near Lickman Road in Chilliwack

Two people in SUV at time of collision in westbound lanes

Both eastbound lanes are completely west of exit 135 on Highway 1. (Google maps)
UPDATE: Traffic now getting through following car collision on Highway 1 in Chilliwack

Incident happened shortly just west of exit 135 for Agassiz/Harrison Hot Springs

The route of the pink parade. The Record has blackened out the name of the teen. Facebook photo.
Pink-vehicle parade to be held Sunday in support of transgender teen assaulted in Mission

Teen and family to watch parade drive single file along waterfront at 3 p.m., Jan. 17

The slide on the east side of Harrison Lake came down on Wednesday (Jan. 13. 2021) but has not impacted the forest service road. (Screenshot/Tery Kozma video)
VIDEO: Harrison Lake rock slide caught on camera

The slide is not impacting the eastern forest service roads

Harvest Meats is recalling a brand of Polish sausages, shown in a handout photo, due to undercooking that may make them unsafe to eat. The Canadian Food Inspection Agency says the recall affects customers in Alberta, British Columbia, Manitoba, Northwest Territories, Ontario and Saskatchewan. THE CANADIAN PRESS/HO-Canadian Food Inspection Agency Mandatory Credit
Harvest Meats recalls sausages over undercooking

Customers are advised to throw away or return the product

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

The Delta Hospice Society operates the Harold & Veronica Savage Centre for Supportive Care (pictured) and the Irene Thomas Hospice in Ladner. (The Canadian Press photo)
Fraser Health to evict Delta Hospice Society, open new hospice beds next door

Health authority will serve DHS 30 days’ notice when service agreement expires Feb. 25

Martin Luther King Jr. addresses the crowd during the march on Washington, D.C., in August of 1963. Courtesy photo
Government announces creation of B.C.’s first anti-racism act on Black Shirt Day

B.C. Ministers say education “a powerful tool” in the fight for equity and equality

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Jobs Minister Ravi Kahlon shared a handwritten note his son received on Jan. 13, 2021. (Ravi Kahlon/Twitter)
Proud dad moment: B.C. minister’s son, 10, receives handwritten note for act of kindness

North Delta MLA took to Twitter to share a letter his son received from a new kid at school

Black Press media file
Port McNeill driver tells police he thought the pandemic meant no breathalyzers

Suspect facing criminal charges after breathalyzer readings in excess of 3.5 times the legal limit

Most Read