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

Someone bought a lottery ticket worth $4.2 million in Aldergrove (file)
Lottery ticket worth $4.2 million purchased in Aldergrove

Lotto 6/49 numbers were drawn Saturday

Police tape is shown in Toronto Tuesday, May 2, 2017. (Graeme Roy/The Canadian Press)
CRIME STOPPERS: ‘Most wanted’ for the week of Jan. 24

Crime Stoppers’ weekly list based on information provided by police investigators

Dale Nordal photographed a frosty scene in late 2020. (Special to the Langley Advance Times)
SHARE: Frosty vista of Mount Baker by Langley City man

Send us your photo showing how you view Langley, and it could be featured in a future edition

On Monday, Sept. 21, 2020, the Township approved a rainbow crosswalk between the school district and RCMP buildings in Murrayville, but did not earmark funds for the project. (Langley Advance Times file)
Out On Patrol police group backs rainbow crosswalk in Langley

Urges supporters to donate to cover cost of $12,000 crossing near main RCMP detachment

Terrance Josephson of the Princeton Posse, at left, and Tyson Conroy of the Summerland Steam clash during a Junior B hockey game at the Summerland Arena in the early spring of 2020. (John Arendt - Summerland Review)
QUIZ: How much do you know about hockey?

Test your knowledge of Canada’s national winter sport

Jennifer Cochrane, a Public Health Nurse with Prairie Mountain Health in Virden, administers the COVID-19 vaccine to Robert Farquhar with Westman Regional Laboratory, during the first day of immunizations at the Brandon COVID-19 vaccination supersite in Brandon, Man., on Monday, January 18, 2021. THE CANADIAN PRESS/Tim Smith - POOL
Top doctor urges Canadians to keep up with COVID measures, even as vaccines roll out

More than 776,606 vaccines have been administered so far

From the left: Midway RCMP Csts. Jonathan Stermscheg and Chris Hansen, Public Servant Leanne Mclaren and Cpl. Phil Peters. Pictured in the front are Mclaren’s dog, Lincoln and Peters’ dog, Angel. Photo courtesy of BC RCMP
B.C. Mounties commended for bringing firewood to elderly woman

Cpl. Phil Peters said he and detachment members acted after the woman’s husband went to hospital

Dr. Jerome Leis and Dr. Lynfa Stroud are pictured at Sunnybrook Hospital in Toronto on Thursday, January 21, 2021.THE CANADIAN PRESS/Frank Gunn
‘It wasn’t called COVID at the time:’ One year since Canada’s first COVID-19 case

The 56-year-old man was admitted to Toronto’s Sunnybrook Health Sciences Centre

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

An Uber driver’s vehicle is seen after the company launched service, in Vancouver, Friday, Jan. 24, 2020. Several taxi companies have lost a court bid to run Uber and Lyft off the road in British Columbia. THE CANADIAN PRESS/Darryl Dyck
Taxi companies lose court bid to quash Uber, Lyft approvals in British Columbia

Uber said in a statement that the ruling of the justice is clear and speaks for itself

sd
VIDEO: Mission drag racer scores 1st career win, sets world record, makes history in 2020

Justin Bond, founder and owner of JBS Equipment Mission, has break-out year

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

A video posted to social media by Chilliwack resident Rob Iezzi shows a teenager getting kicked in the face after being approached by three suspects on Friday, Jan. 22, 2021. (YouTube/Rob i)
VIDEO: Security cameras capture ‘just one more assault’ near B.C. high school

Third high-school related assault captured by Chilliwack resident’s cameras since beginning of 2021

Most Read