B.C. deficit forecast tops $3 billion

Falling revenues have pushed B.C.'s deficit forecast above $3 billion, due to

Finance Minister Kevin Falcon

VICTORIA – Expected revenues to the B.C. government fell by $303 million in the second quarter of the fiscal year, due mainly to instability around the world, Finance Minister Kevin Falcon announced Monday.

The drop in revenues will make it more difficult to meet the government’s target of balancing the budget by 2013. Falcon said he will wait until January, when the finance ministry has to finalize its next budget, to see if that target can still be met.

Coupled with a $30 million jump in spending, the latest figures bring the deficit forecast for the year fiscal year ending next March to $3.1 billion.

In a quarterly briefing to reporters, Falcon also confirmed that it will take until the spring of 2012 to reverse the harmonized sales tax.

The largest revenue dip is $146 million less in net income from commercial Crown corporations. The largest factor there was a drop in Insurance Corp. of B.C. revenues, where investment income fell because of instability in the European Union. Falcon said insurance companies around the world have seen investments “hammered” by the the struggles to keep Greece, Italy and other countries from defaulting on debt.

Low prices from a glut of natural gas supplies have reduced B.C. revenues, and the continued slump in U.S. housing has affected forestry revenues.

On the spending side, Falcon said the B.C. government has trimmed operating expenses by $20 million this year. But that was offset by $30 million in costs related to flooding that mainly hit northern B.C. this spring.

Just Posted

PHOTOS: City of Colwood hosts a ‘heartwarming start’ to the holidays

Colwood Christmas Light Up Celebration sees surge in attendance

Trauma sufferers support group takes shape on West Shore

Aaron’s Society open to more peer support groups with certified trauma practitioners

Mental health call temporarily shuts down Trans Canada Highway in View Royal

West Shore RCMP cite 14 percent increase in calls concerning mental health in 2019

B.C. Transit saves $300,000, scores 28 used fareboxes idle in California

‘Someone joked maybe we can buy used fareboxes on eBay,’ CEO says

Tenants above Wellburns uncertain after ‘nightmare’ sewage flood ousts them indefinitely

Tenants evacuated after sewage flooded basement of century-old building

VIDEO: John Lennon’s iconic Rolls Royce rolls into Camosun College for checkup

Royal BC Museum, Camosun College and Coachwerks Restorations come together to care for car

VIDEO: Rockslide closes part of Highway 93 in Fairmont Hot Springs

Geotechnical team called in to do an assessment after rocks fell from hoodoos

Petition calls for appeal of ex-Burns Lake mayor’s sentence for sex assault

Prosecution service says Luke Strimbold’s case is under review

Northwest B.C. wildlife shelter rescues particularly tiny bear cub

Shelter co-founder says the cub weighs less than a third of what it should at this time of year

BC firefighters to help battle Australian bushfires

Canada sent 22 people, including 7 from B.C.

B.C. NDP touts the end of MSP premiums

Horgan, James held news conference to reiterate that people will get their last bill this month

Oscar Hickes: Longest running hockey tournament on Vancouver Island cancelled

Patrick Murray, one of the organizers for the tournament, broke the sad news on social media.

EMCS hosts winter concert

Concert Band will share its festival pieces

11 Sooke events to get you into the holiday spirit

From a Santa parade to classicial music, Sooke has it all

Most Read