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

Registration is open for the Okanagan’s largest outdoor cycling class

The 13th annual YMCA of Okanagan Cycle for Strong Kids event will take place on May 26

VegFest drops Okanagan Ice Pops as sponsor

Controversy stirs over a bacon-chocolate flavoured popsicle

Semi-annual Trunk Sale returns Saturday

Regional District Waste Reduction Office hosts semi-annual Trunk Sale

Kelowna company wins contract for LNG Canada project in Kitimat

SK Form & Finish will work with equivalent of 4,000 fully loaded concrete trucks

Kelowna Chamber of Commerce commends council on tough decision

Kelowna city councillors decided to leave short-term rental bylaw as is, for now

Kelowna toddler suffers cracked skull after fall from balcony

Neighbour who found the two-year-old boy said he has a bump the size of a golf ball on his head

Update: Plan to see more smoke from South Okanagan wildfire

Richter Creek wildfire, 12 kilometres west of Osoyoos, is an estimated 400 hectares

Black bear spotted near Salmon Arm elementary school

The bear was sighted at around 4 p.m. after school was out

Multiple black bear sightings in residential area near Okanagan elementary

Pictures of the bear have been posted on the Armstrong Community Forum frequently

RCMP probe if teen was intentionally hit with ski pole by mystery skier on B.C. mountain

The incident happened on March 20 on Grouse Mountain. Police are urging witnesses to come forward

Baby boom seniors putting pressure on B.C. long-term care: report

B.C. leads Canada in growth of dementia, dependence on care

Pipeline protester chimes in on Justin Trudeau’s B.C. fundraising speech

The government purchased the Trans Mountain pipeline and expansion project for $4.5 billion

UPDATED: B.C. man says he’ll take People’s Party lawsuit as far as he can

Federal judge shut down Satinder Dhillon’s ‘nonsensical’ motion to bar use of PPC name in byelection

Most Read