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

Distracted Driver crashes into ditch along Byng Road

Port Hardy public works department confirms the incident was caused by distracted driving.

Salvation Army’s Kettle Campaign needs volunteers in Port Hardy

The Salvation Army’s Christmas Kettle Campaign is starting up on Nov. 29… Continue reading

Changes coming to BC Ferries reservations for Vancouver Island routes

Many customers are booking multiple reservations, inflating wait times

UPDATE: North Island highway crash resulting in serious injuries still under investigation

The two drivers were seriously injured and sent to a hospital in Victoria.

Port Hardy Mayor Dennis Dugas votes in favour of eliminating overtime pay for confidential secretary

“I think when staff makes a recommendation I have to support staff’s recommendation.”

VIDEO: B.C. legislature clerk, sergeant at arms suspended for criminal investigation

Clerk of the House Craig James, Sergeant-at-arms Gary Lenz on administrative leave

Trial: Witness describes encounter with accused murderer while tending to fatally injured Descoteau

Wright said he was working in his yard when he heard a woman screaming.

Former NHL player and coach Dan Maloney dies at 68

Maloney coached the Toronto Maple Leafs and Winnipeg Jets

Ex-MSU president charged with lying to police about Nassar

Lou Anna Simon was charged Tuesday with lying to police during an investigation

Police aim to prevent retaliation after Hells Angel found dead under B.C. bridge

IHIT confirms Chad Wilson, 43, was the victim of a ‘targeted’ homicide

Otter makes a snack out of koi fish in Vancouver Chinese garden

Staff say the otter has eaten at least five fish

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

B.C. lumber mills struggle with shortage of logs, price slump

Signs of recovery after U.S. market swings, industry executive says

25% of Canadians still won’t say they use pot, survey says

Statistics Canada poll says Canadians on average were 18.9 years old when they first tried pot.

Most Read