Photo of Minister James taken July 14, 2020 (Courtesy of BC Gov Flickr)

By Dylana Kneeshaw

BC FISCAL RESULTS

Pandemic drives province to $321 million deficit for 2019-2020 fiscal year

Aug 31, 2020 | 11:58 AM

VICTORIA — As a result of the COVID-19 pandemic, the province wound up with a $321 million deficit for the 2019/2020 fiscal year.

B.C. Finance Minister Carole James laid out the province’s 2019-2020 Public Accounts on Monday (Aug. 31), which are meant to ensure transparency with government finances and investments.

“This wasn’t the fiscal outcome we had worked towards but it was certainly inevitable,” James stated in a teleconference today.

Pre-COVID projections estimated B.C would have a $274 million surplus by the end of the fiscal year. However, driven by the pandemic, the government saw a difference of $595 million from its original estimate.

“We started 2020 with zero operating debt, a AAA credit rating, and one of the lowest unemployment rates in the country,” explained James. “We have a diverse and resilient economy, and we saw a modest surplus and steady economic growth in the first three quarters of 2019/20. But as we moved into the final quarter of the 2019/20 fiscal year, the impacts of COVID were beginning.”

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Specifically, James says the deficit was a result of pandemic public health measures, lower taxation revenue due to COVID-19, and a $298 million dollar ICBC investment loss due to market changes.

The finance minister says the COVID-19 pandemic has ravaged economies around the world, and B.C is no exception.

“B.C. isn’t alone in facing these challenges, but we are in a strong position to weather them. The investments we made in 2019-20, such as eliminating MSP premiums and investing in child care and housing, will make life more affordable and support people through COVID-19 as the Province develops a strong economic recovery plan.”

Moving forward, James says the public accounts for 2019-2020 show B.C. is in good financial standing with affordable debt levels at the end of the fiscal year. B.C. also continues to lead the country as the only AAA accredited province. Additionally, the province’s gross domestic product (GDP) grew by 2.8 per cent in 2019, which was above the national average of 1.7 per cent.

For more information about today’s announcement, and to view the Public Accounts online, click here.