Image Credit - B.C. Finance Minister Selina Robinson / Flickr

By Dylana Kneeshaw

FISCAL DEFICIT

B.C. government releases improved financial results

Jul 28, 2021 | 10:38 AM

VICTORIA — The B.C. Government is projecting a $5.5 billion deficit for the end of the 2020-21 fiscal year – which is $2.7 billion less than initial projections.

In a release today (July 28), Finance Minister Selina Robinson credits British Columbians for the lowered amount, noting vaccination progress and lower case counts have allowed for stronger economic recovery in several sectors.

The ministry partly attributes the reduced deficit to “some sectors of the economy faring better than worse-case scenarios, which resulted in lower-than-expected spending and higher-than-expected revenues.”

The new estimates come after spending on COVID-19 supports and recovery programs reached a whopping $10.1 billion by the end of March 2021.

According to the release, over the fiscal year of 2019-20 investments in health, community supports, K-12 education, and social services grew the province’s expenses by $8.6 billion. However, revenue increased by $3.5 billion over revenues in 2019-20.

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The province credits much of the higher revenues to the resiliency of some sectors, federal contributions for COVID-19 supports, and more savings and earnings at ICBC. A provincial deficit is expected for the next several years as a result of pandemic impacts and recovery efforts, but the ministry is projecting a deficit decline over the next three years.

Overall, the release states B.C. is in good financial standing, and will end the fiscal year with affordable debt levels. The next report on provincial finances will be the first quarterly report in September.