In a little good news moment, B.C. Finance Minister Selina Robinson revised the province’s deficit projection September 13 to $4.8 billion, down from an initial forecast of $9.7 billion, citing higher-than-expected revenues..In the province’s first quarterly report, the year-end deficit is projected to be $4.8 billion – roughly half of what was previously predicted in Budget 2021. This improvement is attributed to stronger-than-anticipated recovery in many sectors of the economy, leading to higher-than-expected revenues..“We have all been impacted by the pandemic, and the collective actions of British Columbians have brought us through this unprecedented challenge together,” said Robinson during the September 13 afternoon announcement..“This is the driving force behind B.C.’s faster-than-expected economic recovery and our improved outlook … because of this shared commitment, we’ve been able to see strong recovery in many sectors, while we continue providing targeted supports to the people and businesses that need it. The strong performance this quarter puts B.C. in a better economic and fiscal position than originally anticipated.”.The quarterly report — which shows revenues and expenses from April to June 2021 —saw an overall increase of $6.2 billion in provincial revenues compared to Budget 2021. Robinson said this is primarily due to gains in personal and corporate income tax revenues, natural resource revenues and federal funding largely related to B.C.’s pandemic response and recovery measures, as well as child care..Robinson added higher retail sales, exports and housing have helped the economy rebound at a faster rate than expected just five months ago when the budget was tabled.Still, she noted the recovery has been uneven..Some businesses are reporting difficulty in attracting and keeping workers, spending on services such as travel and recreation are down and there are lingering impacts to youth, women and people of colour who were disproportionately affected by the COVID-19 pandemic..As of August, the province’s unemployment rate was 6.2%, higher than pre-pandemic levels, but lower than the national average of 7.1%..Retail sales were 13% higher than pre-pandemic levels, with spending on autos and parts, building supplies and gardening both up by more than 35%..Robinson said workers searching for more space for a home office also propelled spending on housing. To the end of June the province had collected nearly a billion dollars..While Robinson said housing activity has slowed in recent months, it’s still at near record levels and house prices are also continuing an upward trajectory..Mike D’Amour is the British Columbia Bureau Chief for the Western Standard..,.mdamour@westernstandardonline.com
In a little good news moment, B.C. Finance Minister Selina Robinson revised the province’s deficit projection September 13 to $4.8 billion, down from an initial forecast of $9.7 billion, citing higher-than-expected revenues..In the province’s first quarterly report, the year-end deficit is projected to be $4.8 billion – roughly half of what was previously predicted in Budget 2021. This improvement is attributed to stronger-than-anticipated recovery in many sectors of the economy, leading to higher-than-expected revenues..“We have all been impacted by the pandemic, and the collective actions of British Columbians have brought us through this unprecedented challenge together,” said Robinson during the September 13 afternoon announcement..“This is the driving force behind B.C.’s faster-than-expected economic recovery and our improved outlook … because of this shared commitment, we’ve been able to see strong recovery in many sectors, while we continue providing targeted supports to the people and businesses that need it. The strong performance this quarter puts B.C. in a better economic and fiscal position than originally anticipated.”.The quarterly report — which shows revenues and expenses from April to June 2021 —saw an overall increase of $6.2 billion in provincial revenues compared to Budget 2021. Robinson said this is primarily due to gains in personal and corporate income tax revenues, natural resource revenues and federal funding largely related to B.C.’s pandemic response and recovery measures, as well as child care..Robinson added higher retail sales, exports and housing have helped the economy rebound at a faster rate than expected just five months ago when the budget was tabled.Still, she noted the recovery has been uneven..Some businesses are reporting difficulty in attracting and keeping workers, spending on services such as travel and recreation are down and there are lingering impacts to youth, women and people of colour who were disproportionately affected by the COVID-19 pandemic..As of August, the province’s unemployment rate was 6.2%, higher than pre-pandemic levels, but lower than the national average of 7.1%..Retail sales were 13% higher than pre-pandemic levels, with spending on autos and parts, building supplies and gardening both up by more than 35%..Robinson said workers searching for more space for a home office also propelled spending on housing. To the end of June the province had collected nearly a billion dollars..While Robinson said housing activity has slowed in recent months, it’s still at near record levels and house prices are also continuing an upward trajectory..Mike D’Amour is the British Columbia Bureau Chief for the Western Standard..,.mdamour@westernstandardonline.com
