Finance Minister Carole James presents the audited public accounts at the B.C. legislature, July 18, 2019. (Tom Fletcher/Black Press)

Tax take stays ahead of increased B.C. government spending

Tax revenue $2.1 billion higher than budget in 2018-19

Low unemployment, economic growth and the introduction of new taxes led the B.C. government to take in nearly $3 billion more than budgeted in the year ended in March.

Finance Minister Carole James released the province’s audited public accounts at the B.C. legislature Thursday, showing an operating surplus of $1.5 billion for the year, despite an increase in program spending of almost $2 billion in 2018-19 fiscal year. Taxation revenue alone rose $2.1 billion, and natural resources revenue also came in $695 million higher than expected in the 2018 budget, the first full year of the NDP minority government.

The employer health tax, introduced to replace Medical Services Plan premiums, took in $464 million, as the government continued to collect MSP revenues at half of the previous rate for the year. MSP is to be phased out at the end of 2019.

The speculation and vacancy tax imposed on properties in urban areas took in $115 million during the fiscal year.

RELATED: 12,000 property owners paying speculation tax so far

RELATED: Victoria council denies VicPD help with employer health tax

The province’s auto insurance company, ICBC, lost $1.1 billion that year, with soaring accident claims that have prompted an overhaul of rates and injury payouts. James said the reforms are being phased in and while there is some improvement, she expects another loss in the current year before ICBC covers its costs.

“When I say a slight improvement, I mean they lost less than expected, but they still lost,” James said.

Natural resource revenue was $695 million higher than budget, much of it stumpage income from Crown forests. A record summer for forest fire area also pushed protection spending $354 million above the budgeted amount.

Health and education spending exceeded budget by $688 million, much of that from more than 3,000 additional teachers added to satisfy an order of the Supreme Court of Canada.

B.C.’s economic growth for calendar 2018 is estimated at 2.4 per cent, third highest among provinces. The finance ministry says that growth was “led by goods-producing industries with notable gains in mining, quarrying and oil and gas extraction, construction and manufacturing.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

BREAKING: Kelly Ellard gets day parole extended for six more months

Ellard was convicted of killing 14-year-old Reena Virk in 1997

Relative of man found dead in Saanich says he was missing for years

RCMP and a private detective had been searching for him since 2012

Ten bikes reported stolen in 24 hours in Victoria

VicPD asking residents to check their bikes after spike in thefts

Tours showcase sculptures, art demos in final week of Oak Bay’s Arts and Culture Days

Arts and Culture Days ends with community picnic at Carnarvon Park on Aug. 29

Truck purchase prompts staffing plea from Esquimalt Firefighters Association

Union president says staffing should come before new equipment

Trudeau vows to stand firm against ‘increasingly assertive’ China

China has accused Canada of meddling in its affairs

Greater Victoria wanted list for the week of Aug. 23

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Should there be a ban on gas-powered leaf blowers?

We’ve all heard them, and most likely cursed them under our breath.… Continue reading

New study suggests autism overdiagnosed: Canadian expert

Laurent Mottron: ‘Autistic people we test now are less and less different than typical people’

B.C. hockey player excited to join Humboldt Broncos

Defenceman Sebastien Archambault played last two seasons with Junior B Sicamous Eagles.

Huawei executive’s defence team alleges Canadians were ‘agents’ of the FBI

eng’s arrest at Vancouver’s airport has sparked a diplomatic crisis between Canada and China

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

On vaccines, abortion, Goop, doctor Jen Gunter says: ‘I have a duty to speak up’

She speaks out on menstruation, the wellness industry and vaccines

Rosemount cooked diced chicken linked to listeria case in B.C.

The symptoms of listeria include vomiting, nausea, fever, muscle aches

Most Read