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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Township council to deliberate Aldergrove Town Centre plans

Janda Group’s redevelopment proposal will be voted on during Monday evening meeting

VIDEO: Silvertips edge Giants 2-1 Thursday in Langley

Vancouver falls just short, dropping hard-fought, one-goal decision to Everett at home

1.6-magnitude earthquake rouses residents from their sleep near Agassiz

The quake was detected 3 km east-northeast of Agassiz

Human right complaint in Langley gets re-set

The complaint has been dismissed and re-filed

Odd Thoughts: Positivity quickly being negated

Just when things were starting to look like they were getting better…

Fashion Fridays: The basics you need for your body type

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Was Bigfoot just spotted on a Washington State webcam?

Sherman Pass is rougly 70 kilometres south of Grand Forks, B.C.

B.C. employer health tax wins ‘paperweight award’ for red tape

Businesses forced to estimate payroll, pay new tax quarterly

VIDEO: Dashcam records near-miss by bad driver near Sooke

Driver crossed four lanes of traffic and back over again, barely missing three other vehicles

New U.S. LNG terminal near northwestern B.C. town proposed

AlaskCAN International LNG wants terminal just over Canadian border, but using B.C gas

UPDATE: Ride-hailing launches in parts of Metro Vancouver

Uber and Lyft vow to expand as more drivers are hired

Couple wonders who’s in a Cariboo photo that’s been hanging in their home for years

Charles and Lynn Dick believe the image was taken at the 70 Mile Road House

‘I would not go’ to China says B.C. traveller concerned about coronavirus

Alice Li said she goes to China every other year but would scrap any travel plans

Most Read