B.C. deficit forecast tops $3 billion

Falling revenues have pushed B.C.'s deficit forecast above $3 billion, due to

Finance Minister Kevin Falcon

VICTORIA – Expected revenues to the B.C. government fell by $303 million in the second quarter of the fiscal year, due mainly to instability around the world, Finance Minister Kevin Falcon announced Monday.

The drop in revenues will make it more difficult to meet the government’s target of balancing the budget by 2013. Falcon said he will wait until January, when the finance ministry has to finalize its next budget, to see if that target can still be met.

Coupled with a $30 million jump in spending, the latest figures bring the deficit forecast for the year fiscal year ending next March to $3.1 billion.

In a quarterly briefing to reporters, Falcon also confirmed that it will take until the spring of 2012 to reverse the harmonized sales tax.

The largest revenue dip is $146 million less in net income from commercial Crown corporations. The largest factor there was a drop in Insurance Corp. of B.C. revenues, where investment income fell because of instability in the European Union. Falcon said insurance companies around the world have seen investments “hammered” by the the struggles to keep Greece, Italy and other countries from defaulting on debt.

Low prices from a glut of natural gas supplies have reduced B.C. revenues, and the continued slump in U.S. housing has affected forestry revenues.

On the spending side, Falcon said the B.C. government has trimmed operating expenses by $20 million this year. But that was offset by $30 million in costs related to flooding that mainly hit northern B.C. this spring.

Just Posted

Men accused in Michael Bonin’s murder knew him: IHIT

20-year-old’s body found on a rural service road North of Hope in April

Woman charged in Abbotsford mall stabbing served time for 2001 killing

Victim in Edmonton killing was stabbed eight times with kitchen knife

Freezing rain warning in effect for B.C. Southern Interior

Environment Canada issued the freezing rain warning for most of the Southern Interior Tuesday morning

Trial date scheduled for man charged with killing Abbotsford officer

Oscar Arfmann slated to go to trial in New Westminster in January 2019

Union files human rights complaint over Chilliwack school trustee’s LGBTQ comments

Board and trustee Barry Neufeld facing $50,000 tribunal charge over alleged ‘unsafe work environment’

VIDEO: Orcas put on a show near Hornby Island

Louis Jobodin shares photos and video of his experience

Canada, U.S. lead call for sanctions against North Korea

Foreign ministers from 20 countries are meeting in Vancouver to discuss security and stability on the Korean Peninsula

More places in Hope to pick up Naloxone

Hope and Area Transition Society opens doors for people seeking overdose antidote

Federal NDP Leader Jagmeet Singh announces engagement

Federal NDP Leader Jagmeet Singh engaged to clothing designer Gurkiran Kaur

Hijab-cutting case highlights ethical issues with putting kids in spotlight

A Toronto police investigation has concluded a girl’s hijab was not cut by a scissors-wielding man as she walked to school

Change in politics, society on sexual misconduct ‘not fast enough,’ says Trudeau

Trudeau says society still lagging behind the systemic changes he is trying to make when it comes to preventing and responding to sexual harassment

Bank of Canada to make interest rate decision today

Economists widely believe that based on the economic environment, it’s likely interest rates will rise today

Body discovered in burnt out car near Trail

Police report a body was found in the burnt out trunk of a 1999 Honda Civic

VIDEO: B.C. Lions sign defensive back T.J. Lee to contract for upcoming season

The four-year veteran had a team-high four interceptions and 49 tackles last season with B.C.

Most Read