British Columbia Expects $11.2 Billion Deficit Amid Revenue Fluctuations
The British Columbia government has revised its fiscal forecast, now projecting an $11.2 billion deficit for the current year. While still a significant amount, this figure is slightly lower than the previously anticipated $11.6 billion deficit stated in the last quarterly report.
According to the Ministry of Finance’s latest quarterly report, released today, the province foresees a revenue increase of $512 million compared to earlier predictions. This uptick is attributed to higher corporate and personal income taxes. However, the report highlights declines in other tax revenues, such as a $150 million decrease in property transfer taxes, $100 million less from provincial sales tax, and $50 million less from tobacco tax.
Finance Minister Brenda Bailey acknowledges the impact of American tariffs on British Columbia’s economy, emphasizing the need to cultivate new trade partnerships, support major projects, and streamline operations. Despite challenges, the province anticipates economic growth at a steady pace.
The initial quarterly report, issued in September, had already signaled a record deficit against the backdrop of global trade uncertainties, with U.S. tariffs affecting the province’s gross domestic product.
The most recent report outlines various capital ventures exceeding $50 million, including the construction of the Simon Fraser University Medical School facility costing $521 million and eight BC Hydro undertakings totaling over $1.2 billion.
Keyphrase: British Columbia deficit