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

Brian Minter to share passion for gardens and greenspaces at Salmon Arm Fair

Well-known B.C. master gardener to give presentation on Friday, Sept. 6.

Salmon Arm seniors enjoy the outdoors thanks to Rotary

Salmon Arm club fixes up and furnishes outdoor living spaces at Bastion Place

Salmon Arm Downtown Activity Centre owner wants to keep building alive

Support from community in form of tenants wanted for heritage building

Shuswap’s Rust Valley Restorers team rolling onto Netflix

Mike and Connor Hall, Avery Shoaf see television show picked up by streaming service

Grass fire breaks out on highway south of Vernon

Highway 97 traffic slowed as firefighters snuff grass fire

Drugs, cash and 11 people apprehended at Okanagan residence

RCMP executed warrant at a Vernon home for second time in a month

Wildfire sparks beside Highway 3 west of Keremeos

A wildfire on the side of Highway 3 just west of Keremeos… Continue reading

Salmon Arm’s Hideaway Beer Badgers take semifinal win over Vernon’s OKG

Final goes Saturday in Vernon versus number-one seed N.E.T.

Summerland relaunches net metering program

Event open house will be held Aug. 27 from 3 to 6 p.m in Arena Banquet Room

Conan turns to the Property Brothers for tips on buying Greenland

Jonathan Scott suggests removing glaciers and mountains to bring in ‘more natural light’

Jaws of Life used to rescue driver in North Okanagan crash

Single-vehicle MVI causes traffic delays on Highway 6

Forests minister visits B.C. town rocked by multiple mill shutdowns

A third of Mackenzie turns out for rally, not much to cheer about

Most Read