B.C. posts $1.5B surplus as tax revenue increases and real estate market cools
Finance Minister Carole James says the higher-than-expected surplus is primarily due to $2.9 billion in increased revenue, largely driven by higher personal and corporate income tax and new taxes including a speculation tax and employer health tax. (File photo)
CTV Vancouver Island
Published Thursday, July 18, 2019 4:35PM PDT
Last Updated Thursday, July 18, 2019 7:01PM PDT
The British Columbia government ended its fiscal year in an operating surplus of $1.5 billion with the collection of more revenue from taxation and less money from a softening real estate market.
The 2018-19 public accounts released today by Finance Minister Carole James show that the province has eliminated its operating debt for the first time in 40 years.
The higher-than-expected surplus is primarily due to $2.9 billion in increased revenue, largely driven by higher personal and corporate income tax and new taxes including a speculation tax and employer health tax.
James says she isn't concerned about a $315-million reduction in property transfer tax revenue, saying the previous Liberal government relied on a speculative real estate market to grow resources while her NDP government has a long-term economic plan.
She says her budget in 2018 put B.C. on a different path with a record $1-billion investment in child care and $7 billion for affordable housing, and the surplus puts B.C. in a stable position amid signs of global economic insecurity.
James also says her government has chosen to confront financial challenges at the Insurance Corporation of British Columbia and BC Hydro, and both Crown corporations are now on a more sustainable path.