B.C. budget still in the black, barely

Finance Minister Mike de Jong says job growth isn't where it should be, sales tax collection to be stepped up

Finance Minister Mike de Jong shows changes in budget update

VICTORIA – With half of the fiscal year in the books, the B.C. government is clinging to a small surplus that was promised in this spring’s election.

Finance Minister Mike de Jong presented the province’s second quarter budget update Wednesday, projecting that the fiscal year will end in March with a surplus of $165 million. That’s up $29 million from the September budget update. Corporate tax revenue is higher than expected, making up for personal tax revenue that was $284 million less than forecast.

Part of the decline in personal income tax is due to employment, which de Jong said was disappointingly “flat lined” so far in 2013. He said unemployment has “dropped modestly” and full-time employment has grown, but the province has work to do to meet its jobs plan goal.

NDP finance critic Mike Farnworth said the heavily advertised jobs plan is a flop, and the unemployment rate is down largely because 12,500 people have left B.C. to seek work since the plan was launched two years ago.

“Just look at the job numbers,” Farnworth said. “By their own admission, they’re pathetic.”

Another revenue loss for the B.C. treasury is provincial sales tax revenue, which is running $100 million below the budget forecast for the year. De Jong said one factor in that is that not all businesses have registered to collect and remit the PST since the province cancelled the harmonized sales tax last March.

More than 102,000 businesses have applied to register for the PST, and the finance ministry is continuing to assist businesses with seminars and one-on-one consultations on switching over.

De Jong said finance ministry staff have given businesses time to adjust and comply, but the grace period is ending.

“As we move into 2014, we’re going to expect people to fulfil their obligations and remit PST that they are obliged to, and officials will be pursuing that with the diligence that you would expect,” de Jong said.


Just Posted

Award-winning harmonica player transforms instrument on stage

Carlos del Junco plays Upstairs Lounge Friday March 23

Lilia Zaharieva wants to share her medical good fortune

UVic student wants treatment for cystic fibrosis made available for all

Piano campaign purchases piano and more for Oak Bay theatre

Surplus funds sound mixer and console for Dave Dunnet Community Theatre

Latitude 48 Paddling Club races through Victoria waters

Local team clinched victory in Nanaimo to kick off season that will see them compete in Hawaii

Greater Victoria police busy with St. Patrick’s Day calls

Victoria police respond to 82 calls for service

Monterey student sale a swarming success

Community shows up in record number for middle school event

Women’s Expo seeks to empower women this weekend

Victoria Women’s Expo set for Saturday and Sunday at Pearkes Recreation Centre

America’s Musical Journey premieres at the IMAX

Enter to win tickets to an invite only concert at your community newspaper’s Facebook page

Anti-pipeline protestors block Kinder Morgan tanker near Seattle

Protest was spurred on by the 28 anti-Kinder Morgan activists arrested in Burnaby

Mount Douglas Mathletes enjoying success by the numbers

Saanich Grade 9s walk away with top five spots in Island math competition

Some surprises in new book about B.C. labour movement

“On the Line” charts history of the union movement back to the 1800s

B.C. cyclist races to first win of the season in New Zealand

Casey Brown captures Enduro title by more than two minutes at Crankworx Rotorua

Notorious Russian troll farm also took swipes at Canadian targets

Targets included oil infrastructure and Prime Minister Justin Trudeau.

Cirque du Soleil aerialist dies after fall during Florida show

Longtime performer fell while performing in VOLTA

Most Read