One-time contributions from the federal governmentB次元官网网址檚 vast deficit spending brightened B.C.B次元官网网址檚 financial picture for the year dominated by the COVID-19 emergency, the provinceB次元官网网址檚 annual public accounts report shows.
In the midst of the pandemic last fall, with businesses forced to close and unemployment rising, B.C. Finance Minister Selina Robinson forecast a deficit of more than $13 billion. But a surging real estate market and job recovery delivered higher-than-expected income and property transfer taxes, contributing to an operating deficit of $5.5 billion when the books were closed for 2020-21. ThatB次元官网网址檚 an improvement of $2.7 billion since April, when RobinsonB次元官网网址檚 first budget was presented, two months later than usual.
B次元官网网址淲hile provincial expenses significantly increased and provincial tax revenue dropped as government delivered pandemic response and recovery programs, provincial revenues were higher than expected due to federal government one-time pandemic contributions,B次元官网网址� Robinson announced July 28.
Revenue changes since B.C.'s 2020 budget was presented just before hit
B次元官网网址� Tom Fletcher (@tomfletcherbc)
As of March 31, B.C.B次元官网网址檚 total provincial debt stood at $87.1 billion, up $14.9 billion during 2020-21. About 31 per cent of that debt is accumulated by commercial Crown corporations such as B.C. Hydro and the Insurance Corp. of B.C., and is considered self-supporting debt, to be financed by the corporations.
The audited public accounts show that ICBC made it back into the black, with net income of $1.5 billion, up from a $376 million loss in 2019-20. ICBC recently paid out small rebates to customers to share savings from reduced accident claims during travel restrictions and workplace closures during the pandemic.
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Pandemic response and recovery programs totalled $10.1 billion for the year, with $2.57 billion of that going to health, child care, temporary housing and essential services, and $1.3 billion for recovery efforts such as job creation and training, community infrastructure and social supports.
Another $2.9 billion went to financial support, including pandemic recovery benefits of $1,000 per family and $500 for individuals, announced before last fallB次元官网网址檚 snap election without requirement to show pandemic income loss. Other pandemic spending included temporary rent supplements for individuals and businesses, and an emergency benefit for workers to supplement the Canada Emergency Response Benefit for people who lost income.
RobinsonB次元官网网址檚 April budget forecast more than $19 billion in deficits over three years, with much of the new spending built in permanently for health care, education, public safety and other program expansions.
tfletcher@blackpress.ca
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