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

Road report for Highway 20

Fog patches and slippery sections; Drive BC

Woman killed in head-on crash near Vanderhoof

RCMP say driver crossed the centre line and hit a loaded fuel tanker truck

Mining company prospecting for gold near Bella Coola

Gold discovered in alpine areas where glaciers are receding

‘Tripod’ delays access to Unist’ot’en camp

Social media rumours of cultural significance quashed, meaning police “exclusion zones” should end.

Hereditary chiefs negotiate injunction agreement

Wet’suwet’en hereditary chiefs abide by interim injunction, but gate stays up. Still opposed.

VIDEO: Car flies across median, flips over edge of B.C. overpass

Dash cam footage shows vehicle speeding across Brunette Avenue overpass in Coquitlam

Indigenous energy summit includes session on pipeline ownership options

Steven Saddleback of the Indian Resource Council says a session will feature presentations on financing models

Japanese grand champion Kisenosato retires from sumo

The 32-year-old Kisenosato was the first Japanese-born wrestler in 19 years to gain promotion to sumo’s highest rank

UPDATE: Accused B.C. high school killer found fit to stand trial

Gabriel Klein is accused in the 2016 stabbing death of Letisha Reimer at Abbotsford Senior Secondary

Right-wing, neo-Nazi, white supremacist groups an increasing concern: Goodale

Ten people died in April 2018 when Alek Minassian allegedly drove a rental van down the busy stretch in Toronto

Canadian stock exchanges to conduct lottery for ‘POT’ ticker amid high demand

The symbol became available after fertilizer Potash Corp. officially merged with Agrium Inc. in early 2018

Millennial Money: Don’t let Instagram envy get you into debt

A full 48 per cent of U.S. households have credit card debt

Jury debates fate of man accused of killing 12-year-old B.C. girl 40 years ago

Police allege Garry Handlen told a cop how he abducted, sexually assaulted and strangled Monica Jack in May 1978

Most Read