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

Avalanche Canada issues special public warning

Very weak layer buried under recent snow a cause for concern

From the Hill: The millstone of a cannabis conviction

Richard Cannings writes about records expungement for cannabis convictions

Tips for avoiding Canada Revenue Agency scams

Grand Forks RCMP are asking residents to be vigilant.

Grand Forks celebrates the holidays with Santa Claus parade, light up

The Christmas tradition was a hit on Friday night.

RDKB receives funding for disaster response ‘work space’ in Midway

The work space and storage will be used by disaster response volunteers.

Trudeau to make it harder for future PM to reverse Senate reforms

Of the 105 current senators, 54 are now independents who have banded together in Independent Senators’ Group

Boeser has 2 points as Canucks ground Flyers 5-1

WATCH: Vancouver has little trouble with slumping Philly side

Man dies after falling from B.C. bridge

Intoxicated man climbed railing, lost his balance and fell into the water below

B.C. animation team the ‘heart’ of new ‘Spider-Man: Into the Spider-Verse’

The animators, largely based in Vancouver, ultimately came up with a creative technique that is drawing praise

Light at the end of the tunnel for UN climate talks

Meeting in Katowice was meant to finalize how countries report their emissions of greenhouses gases

Janet Jackson, Def Leppard, Nicks join Rock Hall of Fame

Radiohead, the Cure, Roxy Music and the Zombies will also be ushered in at the 34th induction ceremony

Supreme Court affirms privacy rights for Canadians who share a computer

Section 8 of the Charter of Rights and Freedoms protects Canadians against unreasonable search and seizure

B.C. fire chief pleads with Ottawa for traumatic stress support

Campbell River fire chief Thomas Doherty presented concerns to federal government

21 detained before Paris protests as police deploy in force

There was a strong police presence outside the central Saint Lazare train station, where police in riot gear checked bags

Most Read