B.C. Finance Minister Carole James speaks at the B.C. legislature, June 23, 2020. (B.C. government)

First round of COVID-19 cost B.C. government $600 million

Fall of revenue included $285 million for ICBC

The first bite of the COVID-19 pandemic cost B.C. $595 million, with plunging tax revenues and soaring spending reversing economic growth this spring.

B.C. Finance Minister Carole James released the province’s audited public accounts Aug. 31, showing the initial impact of the coronavirus measures on the economy up to the end of March. A projected surplus was quickly replaced by a deficit of $321 million, $597 million lower than the surplus that had been predicted in the February 2020 budget.

The true impact of the pandemic is still unfolding. The province suspended business payments for sales tax, employer health tax and hotel tax, and has reserved $1.5 billion for further business relief may affect the final result.

The B.C. Liberal opposition has called on the NDP government to forgive the deferred taxes collected by struggling business. Surrey South MLA Stephanie Cadieux, the party’s finance critic, said B.C. is lagging behind other provinces in developing an economic recovery plan.

“Today’s public accounts showed that revenues were slowing well before the pandemic,” Cadieux said. “This is entirely due to the NDP’s lack of economic vision and continued reliance on raising taxes to fulfill their plans.”

The B.C. Liberal opposition has called on the NDP government to forgive the deferred taxes collected by struggling business. The finance ministry has already estimated that the current year’s deficit will end up at $13.5 billion by the time it ends next spring, with an additional $1 billion borrowed this summer to match federal aid to transit and other economic supports.

James said the Insurance Corp. of B.C. saw $285 million less revenue that forecast due to the early weeks of the pandemic, with people cancelling insurance or delaying renewals. The pandemic effects include $397 million less personal income tax revenue and $171 million less in property taxes.

James emphasized that B.C.’s credit rating and debt were in a strong position to deal with the pandemic.

“We started with zero operating debt, a triple-A credit rating and the lowest unemployment rate in the country,” James said.

RELATED: B.C.’s potential deficit spikes to $12.5 billion

RELATED: B.C. moves to allow three years of deficits


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

To build or not to build: Grand Forks community centre to go to city, district referendum

Plans to build a community centre have been in the works since 2018

Russell selected as B.C. NDP candidate for Boundary-Similkameen

The director for the Regional District of Kootenay Boundary was chosen over Oliver councillor Grice.

Education ministry’s COVID plan could do more for SD51, says teachers’ union president

There have been no confirmed COVID cases two weeks into school year

Midway council meeting cancelled after most councillors unable to attend

Councillors gave advance notice, meeting cancelled ahead of schedule

Vanessa Chartier to host all candidates forum at MacArthur Centre

Voters can watch the forum on Facebook Live

BC Liberal Leader talks drug addiction in the Lower Mainland

Drug addiction and public safety a top priority says Andrew Wilkinson

Pandemic derails CP Holiday Train

Canadian Pacific will work to get donations to food banks while also producing an online music concert

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Local councils important, Horgan says as municipal conference ends

B.C. NDP leader says ‘speed dating’ vital, online or in person

Penticton woman sentenced to one year in prison for manslaughter of teen boyfriend

Kiera Bourque, 24, was sentenced for manslaughter in the 2017 death of Penticton’s Devon Blackmore

B.C. Green leader says NDP abandoning environmental plan

Horgan’s claim of unstable government false, Furstenau says

Most Read