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

Downtown Maple Ridge BIA helping to stock the shelves for the food bank

Participating businesses will have donation boxes available for the month of October

City of Maple Ridge continues the hunt for new industrial land

Since 2014, 203 acres of industrial land has been designated for future employment needs

Fraser health sends letter warning of possible COVID exposure at Maple Ridge school

Parents of students at Yennadon Elementary were told an individual at the school has contacted virus

LETTER:

Catch much more BC Votes 2020 coverage from the Black Press Media in days and weeks to come

Langley man arrested in connection with $264,000 drug and cash bust in Grand Prairie

Police have warrants out for Christine Emes and Christopher Gilliat, also from Langley

B.C. records 98 more COVID-19 cases, most in Lower Mainland

One new senior home outbreak, Surrey Memorial outbreak over

VIDEO: COVID won’t dampen Lower Mainland woman’s Halloween spirit

Langley’s Tanya Reid posted video offering suggestions of how trick-or-treating might look for her

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

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

Father hopes journey to aviation-safety program inspires hope

Former South Surrey resident Greg Sewell hasn’t given up on quest to mandate older-plane retrofits

$250K reward offered as investigation continues into Sea to Sky Gondola vandalism

Police also asking for specific footage of Sea to Sky highway around time of incident

Trudeau ‘disappointed’ by RCMP treatment of Sikh officers over mask issue

World Sikh Organization of Canada said taking Sikh officers off the front lines constitutes discrimination

Most Read