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

More bats nothing to worry about, say Okanagan experts

The Okanagan Community Bat program says residents may see more young bats around

BCHL hockey is back with announcement of Okanagan Cup

The BCHL four-team tournament starts Friday, Sept. 25

Kiera Bourque’s sentence ‘an embarrassment’: family of deceased Penticton teen

Bourque was sentenced to one year in prison for her role in the 2017 death of Devon Blackmore

B.C. reports 91 new cases as officials remain worried over ‘clusters of COVID-19

There have now been a total of 8,395 cases in B.C. since the pandemic began

30 new COVID-19 cases reported in Central Okanagan health region in August

The 30 new cases reported in August brings the total number in region to 239

Suspects steal $30,000 in glasses from Okanagan business

Jimmy Choo, Smith, Ray Ban, Tom Ford and Maui Jims taken from optometry

Shuswap man ‘started to lose it’ after learning of lottery win

Sorrento resident wins $100,000, ticket purchased at Copper Island Pub

Okanagan Beach Club fined for not complying to COVID-19 rules, tiki bar closed

Interior Health order the tiki bar closed due to non-compliance with Provincial Health Officer orders

Water off for some Okanagan residents

Emergency repair in Lake Country

B.C. Green leader says NDP abandoning environmental plan

Horgan’s claim of unstable government false, Furstenau says

Transgender B.C. brothers debut fantasy novel as author duo Vincent Hunter

‘Transgender people are being misrepresented in popular fiction and media, and we aim to change that’

Kelowna RCMP seize drugs, weapons from downtown residence

Search warrant was in relation to an active criminal investigation into suspected drug trafficking

Most Read