The province has forecasted a $9.7-billion-dollar deficit for this fiscal year, and says it could take at least seven years before the return of a balanced budget.

Today’s forecast from Finance Minister Selina Robinson is a substantial improvement from what was forecast in December, where Robinson was projecting a $13.6-billion-dollar deficit.

In the 2020-21 fiscal year, which ended March 31, the deficit was $8.6 billion, with COVID-19 supports driving up costs for government.

For this year, some of the budget spending highlights include $3.25 billion in Pandemic and Recovery Contingencies. As was announced last week, $2 billion will go to a loan program to incentivize developers to build affordable housing.

Another $900 million is set aside for continuing to respond to COVID-19, through administering vaccines, contact tracing, and testing and screening for the virus. The CleanBC program will be getting a top up of $506 million for clean energy investments. Another $120 million will go to supporting tourism recovery, and an increase of $60 million for the Ministry of Indigenous Relations and Reconciliation.

The budget will see monthly and income disability rates permanently raised by $175 per month and the seniors supplement increased by $50 per month permanently.

Children aged 12 and under are also now able to ride public transit for free across the province.

Robinson is promising that in the next year, her ministry will unveil a detailed timeline for returning to balanced budgets.

Spending for this fiscal year will total $69 billion. The province says B.C.’s gross domestic product dropped by 5.3 per cent last year, and is projected to rise by 4.4 per cent this year and 3.8 per cent in 2022.