B.C.’s Finance Minister says the second quarter update shows that the province’s economy is still ‘strong and sustainable.’
Carole James says the province is forecasting an operating surplus of $148 million in the second quarter, down $31 million from first quarter projections.
“We’re not immune to global challenges. The second quarter highlights that. It points out how international forces have very real impacts here at home,” she said. “Any money that is saved by ministries, helps address pressures that ministries are facing, and we want to make sure that every dollar we spend is going towards people.”
James says the ongoing financial woes at ICBC and well as the downturn in the forest sector continue to remain challenges for the province’s bottom line.
“Lumber mills are cutting back or closing their doors after the devastation caused by the mountain pine beetle and record forest fires,” she noted. “We’re seeing challenging marker conditions and volatility with lumber prices and its taking its toll.”
Despite that, James says the province is expecting a 1.7 per cent growth in GDP this year, and 1.9 per cent next year. And she notes the province is preparing for any global uncertainties that might lie ahead.
“And it is out government’s job to make sure that we make the right choices of growing a strong economy and investing in people,” James added. “[We are] the only province with a AAA credit rating, one of the lowest unemployment rates in the country and zero operating debt, while we still maintain record levels of capital spending.”
She says the government has maintained its forecast allowance at $500-million, while increasing the contingency funding by $100-million to $550-million to mitigate against those potential risks to the budget.
Opposition Liberal critic Shirley Bond said the NDP continues to be reliant on taxes to keep its budget balanced while economic growth slows.
“John Horgan’s government has no more money to pay for the billions of dollars of promises they made like $10-a-day childcare, the $400 renter’s rebate, and the elimination of school portables, these are all broken NDP promises,” said Bond.
