BC Surplus Predicted to Grow
By 250 News
A healthier economic outlook for 2006 is helping to increase British Columbia’s surplus, says Finance Minister Carole Taylor, but emerging economic and natural resource risks still poses challenges for the province.
The First Quarterly Report for 2006/7 was released today, with the surplus for 2006/7 now forecast at $1.2 billion, up from the $600 million expected at budget. Improved surpluses are also being forecast for the following two years.
"Overall, B.C.'s economy is performing very well this year and that's having a positive impact on the Province's bottom line," says Taylor. "But there are a few areas where a watchful eye is needed."
Total revenue for 2006/7 is now predicted to be about $1 billion higher than expected at budget, due to increased taxation revenue and higher BC Hydro income. However, this is offset by a $774 million decrease in natural gas revenue.
Government spending is now forecast to be $722 million higher because of higher forest fire costs, additonal spending by school districts, post secondary institutions and health authorities, and because of Negotiating Framework incentive payments for agreements concluded in 2006/7.
"With any fiscal plan, there are things you can influence and others you can't," says Taylor.
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