British Columbia has updated its provincial deficit forecast to $12.8 billion for the 2020-21 fiscal year due to the economic challenges presented by the COVID-19 pandemic, according to the first-quarterly report for the year.
The province’s report said that revenue declines in taxation and natural resources, as well as government spending on support for people and businesses, have led to the updated provincial deficit.
“The pandemic has threatened lives and livelihoods, and our government responded with one of the most supportive, comprehensive action plans in the country,” British Columbia’s Minister of Finance, Carole James, said in a statement.
However, the first quarterly report also said that the overall impacts on revenues and expenses were lower than initially anticipated with an actual decline of $5.7 billion, compared to the province’s expected decline of $6.3 billion.
“Since the province’s July fiscal and economic scenario, we have seen stronger than expected consumer spending, housing activity and employment gains,” James said. “These gains are offset by increased prudence to help B.C. weather the long road ahead.”
According to the press release from the British Columbia government, the province’s real gross domestic product is forecast to decline by 6.7 per cent in 2020, before increasing by three per cent in 2021.
From May to August, British Columbia has also regained about 62 per cent of the total number of jobs lost in February, but there are still 149,600 less jobs in August than in February.
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