VICTORIA, B.C. – The Provincial Government is forecasting a deficit of $13.6 billion, as outlined in the Fall 2020 Economic and Fiscal Update.
According to Minister of Finance Selina Robinson, the deficit includes an additional $2 billion for new COVID-19 supports for British Columbians through B.C.͛s Recovery Benefit and Recovery Supplement.
Robinson says the Province’s third economic and fiscal update of 2020 continues to show the economic impacts of COVID-19 on people, businesses, and communities, while 2021 brings hope to British Columbians with a path toward recovery.
“2020 has been a tough year for families, communities, and our economy. I am encouraged by the economic improvement we͛re seeing, but I know not everyone has been similarly affected. ͞We will continue to support people and businesses through this pandemic and into a brighter year with the first vaccinations already arriving in B.C.”
The update also shows a lower impact on provincial revenues than projected in the First Quarterly Report, with gains in income, property transfer taxes, and Crown corporation net incomes.
When looking at Crown corporations, ICBC’s net income is $410 million, which is mainly due to savings from lower claims costs because of fewer accidents and a recovery of investment losses sustained at the end of 2019/2020.
Partial economic recovery is predicted for B.C. in 2021, and the report shows continued areas of economic improvement in employment, retail sales, and housing activity.
The full Economic and Fiscal Update can be found on the Province’s website.