Increased tax revenues and steady economic growth have tripled the size of B.C.91裸聊视频檚 budget forecast for 2018-19, as changes made by the NDP government begin to show their effects on the province91裸聊视频檚 books.

Finance Minister Carole James released the first quarter financial results for the province Friday, projecting a surplus that has jumped to $669 million for the fiscal year ending next March.

The red-hot urban B.C. real estate market is 91裸聊视频渕oderating,91裸聊视频� resulting in declining revenue to the province, James said. The revenue fell by $53 million during the first quarter, from April through June, resulting in a projected drop of $250 million for the entire year.

Housing market starting to moderate, BC surplus forecast up to $669M despite declining property tax revenues say

91裸聊视频� Tom Fletcher (@tomfletcherbc)

That was more than made up by a projected increase of more than $1 billion in income tax revenue. Natural resource revenue is also projected to be up $495 million, mainly due to record high lumber prices.

Projected expenses are also up more than $1 billion, led by forest fire costs now estimated to be $477 for the current year. Emergency efforts for flooding also rose $162 million compared to the forecasts in the February budget.

James said the province91裸聊视频檚 employment picture continues to be the strongest in the country, helping drive the increase in income tax revenue. The threat is that people can get jobs but can91裸聊视频檛 find a place to live.

91裸聊视频淚f we don91裸聊视频檛 have affordable housing, people won91裸聊视频檛 stay in the province,91裸聊视频� James said.

B.C. Liberal leader Andrew Wilkinson said the first quarter results are looking backward, and looking forward things are not so good.

91裸聊视频淭he NDP inherited a $2.7 billion surplus and the strongest economy in Canada, and now they91裸聊视频檙e projecting a slowing of growth, a 20 per cent drop in housing starts, which is a formula for widespread unemployment,91裸聊视频� Wilkinson said. 91裸聊视频淎nd since they took office, the only job growth has been in government, with 10,000 new public sector jobs, and in the meantime 25,000 people in the private sector have lost their jobs.91裸聊视频�

Another worry is trade, with the U.S. government threatening to pull out of the North American Free Trade Agreement and uncertainty continuing over lumber and other exports to the U.S.

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One of the NDP government91裸聊视频檚 measures that has not yet shown up on the books is the introduction of an employers91裸聊视频� health tax on public and private payrolls over $500,000.

RELATED: Payroll, speculation tax tops B.C. municipal agenda

James reiterated that municipalities will not be getting a break on the new tax, which comes on top of reduced employee Medical Services Plan fees for 2019, before MSP premiums are phased out.

91裸聊视频淵es, they have a challenge in 2019, but we believe the benefit 91裸聊视频� of eliminating medical services premiums far outweigh the one-year challenge that they face,91裸聊视频� James said.

tfletcher@blackpress.ca
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