B.C. is forecasting a slightly smaller surplus, but still expects to be in the black this year, as it launches consultations for next year’s budget.
The province said today that its year-end surplus for 2013-2014 is now projected to be $136 million, which is down by $17 million from the forecast in its budget update in June.
Revenues are coming in higher than forecast, but so are expenses. The government says that revenues have improved by $69 million, but expenses are up by $86 million, “primarily for statutory spending on fighting fires and flood-related emergency programs.”
Its forecast for the provincial economy remains unchanged, with real GDP growth expected to come in at 1.4% in 2013 and 2.2% in 2014. The debt-to-GDP ratio is now forecast at 18.3%, slightly improved from June.
Today, the government also released a consultation paper for its 2014 budget, which asks for input on maintaining a balanced budget. The Select Standing Committee on Finance and Government Services will also be holding public consultations around the province in September and October.
“Ongoing challenges in the global and domestic economies means we must continue to exercise the discipline that helped produce the balanced budget, and sustain our commitment that we will not spend more money than taxpayers send to government,” said the province’s finance minister, Michael de Jong.