$450 Million Deficit Boost: BC Government Struggles with Natural Gas Royalties Error
The British Columbia government's deficit forecast has increased by $450 million to a record-setting $13.8 billion due to a calculation error on natural gas royalties, according to Finance Minister Josie Osborne.
The added revenue comes from income and sales taxes, but wildfire fighting costs are projected to be $614 million more. If the province had a different wildfire season, the deficit would have been lower, said Osborne.
The government also reported increased refundable tax credits for business and renters by $458 million. However, projected royalties from natural gas fell by $531 million due to lower prices and a $306 million error in the price forecast.
Peter Milobar, former finance critic for the B.C. Conservatives, said this demonstrates that the government has no control over provincial finances. He called it a 'fiscal crisis' and stated that there is a path toward balancing the budget through private-sector growth and development.