‘The final quarter of the fiscal year brought many challenges,’: Province in position to weather COVID-19 financial impacts

Aug 31, 2020 | 11:34 AM

VICTORIA—The COVID-19 pandemic had an impact in the Province’s 2019-20 financial results, despite the fiscal results of the first three quarters of the year.

“While the first three quarters of 2019-20 reflected a modest surplus and steady economic growth, COVID-19 led to lower tax revenues and losses at ICBC in the fourth quarter,” said Carole James, Minister of Finance.

“Despite the impacts of COVID-19, I am encouraged that B.C. continues to show positive signs, including improving employment numbers, robust capital spending and the best debt affordability in Canada.”—Carole James, Minister of Finance

The fiscal year ended with a deficit of $321 million, which is $595 million lower than the surplus projected in Budget 2019 due to several reasons.

Some of those include costs related to B.C.’s initial COVID-19 response, such as public health measures; lower taxation revenue due to COVID-19; and a $298 million ICBC investment loss due to market conditions from COVID-19.

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“B.C. isn’t alone in facing these challenges, but we are in a strong position to weather them. The investments we made in 2019-20, such as eliminating MSP premiums and investing in child care and housing, will make life more affordable and support people through COVID-19 as the Province develops a strong economic recovery plan.”—Carole James, Minister of Finance

The Province says that Public Accounts 2019-20 show that the province is in good financial standing with affordable debt levels at the end of the fiscal year and continued to lead the country as the only AAA accredited province. Provincial gross domestic product (GDP) for 2019 grew by 2.8%, above the national average of 1.7%.

Photo Courtesy: Province of British Columbia, Flickr.

by Veronica Beltran

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‘The final quarter of the fiscal year brought many challenges,’: Province in position to weather COVID-19 financial impacts

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