Thursday August 22, 2024
by Mary P Brooke | Island Social Trends
Today BC Finance Minister Katrine Conroy presented a fiscal update of the province’s finances as at March 31, 2024 fiscal year end for 2023-24.
This comes just weeks ahead of the campaign launch for the BC 2024 provincial election.
“We are still facing challenges,” said Conroy today. She acknowledges that interest rates have gone down but she hears from in the private sector that it will take a couple of years to really make a difference.
Putting people first:
Public accounts show BC ended the year with a deficit of $5.035 billion which is lower than in more recent forecasts, but $819 million higher than Budget 2023 due to increased emergency spending, lower natural-resource revenues, and increased support for priority services, including health care, education and housing as B.C.’s population continued to see record growth.
[See August 22, 2024 BC Ministry of Finance news release: Public accounts show B.C. put people first amid wildfires, global challenges]
Putting people first while dealing with wildfires and the impacts of global challenges has resulted in the numbers presented today. “We won’t take deep cuts as some people are proposing… but will continue to support people,” said Conroy — noting health-care, education and emergency responses in particular but also including the range of services that people are relying upon during the continuing affordability crisis.
The Province supported people through a record wildfire season and a global economic slowdown in 2023-24, while continuing to build the schools, hospitals and homes people need.
“With British Columbians continuing to face challenges amidst high inflation, a growing population and climate emergencies, we remained focused on supporting people and the services they count on,” said Katrine Conroy, Minister of Finance. “Record wildfire costs and the impacts of slower growth added to challenges, but B.C. was an economic leader in Canada, and we have continued to build a stronger, more secure B.C. for everyone.”
B.C. had higher-than-expected revenue from most sources, offset by reduced revenues from the natural-resource sector amid lower prices.
Expenses were higher than Budget 2023 to support priority services and respond to climate emergencies. The Province spent $1.1 billion on fire management – the highest year on record – and $401 million more than budget under the Emergency and Disaster Management Act in response to flooding and other events.
Capital spending:
To support a growing population and build an economy that works better for people, the government says it has focused on building the infrastructure communities need, including hospitals, schools, homes, transit and roads. The Future Ready Action Plan was launched to provide people with the skills they need to get good-paying jobs.
The Province spent $8.8 billion on taxpayer-supported capital projects to build schools, roads, public transit, hospitals and housing. This includes:
- $3 billion for key health facilities
- $2.4 billion to expand and improve B.C.’s transportation network
- $2.1 billion for K-12 and post-secondary schools
Can’t afford a deficit of services:
“Some say we should respond to challenges by making deep cuts to services and leaving people to fend for themselves, but that’s the wrong approach,” Conroy said.
“With a slower world economy and a growing population, we cannot afford to have a deficit of services. When we provide the services and support people need to build a good life, it makes our economy stronger and more resilient.”
At 1.6%, B.C.’s 2023 economic growth outpaced the national average. BC continues to have one of the best credit ratings and one of the lowest debt-to-GDP ratios among provinces.
Faced with an economic slowdown and a need to respond to climate and weather emergencies, taxpayer-support debt increased by $15.514 billion from 2022-23 to ensure programs could support people in the province through the year and into the future as BC’s population grows.
Public accounts for the previous fiscal year are part of ensuring transparency and accountability within government’s finances.
The next report on provincial finances will be the first quarterly to be released in September.
===== RELATED:
- NEWS SECTIONS: BC ELECTION 2024 | POLITICS
- Public accounts show B.C. put people first amid wildfires, global challenges (BC Ministry of Finance – Aug 22, 2024)