B.C. posts $1.3B budget surplus for 2021-22, in contrast to earlier forecast of large deficit

B.C.'s economic recovery last year was stronger than forecast, with the province's audited budget numbers showing a surplus of $1.3 billion, in contrast to an earlier projection of a deficit nearing $10 billion.

Finance Minister Selina Robinson said Tuesday the province's economy in 2021-22 outperformed both public and private sector predictions.

The April 2021 budget, delivered during some of the darkest days of the COVID-19 pandemic, originally forecast a deficit of $9.7 billion, but revenues improved throughout the year.

Robinson said the improvement can be attributed to reopening the economy and the resultant increase in tax revenue, one-time federal contributions for COVID-19 and disaster events, higher natural resource revenues and higher Crown corporation earnings, especially at the Insurance Corporation of B.C.

She said in a statement the "economic strength'' demonstrated by the surplus will be put toward new inflation-fighting measures next month.

The province introduced a $60-million education support fund this week to help schools expand meal programs and assist families with school supplies and field-trip costs.

Robinson told a news conference that the "unexpected surplus'' was a positive development, but uncertainties ranging from the global economy to COVID-19 and inflation continue to loom.

"Today is different than it was last year and the year before that,'' said Robinson.

In the statement, Robinson said that instead of implementing "cuts and austerity'' amid the pandemic, the government had opted to invest and that had paid off.

"Last year was an incredibly challenging year for British Columbians with the pandemic, coupled with devastating climate disasters,'' she said.

"Through the challenges we've faced together, we've made record investments to ensure targeted supports were available to those who needed them most and to continue building the services and infrastructure people count on.''