UPDATE: Income tax lifts BC's surplus to $5B over estimate

(UPDATE: Nov. 25 @ 9:17 am): Faster-than-expected economic recovery has pushed British Columbia’s operating surplus to $5 billion more than estimated in the last quarter.

Finance Minister Selina Robinson says much of the added surplus comes from higher personal and corporate income taxes, while sales taxes and natural gas royalties were also higher.

The minister says the operating surplus of $5.7 billion, up from $706 million, puts the province in a “significant surplus position," to continue using its resources to deliver results on housing, public safety, health care and climate change.

“We will use these dollars we have to invest in things people need. We’re in a strong position to continue making thoughtful decisions.”

Robinson says $2 billion of the added revenue has already been earmarked for cost-of-living measures announced since the summer.

Those include $1 billion for the Climate Action Tax Credit and BC Affordability Credit increases, $395 million for car insurance rebates and $320 million for a one-time electricity bill credit.

Since being sworn-in on Nov. 18, Premier David Eby has made several spending announcements, including pledging $230 million in police funding to hire hundreds more officers.

Eby has said the BC economy is doing well and the province's budget can cover the cost of his latest plans.

(Original story: Nov. 25 @ 5:05 am): British Columbia's strong economic performance will be a major part of today's fiscal update, but the finance minister says she'll also issue cautions about inflation pressures and rising interest rates.

Selina Robinson says the numbers she presents as part of the province's quarterly budget update will show an economy continuing to grow despite the ongoing COVID-19 pandemic.

The minister's last update in September forecasted a budget surplus for the current fiscal year of $706 million.

Robinson's update comes a week after the swearing-in of new Premier David Eby, who has already made several spending announcements adding up to more than $1 billion.

Eby promised to spend millions for more RCMP officers, initiated a public safety campaign and has arranged a $100 credit for residents on their electricity bill from the Crown utility.

The premier has said the BC economy is doing well and the province's budget can cover the cost of his latest plans.