Michael de Jong, Minister of Finance –

“With a provincial budget of almost $45 billion, the current forecast surplus of $444 million is still a modest amount. While this quarterly update demonstrates there have been some positive short-term gains, we’re committed to continuing to exercise fiscal discipline to ensure B.C.’s budget remains balanced.”

B.C. remains on target to balance the 2014-15 Budget with a projected year-end surplus of $444 million, up by $178 million since the First Quarterly Report, Finance Minister Michael de Jong announced today.

Revenue for 2014-15 is forecast to be $45.5 billion, which is $194 million higher than the First Quarterly Report projection. Increases in revenue from taxation sources, federal transfers and net income of commercial Crown corporations were partly offset by lower natural resource revenues. Much of this net gain in revenue is not expected to carry forward into future years.

Total government spending is forecast to be $16 million higher than projected in the First Quarterly report, partly due to higher spending by health authorities to respond to demand for services. Spending by government ministries is forecast to be down $29 million, compared to the first quarter forecast, partly due to lower debt servicing costs.