The provincial government’s $309 million deficit in the 2010-11 fiscal year is about 82% less than the $1.7 billion that former Finance Minister Colin Hansen first forecast last year.
Hansen later said the deficit would be lower than that first figure but he never specified a lower target.
Current Finance Minister Kevin Falcon told media July 18 that lower spending and stronger economic growth boosted Victoria’s revenue in the year that ended March 31.
B.C.’s economy grew by 4% in 2010, according to preliminary data from Statistics Canada. That’s third among the provinces and better than the national average rate of 3.3%.
Falcon said in May that B.C.’s provincial deficit in the current fiscal year could bloat to $2.57 billion if voters reject the HST in the ongoing referendum.
Elections BC must receive HST referendum ballots by August 5, or two weeks later than the date printed on the ballots, because the Canada Post lockout delayed some voters getting ballots.
If voters accept the HST, Falcon projects a $769 million deficit in the 2011-12 fiscal year. That would decline to a $434 million deficit in 2012-13 and a $64 million deficit in 2013-14.
Under a PST-GST regime, Falcon expects a $543 million deficit in 2012-2013 and a $356 million deficit in 2013-14.
Glen Korstrom
Twitter: GlenKorstrom