British Columbia’s economy is rebounding faster than expected due to COVID-19, although pandemic uncertainty remains.
In its first quarterly update for 2021-22, the province forecast a deficit of $ 4.8 billion on Monday, about half of what was projected in the 2021 budget.
The province’s April budget forecast a deficit of $ 9.7 billion for the fiscal year.
British Columbia government unveils 2021 budget
The better-than-expected recovery includes increases in personal and corporate income tax revenues, natural resource revenues and federal funding largely linked to the pandemic response and Colombia’s recovery measures -British, as well as childcare services.
The province’s spending increased by $ 1.4 billion, half of which was due to the costs of fighting wildfires.
The tourism sector is still struggling, seeing an increase in income from domestic tourism throughout the summer, but still well below pre-pandemic levels.
Uncertainty also persists due to a pandemic that still has no end in sight. The planned allocation will remain unchanged in the provincial budget.
“We have seen significant changes in the projections for British Columbia, Canada and the world as the pandemic evolves, and we know we will see more changes as we move forward in the recovery,” said the pandemic. Minister of Finance, Selena Robinson.
British Columbia Budget 2021: Supporting Tourism Recovery
The province has allocated $ 3.25 billion in pandemic and recovery contingencies to implement health and safety measures, targeted supports for businesses and people most affected by the pandemic, and additional funding for continue efforts to recover the economy.
The government still plans to detail a trajectory and timeline of how it intends to return to balance under the 2022 budget.
British Columbia’s real gross domestic product is expected to increase 6.0% in 2021 and 4.0% in 2022.
British Columbia’s economy begins to recover as COVID-19 restrictions ease
The labor market has shown signs of continuous improvement and total employment has exceeded pre-pandemic levels.
British Columbia’s unemployment rate in August was 6.2 percent, compared to the national average of 7.1 percent.
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