Wildfire spending is largely to blame for a $2.5 billion jump in BC’s projected year-end deficit, according to the Province.
That projection comes from the province’s first quarterly report of the year, which also blames high interests rates, and a slowing global economy.
Since the release of Budget 2023, projected expenses have risen by $996 million, with most going to wildfire response and protections.
But forecasted revenues have also dropped by $1.5 billion, owing largely to a volatile global natural gas market.
Natural gas prices have already dropped by 50 percent and are predicted to be $2.2 billion lower than initial forecasts over the next three years.
Capital spending forecasts have also gone up by $413 million to support new projects in the housing and health care industries.
Despite now running a deficit of $6.7 billion, the debt-to-GDP ratio remains among the lowest in Canada at 17.6 percent.
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