B.C. deficit forecast rises to $13.8B after gas royalty error

British Columbia’s deficit forecast has increased by about $450 million to $13.8 billion, after the province identified a calculation error tied to natural gas royalties. Finance Minister Josie Osborne, who recently took over the portfolio, released the first quarterly update showing revenues were nearly $800 million higher than expected. However, stronger revenue was offset by higher spending, including wildfire fighting costs that are now projected to be $614 million more than planned. The province also said refundable tax credits for businesses and renters have increased by $458 million. At the same time, lower natural gas royalty revenue reduced the bottom line, including a $306 million mistake in the budget’s natural gas price forecast. The Finance Ministry said exports have improved, helped by demand for copper and stronger shipments to markets including China, South Korea and India.