Opinion: B.C. has a revenue problem, not a spending problem

In recent days we’ve heard much about how the provincial government has gone from surpluses to an $11.6-billion projected deficit.

$11.6 billion sounds enormous. But at 2.6 per cent of GDP, this deficit isn’t unprecedented — B.C. ran slightly larger deficits in 1982 and 1991.

B.C.’s debt has increased sharply in recent years, but it remains one of the lowest in the country as a share of GDP. Projected increases to 2027-28 would leave it in the middle of the pack among provinces and lower than Ontario’s today.

As one of Canada’s wealthiest provinces with the third-highest GDP per capita, B.C. can manage this fiscal challenge if we address its root causes.

The most telling statistic: B.C.’s own source revenue — taxes, fees and royalties the province has control over — has plummeted from