British Columbia ends 2015-2016 with larger-than-expected surplus

[Sheba]

British Columbia said on Thursday that it ended its 2015-2016 fiscal year with a larger-than-expected budget surplus, bolstered by higher tax revenues, including a 43.9 per cent jump in its property transfer tax revenues.

The western Canadian province ended the year with a surplus of $730-million, up from the $377-million projected in February, and said it remains on track to balance the 2016-2017 budget.

The province said it received $1.2-billion more in tax revenue in 2015-16 than forecast in its original budget, led by a $468-million jump in property transfer tax revenues compared with the previous year.

That massive rise was fuelled by increased activity and higher values in the property market, the province said in a statement. The province charges a transfer tax ranging from 1 per cent to 3 per cent on almost all property sales.

While housing prices have increased across much of British Columbia, the Greater Vancouver area has led the boom, with the cost of the typical residential property jumping 32 per cent to $917,800 in June.

The property transfer tax gains outweighed a sharp decline in revenues from the province's oil, gas and mining sectors, which have struggled in face of falling natural resource prices and delays to proposed liquefied natural gas projects.

Revenues from petroleum, natural gas and mineral industries fell by $464-million, compared with the previous year.

British Columbia, which has a AAA credit rating, said total provincial debt was $65.29-billion in 2015-16. The debt-to-GDP ratio, which peaked at 17.9 per cent in 2013-14, was 17.4 per cent, in line with estimates.

The Globe & Mail

...and this money will go into the gov's coffers instead of paying for much need infrastructure repairs and improvements because... ?