Photo: Contributed

BC Finance Minister Mike de Jong says the province had a balanced budget for the second quarter, and is on track to balance the overall 2014-15 budget.

de Jong says the forecast year-end surplus is now $444 million, up $178 million since the first quarter report. He says it's still a modest surplus prediction but indicates continued movement in the right direction.

"While this quarterly update demonstrates there have been some positive short-term gains, we're committed to continuing to exercise fiscal discipline," says de Jong.

Revenue for the fiscal year is projected at $45.5 billion, nearly $200 million higher than previous forecasts. Revenue increased from tax, federal transfer payments and Crown Corporations, but income was lower than expected from natural resource revenues. The gains in revenue are not expected to carry forward to future years.

Since the first quarter report, both revenue and spending figures have been amended.

• Total government spending is forecast to be $16 million higher
• Ministry spending is estimated to be $29 million less
• Taxpayer-supported debt is forecast to be $300 million less

The government says spending increases were driven in part by health authorities, which spent more to meet the demand for services. Decreased ministry spending is attributed to lower debt servicing costs.

BC's real GDP is forecast to grow by 1.9% in 2014 and 2.3% in 2015, unchanged from the first quarterly Report.