The B.C. government's fiscal year ended with a much smaller deficit than originally forecast, Finance Minister Kevin Falcon announced Monday.
The province incurred a deficit of $309 million, Falcon said, about $1.4 billion less than expected. The minister credited improved economic conditions and a 5.3 per cent increase in retail sales for narrowing the gap.
The province also benefited from a one-time transfer of $769 million in HST transition funding from the federal government, though the Liberals say spending on programs and services increased by $903 million over the previous year.
The provincial economy grew by four per cent in 2010, topping the national average of 3.3 per cent.
The Liberal government is still projecting deficits in the 2011-2012 and 2012-2013 years, but predicts a balanced budget for 2013-2014.
The total provincial debt, meanwhile, increased by $3.2 billion to $45.2 billion.
