The province’s AAA credit rating will continue, despite the return of a PST plus GST tax system, the Finance Minister announced Sunday.
The credit rating agency Standard & Poor’s said the provincial government has solid revenue and the flexibility necessary to meet deficit targets. It also called the provincial deficit “moderate.”
“I am very pleased Standard & Poor’s has confirmed our AAA credit rating. I believe this is a reflection of the fiscally conservative approach we have taken over the past decade,” said Finance Minister Kevin Falcon.
The agency noted several challenges facing the province in the near future such as the costs of transitioning back to a PST plus GST system, loss of revenue and the likelihood of the federal government requiring the province to pay back $1.6 billion in transitional funding.
Comments