The B.C government is showing improvements in all three years of the fiscal plan in the first quarterly report.
Provincial officials said an operating surplus of $706 million is expected for 2022-23.
They are also projecting smaller-than-expected deficits in the next two years.
Deficits of $3.8 billion and $2 billion over the next two years are expected compared to $4.2 billion and $3.2 billion, respectively.
While the province said the economy is expected to grow, global inflation, rising interest rates across Canada, the war in Ukraine and pandemic uncertainty could still cause problems.
“This gives us an early snapshot of the province’s finances, just three months into the fiscal year,” said Selina Robinson, Minister of Finance in a release.
“A lot can change between now and the end of the year, and we need to keep making thoughtful decisions – especially with everything that’s going on around the world.
“But this indicates that we’re in a strong position to continue investing in the things people need to reduce costs, strengthen services and build a stronger B.C. for everyone.”
Government officials said real GDP is forecast to grow by 3.2 per cent in 2022 and 1.5 per cent in 2023.
Nominal GDP is expected to grow by 11.6 per cent in 2022 and 3.5 per cent in 2023.
Provincial officials said debt level forecasts are lower than what was laid out in Budget 2022.
The debt-to-GDP ratio at the end of the fiscal plan is now expected at 20.3 per cent, compared to 22.8 per cent.
The full first quarterly report can be found below.
MORE: Quarterly Financial Reports (B.C. government)