Finance Minister Carole Taylor says the B.C. economy is strong and the budget surplus is growing, but warns regional health officials not to expect billions of dollars in spending increases.

Taylor released her latest quarterly report in Victoria on Thursday, showing government revenues are higher than projected.

The surplus is now pegged at $2.15 billion for the current fiscal year, an increase of nearly a billion since her last quarterly report in September when it was forecast at $1.2 billion.

Taylor says the improvement is the result of higher tax revenues and a one-time infusion of federal dollars for building projects.

Health spending could 'eat up surplus'

But Taylor also warned that she's already facing demands from regional health authorities that exceed budget projections for the next three years by as much as $4 billion.

"This is exactly why I am trying to raise red flags. What we have seen from the health authorities is that they are saying that their pressures would eat up every single penny of our surplus for the next three years going forward."

Taylor issued a similar warning when she released her last quarterly report in September, and admits many people were sceptical.

The NDP said the minister was just trying to prepare the public for cutbacks and user fees in health care. But Taylor says B.C. is facing serious choices about the future of health care.