An Overview of BC’s Provincial Budget

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British Columbia’s provincial budget for the next few years includes rising deficits and a small increase in provincial revenue. However, many are still unaware of what areas the funding is being delegated to and how that could alter the province’s future. 

With the recent federal election and the looming US tariffs on everyone’s minds, Coastal Front is here to provide a fresh overview of the BC government's financial promises and what others have to say about them. 

In lieu of the provincial government's announcement of a $10.9 billion deficit expected for the 2025 fiscal year, there has been spirited discussion over the topic in BC. 

Optimistic supporters will claim that we can weather the deficit until it starts to go down, as predicted in the provincial government’s estimations. They point to addressing pressing issues like healthcare, housing, and affordability as justifiable costs in this recent budget release. 

However, detractors of BC’s government cite concerns about fiscal sustainability and the allocation of resources in the long term for the province. 

The Budget’s Purpose

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For the 2025-2026 period, the BC government estimates that it will generate $84 billion in revenue, with an expected $94.9 billion in expenses that would put the province into a deficit. This trend is expected to continue into the following period of 2026-27, with a revenue of $85.7 billion minus $95.9 billion in expenses, with the overall deficit expected to be $700,000 lower, at $10.2 billion. 

According to the provincial government, the 2025 BC Budget was assembled in response to the perceived impacts of the recent US tariffs levied on Canada. A three-point plan was highlighted, which focuses on strengthening BC’s local economy, diversifying trading partners, and facing the tariffs with “tough counteractions and outreach to American decision-makers.” 

Other highlights include a focus on healthcare services, specifically with $500 million being promised for mental health programs like addiction treatment, as our province is in the ninth year of a toxic drug health emergency declared in 2016. 

Also prioritized funding areas are: disability assistance, indigenous language and culture preservation, and a focus on education funding, including post-secondary options. 

"Our government is focused on building an economy that creates the wealth needed to deliver more jobs with bigger paycheques and protect our public services in the face of the threat of unjustified tariffs," said Minister of Finance Brenda Bailey.

Critical Voices

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The 2025 BC provincial budget and all that it entails have become a vocal conversation point for many different groups. As the provincial government’s responsibilities affect everyday aspects of life, there are differing and diverse viewpoints on how the budget should be managed.

According to an article by think-tank Generation Squeeze, there is significant ageism in our budgeting plans as the government is planning to “deliver 65 percent more new provincial investment to seniors than to residents under age 45” by the end of 2027. 

Generation Squeeze also points out that the least amount of funding is delegated towards housing, despite nationwide discussion about a housing crisis, which was a prominent topic in the recent federal election.

Recently, two large American credit agencies, Moody’s and Standard & Poor’s (S&P), downgraded BC’s credit rating, saying that the reason is the province’s rising deficit and the lack of contingency to resolve it. Moody’s even predicted that the deficit would increase to $14.3 billion in the 2025-26 period, which conflicts with the BC government’s estimated $10.9 billion. 

Peter Milobar, Conservative Party of BC MLA and Official Opposition Finance Critic, noted that there was no plan and no economic forecasting showing the benefit of removing inter-provincial trade barriers in the budget, which he believes is the best solution to the recent American tariffs. 

The provincial Green Party is critical of the budget from a different perspective. Rob Botterell, Green MLA for Saanich North and the Islands, stated, "In this moment of deep uncertainty, we need government investment in systemic solutions, not another ICBC rebate cheque.” He points out how only $238 million is allocated to fire management, when wildfires cost BC over $1 billion in 2023/24.

Economist Weighs In

Marc Lee, an economist from the Canadian Centre for Policy Alternatives, told Coastal Front that we have the capacity to run deficits and support the taxpayer debt for now, while “keeping an eye on the US for the next 12-18 months.” Lee believes that the most concerning possible issue would be if interest rates double over the next few years. 

Lee further explained that in the face of an oncoming recession, governments should be running deficits to “pump money into the economy,” because consumer spending and overall job employment are at a lower rate. 

For future areas of investment, Lee recommends that healthcare should be increased and adjusted to fit BC’s growing senior population, as well as childcare, so that labour markets can see more gender equality. He explains that future budgeting would necessitate higher property taxes and hiking rates on higher-income individuals. 

There are many different and multidimensional criticisms of the 2025 BC provincial budget. It is a good reminder that government spending is a bipartisan issue, with a diverse range of criticisms and ideas constantly being introduced when discussing the topic. The NDP provincial government will have to prove its mastery over the local economy to oppose the critical voices of its governance.