BC government debt jumps $10.6B above budget, watchdog warns
(Image courtesy of CBC)
British Columbia’s public accounts show the province’s debt grew by $10.6 billion more than budgeted last fiscal year, prompting criticism from a taxpayer advocacy group.
The Canadian Taxpayers Federation says Premier David Eby’s government had forecast a $15.8-billion increase in the 2024-25 budget, but the final tally hit $26.4 billion. That amounts to a 67 percent overshoot.
(Image courtesy of the 2024-2025 BC Public Accounts)
“It’s hard to imagine how you accidentally borrow an extra $10.6 billion,” said Carson Binda, the federation’s BC director. “That’s not pocket change — it’s about the same as the province collects in the PST each year.”
The larger-than-expected borrowing increased total provincial debt to $133.9 billion, which amounts to approximately $23,500 for each British Columbian.
Debt servicing costs also exceeded expectations. The province paid $4.6 billion in interest during the fiscal year — $336 million more than budgeted — or about $807 per person.
Binda said the growing interest bill means less money is available for other priorities. “If debt interest were its own ministry, it would have the fourth-largest budget in the province,” he said.
The watchdog is calling on the government to rein in spending and avoid piling on more debt. “Every dollar borrowed today is a dollar plus interest taxpayers will have to repay tomorrow,” Binda said.
The BC government has not yet responded publicly to the federation’s criticisms or explained the factors behind the debt increase.
