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March 06, 2025BRITISH COLUMBIA BUDGET 2025-26 The Province of British Columbia tabled its provincial budget for 2025-26 on March 4, 2025.
British Columbia's Budget for 2025-26 estimates a deficit of $10.912 billion, growing from a $9.135 billion deficit now forecasted for 2024-25. For 2025-26, British Columbia's provincial revenues are projected to rise by 1.4% while expenditures grow by 3.2%.
For 2026-27 and 2027-28, British Columbia's provincial revenues are expected to outpace rising expenditures, but only reduce the deficit by just over $1 billion in this period.
Measured as a share of GDP, the footprint of provincial government in the British Columbia economy amounts to 21.3% of GDP in 2025-26 . This is projected to contract to 20.3% of GDP by 2027-28. British Columbia's 2025-26 deficit amounts to 2.5% of provincial GDP estimated for 2025. In subsequent years, the deficit is projected to contract to 2.2% of GDP in 2026-27 and to 2.0% in 2027-28.
British Columbia's net debt (taxpayer-supported) to GDP ratio is projected to rise to 26.7% in 2025-26. British Columbia's taxpayer supported debt is projected to rise further to 30.9% of GDP in 2026-27 and to 34.4% of GDP in 2027-28.
British Columbia's 2025-26 Budget expenditures amount to $16,620 per capita, funded by revenues of $14,709 per capita and a deficit of $1,911 per capita. Expenditures per capita are projected to rise slightly in the next two fiscal years while per capita revenues rise and per capita deficits narrow.
British Columbia's revenues and expenditures exceeded the 2024-25 Budget estimates. Fiscal plan expenditures are projected to increase at a faster pace than previously planned while revenues return to the path outlined in the 2024-25 British Columbia Budget.
With faster growth in expenditures and little change in the outlook for revenues, British Columbia's Budget deficits are now larger than anticipated in last year's fiscal plan.
British Columbia's economic growth is projected to accelerate, with a real GDP rise of 1.8% in 2025 and 1.9% in 2026. This follows an estimated 1.2% rise in 2024. Although the British Columbia Budget economic outlook does not incorporate any impacts of US tariffs and Canadian retaliations on the provincial economy, the economic outlooks of major trading partners have been lowered as a result of trade measures. Resilient housing construction is expected to offset the effects of slowing immigration and trade uncertainty. In the medium term, British Columbia's economy is expected to accelerate again due to liquified natural gas production and exports.
Key Measures and Initiatives
British Columbia's 2025-26 Budget emphasizes several priorities: a response to tariffs, health and services, stronger economy for everyone, tax measures to support growth, costs for families, neighbourhood and community safety. Key measures include:
Response to tariffs
- Expediting projects to support industry and workers
- Diversifying trade markets to reduce US reliance
- Counter-actions to reach US decision-makers
Strengthening health and protecting services (3 year allocations)
- $4.2 billion for health, mental health and addictions care capacity
- $370 million for K-12 education
- $993 million for children and family services
- $2.0 billion for income and disability supports
- $45 million for First Nations language and culture
A stronger economy for everyone (3 year allocations)
- $30 million for integrated marketplace initiative in technology industries
- $95 million for highway and bridge maintenance
- $47 million for community transportation networks and BC Transit
Tax measures to support jobs an growth (3 year allocations)
- Enhancing film and digital media tax credits and making the digical media tax credit permanent
- Increasing the Small Business Venture Capital Tax Credit
- Extending the Training Tax Credit for Apprentices
- Extending the New Mine Allowance
Reducing costs for families (3 year allocations)
- $410 million (attributed to 2024-25) for insurance corporation rebates to be payed in April 2025
- $318 million for building middle-income homes
- $375 million for rental supplements (with expanded eligibility criteria)
- Increasing speculation and vacancy tax rates to direct housing stock to residents rather than investors
Safer neighbourhoods and communities (3 year allocations)
- $90 million to provide supports and resolutions for those living outdoors in unsafe conditions
- $67 million for community safety to address repeat offenders and expand police academy training seats
- $168 million for public safety and justice programs
British Columbia Budget 2025-26
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