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February 18, 2026BRITISH COLUMBIA BUDGET 2026-27 The Province of British Columbia released its provincial budget for 2026-27 on February 17, 2026. This is the first 2026-27 provincial budget to be tabled.
British Columbia's 2026-27 budget anticipates a deficit of $13.3 billion, widening from the $9.6 billion deficit now forecast for the 2025-26 fiscal year. Over the subsequent two fiscal years, British Columbia's deficit is projected to contract to $11.4 billion by 2028-29.
British Columbia's provincial government revenues are projected to slow to 0.5% growth in 2026-27 while expenditures are projected to rise by 4.4%. For 2027-28 and 2028-29, revenues are projected to grow by 3.6% in each year. British Columbia provincial government expenditures are projected to rise by 1.9% in 2027-28 and by 2.4% in 2028-29.
Expenses shown in British Columbia's budget plan include $5 billion in contingencies for each fiscal year from 2026-27 to 2028-29.
Measured as a share of GDP, the footprint of provincial government in British Columbia's economy amounts to 21.2% of GDP in 2026-27. This is projected to shrink slightly to 20.4% of GDP by 2028-29. British Columbia's deficit for 2026-27 amounts to 2.9% of projected 2026 nominal GDP.
British Columbia's net liabilities are expected to amount to 27.4% of GDP in 2026-27, rising to 33.2% by 2028-29.
British Columbia's 2026-27 Budget expenditures amount to $17,502 per capita, funded by revenues of $15,145 per capita and a deficit of $2,357 per capita. Expenditures per capita are projected to rise by $507 by 2027-28 while per capita revenues rise $868 and the per capita deficit declines by $361.
Compared with last year's fiscal plan, British Columbia's revenue projections for 2026-27 are little changed ($0.2 billion) while expenditures have been revised up by $2.9 billion.
With similar revenues and higher expenditures, British Columbia's deficit outlook has deteriorated compared to the 2025-26 projection.
British Columbia's economic outlook is little changed from the 2025-26 projection, though real GDP growth in 2026 is now assumed to be slightly weaker as a result of slower population, employment and consumer spending growth. British Columbia's economic outlook assumes that residential investment remains stable while energy-related investment projects offset slowing non-residential investment in other sectors. Near-term exports are expected to be softened by existing tariff measures - those in place as of January 12, 2026. British Columbia's outlook for 2027 is more positive as trade related uncertainty is expected to ease while population growth resumes at a somewhat quicker pace. Residential investment and liquefied natural gas exports are also expected to support British Columbia's economic growth in the medium term.
Key Measures and Initiatives
British Columbia's 2026-27 Budget prioritizes safeguarding services, building homes/infrastructure, community safety, skills training and advancing major projects. There are also measures to manage expenditures and update the tax system Key measures include:
Protecting core services ($5.1 billion over 3 years)
- $2.8 billion for health, mental health and addictions care capacity
- $634 million for the K-12 education sector
- $330 million to support child care
- $475 million to support program redesign for children and youth with support needs
- $478 million for children and youth in care and alternative care
- $373 million to for income and disability assistance and for supports for adults with developmental disabilities
- $52 million for improved disability assistance for couples
Economic growth ($758 million over 3 years)
- $241 million to double SkilledTradesBC funding
- $30 million to train highly qualified professionals
- $12 million to enhance employer training grant and increase apprenticeships
- $400 million for a new strategic investment fund to secure federal funding
- $40 million to support permitting and advance priority projects
- $35 million for the 2026 intake of the Clean Industry Fund
- Up to $1 billion loan guarantee program to support equity ownership for First Nations
Community safety ($139 million over 3 years)
- $73 million for improved access to justice and court operations
- $26 million for Repeat Violent Offending Intervention Initiative
- $16 million for Chronic Property Offending Intervention Initiative
- $14 million for Special Investigation and Targeted Enforcement program
- $10 million for Community Safety and Targeted Enforcement program
Expenditure management and tax measures
- Increasing the tax rate on the first income bracket from 5.06% to 5.60% while pausing tax bracket indexation from 2027 to 2030
- Increasing the BC tax reduction credit by $115
- Broadening the Provincial Sales Tax to cover professional services
- Changing terms of property tax deferment loans
- Increasing the speculation and vacancy tax rates for foreign property owners to 4%
- Introducing a temporary manufacturing and processing investment tax credit
- Reducing administrative and discretionary spending by $3.5 billion over three years
- Streamlining government operations and reducing full-time equivalent employment by 15,000 to save $2.8 billion over three years
British Columbia Budget 2026-27
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