Province’s Budget 2025 comes with projected deficit of $10.9 billion

The provincial government has released Budget 2025, which they say is a measured plan to protect jobs and the public services people rely on, while preparing the economy to withstand the impacts of US Tariffs.

“With uncertainty on the horizon, it is prudent to protect the essentials and prepare for what comes next by investing in our greatest resource, the people of British Columbia,” said Brenda Bailey, Minister of Finance.

“While our economy is built to withstand the threat of U.S. President Donald Trump’s tariffs relatively better than most other provinces, the impact would still be significant. Our budget prepares us to carefully navigate these uncharted waters so we can put people first and support businesses as we build a stronger, more self-sufficient future.”

Budget 2025 presents declining deficits from $10.9 billion in 2025-26, $10.2 billion in 2026-27, and $9.9 billion in 2027-28.

Included in the budget is $4.2 billion to respond to the growing demand for health-care services.

There is also $15.5 billion in capital funding provided over the fiscal plan to build and upgrade hospitals, long-term care facilities and cancer centres.

For schools, Budget 2025 provides $370 million over three years to support students in the K-12 system by hiring more teachers, teacher psychologists and counsellors.

It also invests $4.6 billion to over the plan to build and upgrade schools.

“In times of uncertainty, we will be there for British Columbians. We are continuing to invest in the services people rely on to take care of their families, get the care they need, when they need it, and provide a good future for everyone across the province,” Bailey said.

“Our government is focused on building an economy that creates the wealth that is needed to deliver more jobs with bigger paycheques and protect our public services in the face of the threat of unjustified tariffs.”

According to the province, the budget invests $30 million over three years to support jobs through the Integrated Marketplace Initiative’s work to accelerate innovation in BC, and boosts tax credits for the province’s film sector and home-grown interactive digital media and video game industry.

Also included is $95 million in highway and bridge maintenance over three years, with another $47 million over the fiscal plan to support BC Transit networks outside of the Lower Mainland.

The budget also commits $318 million over three years to BC Builds as part of the province’s goal of delivering thousands of rental homes for middle-income people.

The number of lower-income working families receiving help with their monthly rent payment will nearly double as part of $375 million in additional funding for rental support programs over three years.

With this funding, the average supplement families receive under the Rental Assistance Program will rise from $400 to $700 per month.

The threshold for the Shelter Aid for Elderly Renters program was also raised from $37,240 to $40,000, meaning the average supplement seniors receive will grow by 30 per cent, from $261 to $337. 

The province also plans to raise the speculation and vacancy tax rate for foreign property owners to 3 per cent of their home’s value (up from 2 per cent) and from 0.5 per cent to 1 per cent for Canadian citizens and permanent residents. 

These hikes take effect on January 1, 2026, and are expected to generate $47 million in revenue in 2027-28, which will be invested back into housing projects throughout B.C. 

The province says they’re also investing $325 million over three years to support safer communities, which includes $235 million in justice and public safety programs.

Budget 2025 provides additional funding to expand HEART and HEARTH programs to help more people living outdoors access housing, as well as better support services to help people move indoors.

The full budget can be found here.

– With some files from Storrm Lennie, My Nelson Now staff