BURSTB.C.’s 2025-26 deficit is projected at $11.2 billion, according to the latest quarterly report from Finance Minister Brenda Bailey.
Bailey, speaking in Victoria Thursday (Nov. 27), released her ministry’s second quarterly report, which highlighted a projected economic growth of 1.4 per cent in 2025 and 1.3 per cent in 2026, along with the projected $11.2-billion deficit.
The first quarterly report was released in September, which was her first report since the budget was released in March.
“While we are facing economic headwinds, many of our projections from earlier this year remain accurate,” Bailey said.
However, Bailey said the new projected deficit is $390-million smaller since the first quarterly report. She said it’s largely due to increased revenues from personal and corporate income tax. She said revenue is forecast to increase by $512 million.
Bailey added the expense forecast includes an expenditure management target of $300 million created by reducing government administrative costs, travel and general office expenses, as well as by implementing hiring restrictions and “staffing efficiencies.”
She said the government started working on inefficiences about a year ago.
“The initial areas where we’ve been able to find efficiencies are really in regards to things like travel, ensuring that we’re travelling less,” Bailey said.
“We’re using online meetings more, for example. We’re also been able to reduce the use of contractors. We’ve been able to find some efficiencies in terms of letting go of some leases of land, for example, and a number of other categories that this work is continuing.”
Meanwhile, expenses are forecast to be $122 million higher than in the first quarterly report. Bailey said that’d due to higher spending for refundable tax credits and higher net spending by service-delivery agencies, but it’s partially offset by lower costs from wildfires.
Bailey said it’s true that the “ongoing, unjust and unpredictable” trade policies coming from the U.S. have had an impact on businesses.
But she added it’s “also true that B.C. has the natural resources, the geographical advantage and the skilled workforce that we need to thrive.”
The finance minister specifically pointed to four of federal government’s 11 nation-building projects being located in B.C.: the North Coast Transmission Line in northern B.C.; Ksi Lisims LNG in northwest B.C.; the Red Chris Mine expansion, also in northwest B.C.; and LNG Canada Phase 2 in Kitimat.