VICTORIA - Here are some highlights of British Columbia鈥檚 budget, delivered by Finance Minister Brenda Bailey on the same day that U.S. tariffs on imports from Canada were enacted, setting off a North American trade war.
A RECORD DEFICIT, AGAIN
The budget forecasts the province鈥檚 first $10-billion deficit, with the gap between revenue and expenditure predicted to hit $10.9 billion in 2025/26.聽
Last year鈥檚 budget initially forecast a 2024/25 deficit of $7.9 billion 鈥 a record at the time 鈥 before a series of revisions saw it adjusted to $9.1 billion. The government predicts the deficit will fall to about $9.9 billion in 2027/28.聽
CONTINGENCY PLANS
The budget includes an annual contingencies fund of $4 billion for each of the next three years.聽
It sets aside the funding for 鈥渦ncertain or unforeseen matters,鈥 that include collective bargaining costs, future initiatives and responses to the trade war with the United States.
NO SPLASHES BUT NO SLASHES
Bailey says the budget doesn鈥檛 have 鈥渟plashy new announcements.鈥
But the budget isn鈥檛 broadly slashing spending in response to the trade war with the U.S. 鈥 in fact, spending is slated to slightly increase over the three-year fiscal plan.聽
Consolidated operating expenses total $94.9 billion in 2025/26, rising to $98 billion by 2027/28. Capital spending in 2025/26 meanwhile rises from a forecast of about $19 billion in last year鈥檚 budget to a forecast of $20.2 billion in the new budget.
ANOTHER ICBC REBATE
Eligible drivers, both commercial and private, will get a $110 ICBC rebate, with payments expected in April.聽
It鈥檚 the fourth rebate since the 2021 revamp of the province鈥檚 auto insurer, and the budget papers say it鈥檚 possible due to 鈥渂etter-than-expected investment returns and prudent financial management.鈥澛
Basic insurance rates will be maintained until March 31, 2026.
This report by 春色直播was first published March 4, 2025
