B.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.
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.
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.
“While we are facing economic headwinds, many of our projects from earlier this year remain accurate,” Bailey said.
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.
More to come.