British Columbia’s fiscal situation has deteriorated even further, with the projected 2024/25 deficit soaring to $9.4 billion, a $1.5 billion increase from the initial record-breaking Budget 2024 forecast.
The latest figures released by B.C. NDP Premier David Eby in his fall economic statement mark the largest deficit in the province’s history.
Provincial debt has also risen to $130 billion, exceeding previous forecasts by $1.4 billion. Taxpayer-supported debt is projected to reach $94.6 billion, with the debt-to-GDP ratio climbing to 22.3%.
Taxpayers and business groups have blasted the economic update as jeopardising the province’s fiscal future.
“Instead of taking warnings from the experts and credit rating agencies seriously, Eby keeps wasting too much money,” said the Canadian Taxpayers Federation’s B.C. director Carson Binda in a press release.
“Today’s financial report will make life harder for generations of British Columbians who will be stuck paying off Eby’s government credit card.”
The escalating debt burden translates into significant interest costs for taxpayers. British Columbians are expected to pay $4.3 billion annually in interest on the provincial debt, amounting to $757 per resident.
A $1 billion decline in corporate tax revenues contributes to the worsening fiscal picture. The looming threat of U.S. tariffs adds further pressure on small businesses, impacting confidence and investment.
It’s important to note that the current fiscal projections do not account for the potential impact of U.S. tariffs, which could further strain the province’s finances.
The Canadian Federation of Independent Business has criticized the government for a “lack of fiscal discipline” while the private sector and British Columbians were taking responsible steps to adjust to the strained economy.
“It’s important to note that the current fiscal projections do not account for the potential impact of U.S. tariffs, which could further strain the province’s finances,” said CFIB senior policy analyst Emily Boston.
“Addressing the deficit must not come in the form of increased costs to local businesses. Whether it is reducing red ink or red tape, we need this government to chart a clear path forward to lower tax rates and generate economic growth.”
BC Conservative MLA Peter Milobar echoed these concerns, warning that declining revenues and investment could hinder economic recovery and job creation.
“It’s coming on the backs of the private sector economy where we’re seeing revenues continue to slump, which means less investment coming into BC, less jobs being created which means that next year our economy will struggle,” said Milobar.
