Finance
B.C.’s First Quarterly Report shows the Province supported growing communities while responding to a major wildfire season, high interest rates across the country and global economic challenges.
“In a challenging global economy, we’re building B.C. for a better tomorrow,” said Katrine Conroy, Minister of Finance. “Hiring new doctors, building new schools and hospitals, boosting wildfire response and training people for good jobs – these are the things that will keep B.C. growing and strong today, and for our kids and grandkids.”
The updated three-year forecast shows this year’s deficit will be $8.979 billion, which is $1.1 billion higher than forecast earlier this year, followed by $6.7 billion next year ($1.1-billion improvement) and $6.1 billion in 2026-27 ($193-million improvement).
In addition to lower corporate income tax revenue due to federal forecast changes, the biggest impact to this year’s fiscal plan is about working to keep people safe from wildfires. Fighting wildfires is forecast to cost $886 million this year, which is $653 million higher than forecast in the budget.
“I’ve seen the impacts of wildfires where I live in the Kootenays and am incredibly grateful for the firefighters who worked day and night to keep us safe,” Conroy said. “From moving the wildfire service to a year-round operation to implementing the recommendations of the Premier’s Expert Task Force, we are taking strong action to keep people safe now and in future years.”
B.C. continues to have one of the lowest debt-to-GDP ratios compared to other Canadian provinces and remains the only province with a triple-A rating from a credit rating agency.
Looking ahead to 2025-26 and 2026-27, the First Quarterly Report shows a brighter outlook and stronger revenue forecast compared to this year. The easing of interest rates expected next year will bolster economic growth in B.C., and natural resource and tax revenues are expected to increase.
“During hard times and slower economic growth around the world, some are saying they would make deep cuts and increase fees. That is the wrong approach,” Conroy said. “We are building a stronger economy and working to bring that strength to everyone by supporting people, building the communities our growing population needs, attracting investment and training so people can access good-paying jobs.”
B.C. will invest a projected $18 billion on infrastructure in the fiscal year. The quarterly update highlights 37 major projects approved for construction, including cancer centres, schools, student housing and highway upgrades.
B.C. is able to respond to unanticipated changes or expenses with $3.9 billion in contingencies this year.
Learn More:
To access the First Quarterly Report, visit: https://www2.gov.bc.ca/gov/content/governments/finances/reports/quarterly-reports
To access the PowerPoint presentation, visit: https://news.gov.bc.ca/files/FirstQuarterlyReport.pdf
A backgrounder follows.
