Summary

• B.C.’s real gross domestic product (GDP) grew by 2% in 2025, above the 1.8% forecast in Budget 2025
• Increased revenue and reduced spending resulted in a $7.7-billion deficit, lower than forecast
• B.C. launched Look West Action plan, expediting major project approvals

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The Province navigated heightened global economic volatility in 2025-26 by defending workers and the economy and protecting the public services on which people in B.C. rely.

“We released Budget 2025 during a time of incredible uncertainty, on the first day that the U.S. imposed sweeping tariffs on many Canadian goods,” said Brenda Bailey, Minister of Finance. “We responded by protecting investments in front-line services and programs that save people money, and by expediting the major projects we need to create jobs and economic growth.”

Government exceeded Budget 2025 savings targets

As part of the Province’s efforts to reduce spending, government introduced expenditure-management targets in Budget 2025. The Province exceeded the goal of $300 million for the 2025-26 fiscal year with $467 million in savings through reduced discretionary spending, including travel, office and business expenses, conferences and events, as well as staffing adjustments, voluntary retirements and hiring restrictions.

Recruiting and training more doctors, health-care workers

Applications opened in 2025 for the first new medical school in Western Canada in nearly 60 years. New doctors will be trained at the SFU Stephens Family School of Medicine, with the first class expected to graduate in 2029.

The new medical school continues the Province’s work in expanding access to health care in B.C.

In 2025, more than 223,000 people were connected with a family doctor or nurse practitioner, and more than 580 health-care professionals were recruited from the U.S. through targeted campaigns.

Deficit lower than forecast

Public Accounts for fiscal year 2025-26 show that B.C.’s deficit was $7.7 billion, $3.2 billion lower than the forecast in Budget 2025. Revenues were higher than projected in Budget 2025 largely due to a $2.6-billion tobacco settlement and higher net income at ICBC. Overall spending was $344 million lower than projected.

B.C.’s debt-to-GDP ratio continues to be the second lowest in Canada at 26.3%.

Action plan secures B.C.’s economic future

B.C. launched Look West, a targeted plan designed to deliver major projects, strengthen B.C.’s and Canada’s economic security, and create good-paying jobs and skills-training opportunities. Through the plan, the Province identified 35 major projects, including liquefied natural gas (LNG) facilities, mines and BC Hydro clean-energy projects, with eight projects approved and under construction.

The Province celebrated its first shipments of LNG from LNG Canada in Kitimat to Asia, a milestone in diversifying trade relationships in a changing global economic environment.

In 2025-26, government continued to fund more affordable housing and invested more than $11 billion on transportation, education and health-care infrastructure throughout the province.

“We have ambitious goals for B.C.’s future,” Bailey said. “We’re developing major resource projects responsibly and building the hospitals, roads and schools British Columbians need. Whether its fighting wildfires or supporting families and businesses in the face of the continued fracturing of global trade, we are committed to ensuring we have the financial power to respond to changing threats and become an even stronger, more resilient B.C.”

Learn More:

• To access Public Accounts, visit: https://www2.gov.bc.ca/gov/content/governments/finances/public-accounts

A backgrounder follows.