Politics · Canada · 1 hr ago
B.C. Faces Record Deficit as Election Nears
British Columbia’s deficit is projected to hit $13.8-billion this fiscal year, the largest budget shortfall in the province since at least 1991.
The outlook is a central challenge for the next government, whoever wins the Oct.
24 provincial election.
Under Premier David Eby’s NDP, the province has moved from a small surplus to a deep and prolonged deficit outlook over four years.
The NDP’s plan projects the deficit will fall to $11.97-billion by 2028-29, while the Conservatives forecast $10.8-billion by 2029-30.
Neither party’s plan returns the budget to balance in the period covered.
Meanwhile, taxpayer-supported debt is projected to more than triple to $187-billion in 2028-29 compared with 2022-23, adding pressure to the province’s finances.
The next government will have to tackle the deficit and rising debt, while slower immigration and U.S. tariffs add to economic concerns.
British Columbia’s deficit is projected to reach $13.8-billion this fiscal year, the largest shortfall since at least 1991.
The province’s fiscal outlook has worsened during the four years Premier David Eby’s New Democratic Party has governed.
The NDP and the Conservative Party of B.C. have both released costed platforms, but neither sets out a clear path to fiscal stability in the near or medium term.
The NDP projects the deficit will fall to $11.97-billion in fiscal 2028-29, while the Conservatives project it will reach $10.8-billion by 2029-30.
B.C.’s taxpayer-supported debt is projected to more than triple to $187-billion in 2028-29 compared with 2022-23.
- Who
- British Columbia’s government and the main parties contesting the election: the NDP, led by Premier David Eby, and the Conservative Party of B.C., led by Lorne Doerkson.
- What
- The province faces a projected record deficit, rising debt and worsening fiscal outlook. Neither main party’s platform offers a clear path back to fiscal stability in the near or medium term.
- When
- The latest fiscal update was released in September. The election is scheduled for Oct. 24.
- Where
- British Columbia, Canada.
- Why
- Four years of growing deficits have worsened the province’s fiscal position. Slower immigration and the effects of U.S. tariffs are adding economic headwinds.
New Democratic Party
Conservative Party of B.C.
Deficit target
New Democratic Party
The NDP projects the deficit will fall to $11.97-billion in fiscal 2028-29, relying in part on a tax increase for high-income earners and new revenue tied to major projects.
Conservative Party of B.C.
The Conservatives say the deficit will fall to $10.8-billion by 2029-30, relying on a hiring freeze, spending reviews and other measures.
Revenue and taxes
New Democratic Party
The NDP plan includes up to $730-million a year in new revenue from targeted economic growth tied to major projects.
Conservative Party of B.C.
The Conservatives plan for $2.6-billion of extra revenue from faster growth over three years, while proposing tax cuts of about $3.4-billion a year.
David Eby took office as the province’s taxpayer-supported debt began its comparison period.
The latest quarterly fiscal update projected a $13.8-billion deficit for the fiscal year.
The Globe and Mail published its report on the province’s worsening fiscal outlook.
British Columbia’s election is scheduled to take place.
- Projected deficit this fiscal year
- $13.8-billion, or 2.9 per cent of GDP
- NDP deficit projection
- $11.97-billion in fiscal 2028-29
- Conservative deficit projection
- $10.8-billion by 2029-30
- Taxpayer-supported debt
- Projected to reach $187-billion in 2028-29
- Net debt relative to GDP
- Projected at 27.4 per cent this fiscal year, up from 17.2 per cent three years earlier
What people are saying
Bond markets will have little tolerance for high deficit spending in a province with weak private demand growth.
likely points to continued slow growth in the province and, regardless of the election outcome, a weaker fiscal impulse – or reduced government contribution to growth