B.C. Budget to invest in healthcare, jobs despite nearly $11 billion deficit
British Columbia’s government has released Budget 2025, calling for increases in key sectors.
The province said the budget plan includes measures to protect jobs and public services, while preparing B.C.’s economy to withstand the tariffs from the United States.
The budget will also carry a $10.9 billion deficit with projections for it to lower to $10.2 in 2026/27 and $9.9 billion in 2027/28.
“With uncertainty on the horizon, it is prudent to protect the essentials and prepare for what comes next by investing in our greatest resource, the people of British Columbia,” Brenda Bailey, Minister of Finance, said.
“While our economy is built to withstand the threat of U.S. President Donald Trump’s tariffs relatively better than most other provinces, the impact would still be significant. Our budget prepares us to carefully navigate these uncharted waters so we can put people first and support businesses as we build a stronger, more self-sufficient future.”
Budget 2025 calls for $9.9-billion in new operating funding over three years to support public services. Some of the investments included in the three-year plan are:
- $4.2-billion in new health care funding to improve access to primary care, hire more health care workers, reduce wait times, open and operate new and renovated hospitals and facilities, and support addictions treatment and recovery programs
- $375-million in additional funding for rental support programs
- $370-million to support education by hiring additional teachers, special education teachers, teacher psychologists and counsellors
- $325-million to support safer communities, including $235-million in justice and public safety programs
- $95-million in critical highway and bridge maintenance investments
- $47-million to support B.C. Transit networks outside the Lower Mainland
- $30-million to support high-quality jobs through the Integrated Marketplace Initiative’s work involving accelerating innovation in the province
The budget also included $59.9-billion in capital investments over that three year period. Included in those investments are $15.5-billion to build and upgrade hospitals, long-term care facilities, and cancer centres; $4.6-billion to build and upgrade schools, and $15.9-billion to support transit, infrastructure and highway improvements. The province said these capital investment were anticipated to support 180,000 jobs over the three-year period.
“In times of uncertainty, we will be there for British Columbians. We are continuing to invest in the services people rely on to take care of their families, get the care they need, when they need it, and provide a good future for everyone across the province,” Bailey said.
“Our government is focused on building an economy that creates the wealth that is needed to deliver more jobs with bigger paycheques and protect our public services in the face of the threat of unjustified tariffs.”
The province added British Columbians could be eligible for ICBC rebates of $110 due to what it called “stronger-than-expected returns on investments.”
Budget 2025 also called for the deficit to spike initially, but then decline in the following years.
The provincial deficit for 2024-25 was projected in the budget as $9.1-billion, down $273-million than previously forecasted in the Fall 2024 Economic and Fiscal Update.
The deficit was predicted to rise to $10.9-billion in 2025-26, but then decline to $10.2-billion in 2026-267, and to $9.9-billion in 2027-28.
The province also updated its forecast on the U.S. trade war’s impact on B.C.’s economy.
The most recent projection showed B.C. seeing a cumulative $43-billion in GDP losses, as well as the loss of 45,000 jobs, by 2029.