Finance Minister Brenda Bailey’s latest budget marks a hard pivot from years of expansion to a new phase of fiscal restraint and “expenditure management.”
Thank you for reading this post, don't forget to subscribe!1. The Fiscal Gap
The province is leaning heavily into deficit spending while trying to slow the burn.
- Deficit: Hitting $13.3 billion this year, with a slow crawl down to $11.4 billion by 2029.
- Total Debt: On track to reach $235 billion within two years.
- Debt-to-GDP: Rising to 30.6%, signaling a much heavier debt load for the province than in previous decades.
2. Your Wallet (Tax Hikes)
For the first time in nearly 20 years, universal income tax rates are moving up.
- Income Tax: The bottom bracket rises from 5.06% to 5.6%.
- The Cost: Roughly 60% of British Columbians will pay more, averaging an extra $76/year.
- PST Expansion: Now applies to professional services (legal/accounting) and basic cable/landline bills.
- Luxury & Vacancy: Speculation tax is up to 4%, and high-value properties ($3M+) will see higher school taxes.
3. Leaner Government
The era of “hiring up” has ended in Victoria.
- Job Cuts: 15,000 public sector positions will be eliminated over three years (mostly through attrition).
- Delayed Infrastructure: To save $1.7 billion, several major projects—including seven long-term care homes and the Burnaby Hospital expansion—have been pushed back.
4. Where the Money Is Going
Despite the “re-pacing,” the government is still injecting cash into core services:
- Health & Schools: Over $3.4 billion combined for healthcare caseloads and K-12 classroom support.
- Economy: A 15% tax credit for manufacturers and $283 million for skilled trades training.
