The B.C. government’s latest fiscal plan has managed a rare feat: drawing fire from almost every corner of the province. Finance Minister Brenda Bailey’s budget attempts to rein in spending while simultaneously raising taxes, resulting in a plan that many see as “all pain and no gain.”
Thank you for reading this post, don't forget to subscribe!1. Tax Hikes & Growing Debt
For the first time in over a quarter-century, British Columbians are seeing a base income tax hike.
- Tax Increase: The base rate jumps to 5.6%, alongside a pause on tax bracket indexing (meaning “bracket creep” will effectively lower take-home pay as inflation rises).
- The Deficit: Despite the tax increases, the province is staring down a record $13.3 billion deficit, with total debt projected to hit $235 billion by 2029.
2. Public Sector “Trim”
In a move that has rattled labor unions, the province is looking to shrink its footprint.
- 15,000 Jobs: The government plans to reduce the public sector workforce by this amount over three years, primarily through attrition (not filling roles when people leave).
- Service Impact: Critics argue this “hiring freeze” will lead to longer wait times for provincial services that are already stretched thin.
3. Infrastructure on Ice
To slow the bleeding, the government is “resequencing”—essentially delaying—major construction projects.
- Healthcare Hits: Delays to the Burnaby Hospital expansion and several long-term care homes have sparked outrage from healthcare advocates.
- Education Stalls: Planned student housing at UVic and various $10-a-day childcare expansions are now on hold.
The Bottom Line
| The Government’s View | The Critics’ View |
| A “prudent and disciplined” response to a global economic slowdown and U.S. trade tariffs. | A “tax-and-spend” budget that cuts essential services while still driving the province deeper into debt. |
