B.C. provincial deficit called unsustainable ahead of budget

British Columbia officials say the province faces an $11.2 billion deficit and have signalled spending reductions while aiming to protect core services; the government's budget is due to be tabled Tuesday.

British Columbia officials have described the province's fiscal shortfall as unsustainable as the government prepares a budget to be tabled Tuesday. The provincial forecast shows a deficit of about $11.2 billion. Leaders say they intend to protect core front-line services while creating fiscal room for unexpected events. The legislative session began after a recent local tragedy, which shifted some attention to community recovery rather than detailed budget previews. Key points: - Provincial forecasts put the deficit at about $11.2 billion and a senior official described it as an "unsustainable provincial budget deficit." - Premier David Eby has said the government will reduce expenditures and continue to reduce the size of the public sector while protecting core front-line services. - Finance Minister Brenda Bailey has warned she may be unpopular when she tables the budget on Tuesday and has signalled tighter spending. - The Finance Ministry reports the provincial public service has declined by more than 1,500 positions since restrictions began in 2024, largely through attrition. Summary: Officials say the budget will aim to tighten spending while preserving core services, reflecting concerns about the province's large deficit. The immediate next step is the tabling of the budget on Tuesday, with more detail expected then.