Provincial deficit called 'unsustainable' as B.C. budget arrives Tuesday

Officials say British Columbia faces an "unsustainable" provincial deficit forecast at $11.2 billion, and the government will table a budget Tuesday that officials say aims to reduce spending while protecting core front-line services.

The provincial government will table its budget on Tuesday amid warnings about the size of the deficit. Senior officials have described the current fiscal position as unsustainable and have signalled a need to tighten spending. The legislative session opened days after a recent mass shooting, and the throne speech focused on community recovery rather than policy previews. The finance minister has publicly prepared audiences for a difficult budget announcement. Key details: - Current forecasts in the article put the provincial deficit at $11.2 billion, and a deputy minister described the province's budget deficit as "unsustainable." - Premier David Eby and Finance Minister Brenda Bailey have said the budget will reduce expenditures and aim to shrink administrative layers while protecting core front-line services. - The Finance Ministry reports the provincial public service has declined by more than 1,500 people since 2024, largely through attrition, with departures since January 2025 split among resignations, retirements and term completions. - Economist Marc Lee cited in the story noted B.C.'s net debt-to-GDP ratio at about 3.8 per cent and pointed to a $4-billion contingency fund in the budget outlook. - The opposition's finance critic, Peter Milobar, criticized the government's fiscal record and cited projections in the article that provincial debt could top $155 billion this fiscal year. Summary: Officials present the upcoming budget as a response to what they describe as an unsustainable deficit and say it will include spending restraints while safeguarding core services. Opposition figures contest the government's financial management, and some economists question how seriously the debt burden should be seen. The budget will be tabled Tuesday; further specifics are undetermined at this time.