B.C. 2026 budget described as neither large cuts nor tax increase

Finance Minister Brenda Bailey said the 2026 budget will protect core services and is not aimed at major cuts or a large tax increase; current forecasts put the provincial deficit at $11.2 billion.

Finance Minister Brenda Bailey previewed B.C.'s 2026 budget and said it will protect core services while avoiding large cuts or a major tax increase. She described the plan as crafted for "very serious times." A background briefing from the premier's office and an email from deputy minister Shannon Salter described the province's deficit as too high and, in Salter's words, "unsustainable." Current forecasts put the provincial deficit at $11.2 billion. The budget is due to be delivered Tuesday. Key points: - Bailey said the budget is neither a program of large cuts nor a large rise in taxes and is focused on protecting core services such as education and health care. - The government plans to continue investments in hospitals, schools, post-secondary education and housing while creating fiscal room for unforeseen events. - Bailey credited attrition for a reduction of about 1,000 full-time equivalent public service positions and said further measures to reduce the size of the public sector will be reflected in the budget. - A background briefing and an email from a deputy minister described the provincial deficit as too high; current forecasts list it at $11.2 billion. - The opposition Conservatives have said provincial debt has risen since 2022/23, citing figures they say show an increase from $89.4 billion to a projected amount over $155 billion this fiscal year, and Conservative finance critic Peter Milobar questioned recent spending and outcomes. Summary: The government is presenting a budget intended to protect core services while pursuing a gradual reduction of the deficit rather than immediate deep cuts or a large tax increase. Finance Minister Bailey indicated some savings from public-sector attrition and said additional measures will appear in the budget. The budget will be tabled Tuesday, when officials are expected to provide more detailed figures and plans.