B.C.'s 2026 budget shows rising deficit and tax changes.

Finance Minister Brenda Bailey presented a budget projecting a record $13.3 billion deficit next fiscal year and expanding the PST to include some professional services.

Finance Minister Brenda Bailey delivered B.C.'s 2026 budget, which projects a large near-term increase in the province's deficit and outlines changes to taxes and project timelines. The plan says deficits will decline over time but forecasts a record $13.3 billion deficit next fiscal year. The budget expands the provincial sales tax to include some professional services and adjusts personal income tax rates and credits. It also says some infrastructure and long-term care projects will be paced or delayed to manage costs. Key facts: - The budget projects a $13.3 billion deficit next fiscal year, up from an updated forecast of $9.6 billion for the current year. - The PST base will be expanded to include certain professional services and some previously exempt goods and services will lose exemptions; the lowest personal income tax bracket is increased by about 0.54 percentage points with accompanying credit adjustments. - The government says it will pace infrastructure projects and delay some long-term care and hospital phases while aiming to reduce the deficit over a multi-year plan. Summary: The immediate effect in the budget is a higher deficit and continued growth in provincial debt alongside tax-base changes. Officials describe steps — including spending adjustments, pacing of projects and revenue changes — intended to lower the deficit over time; specific implementation timing is set out in the budget.