B.C. budget shows LNG revenue gain but rising deficits concern business groups

LNG exports from Kitimat began in June 2025 and are expected to lift natural-gas royalties to about $1.3 billion in 2026–27, while business groups warned the budget includes higher taxes and a significant projected increase in debt over the three-year plan.

The provincial budget for 2026–27 records a clear revenue increase from liquefied natural gas after export flows began from the Kitimat terminal in June 2025. Finance Minister Brenda Bailey presented measures intended to support economic growth, including spending on trades training and a $400 million strategic investments account. The plan also introduces new tax measures such as applying provincial sales tax to additional professional services and projects rising deficits and debt over the three-year fiscal outlook. Ministerial line budgets are generally held lower, with the forests ministry facing a reduced budget and timber harvest levels remaining below earlier provincial targets. Key facts: - LNG exports from Kitimat began in June 2025 and are expected to raise natural-gas royalties by about 38%, to roughly $1.3 billion in 2026–27. - The provincial budget applies PST to more professional services, estimated to add about $261 million in 2026–27. - The Greater Vancouver Board of Trade criticized the budget’s fiscal path and cited an estimated $80 billion addition to debt over the next three years. - The forests ministry budget is reduced from $1.3 billion in 2025–26 to $910 million in 2026–27 and $860 million in 2027–28, and timber harvest is projected at about 29 million cubic metres during the plan. Summary: The budget counts on LNG royalty growth to boost natural-resources revenue while implementing new taxes and holding many ministry budgets lower, and business groups have publicly expressed concern about rising deficits and debt. Undetermined at this time.