- Marc Desormeaux, Principal Economist • Kari Norman, Economist
British Columbia: Budget 2024 - Spending Increased Again, but Fiscal Advantages Largely Intact
British Columbia’s (BC) fiscal year 2024–25 (FY2025) budget increased spending and deficit projections again, with shortfalls expected through FY2027.
Still, BC’s fiscal advantages remain largely intact. Its net debt burden and debt service-to-revenue ratios, although rising, are expected to be among the smallest of the provinces while its fiscal buffers remain significant.
Spending increases were concentrated in the healthcare sector. The province will also offer incremental new affordability relief via targeted transfers to lower- and middle-income households, tax reductions for small businesses, and expanded property transfer tax exemptions for first-time homeowners.
Gross borrowing requirements are now expected to total $24.2B in FY2025, $29.5B in FY2026, and $28.4B in FY2027, reflecting increases to capital spending plans following project delays and larger deficits. Relative to the last outer-year borrowing projections, FY2025 and FY2026 figures represent boosts of $2.7B and $8B, respectively.