Financial Insights That Matter
VICTORIA — British Columbia’s finance minister is starting to sell her budget to the public complete with a record deficit in the early days of a trade war with the United States.
Brenda Bailey is expected to speak today at an event hosted by the Greater Victoria Chamber of Commerce, her first public appearance after tabling the budget on the same day U.S. President Donald Trump imposed 25 per cent on Canadian goods.
Her budget forecasts a record deficit of about $10.9 billion in the next fiscal year starting April 1, while promising an insurance rebate for drivers of $110, and increases to both supports for families under the Rental Assistance Program and help for elderly renters relying on the Shelter Aid for Elderly Renters program.
The budget comes with $4 billion in annual contingencies for each of the next three years to cover what Bailey called “unpredictable costs,” including the province’s response to the tariffs.
As industry and advocates get a look at the books, some are raising concerns about what was included and what was left out.
The Independent Contractors and Businesses Association calls the budget out-of-touch and says the deficit, rising debt, and trade war will have dire consequences for the economy and the construction industry.
The BC Council of Forest Industries says it is disappointed by the absence of dedicated support for the forestry sector which will be particularly hard hit by the new tariffs at a time when the industry is already facing significant challenge amid the ongoing softwood lumber dispute.
Bailey told reporters on Tuesday that the budget will focus on education and health care, while also boosting a “self-sufficient economy.”
The Business Council of B.C. says it’s concerned about “the ongoing deterioration in B.C.’s public finances” and what it considers the absence of a credible path to restore fiscal sustainability.
B.C.’s taxpayer-supported debt is projected to be $97.7 billion at the end of 2024-25, approximately $9.1 billion more than was projected in the budget from the previous year.
The deficit is expected to decrease to $9.9 billion by 2027-28.
This report by The Canadian Press was first published March 5, 2024
The Canadian Press
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