B.C. has recorded a lower deficit than expected in its latest fiscal update.
At a press conference on Thursday morning, Finance Minister Brenda Bailey said B.C. ended the fiscal year with a $7.3-billion deficit, $564 million lower than forecast at Budget 2024, as higher revenues outpaced increases in expenses.
“While our work to improve our fiscal position is underway, it is clear that, despite challenging economic conditions, this government is making progress on the things that matter to British Columbians,” Bailey said.
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She added that during the fiscal year 2024 to 2025, the province invested in the health-care system, created more than 1,000 new childcare spaces on school grounds, introduced a $400 tax credit for renters and more than 13,6000 homes were delivered through the Homes for People Action Plan.
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The province also spent a record $10.4 billion on roads, hospitals, schools and other infrastructure projects, such as the Mills Memorial Hospital replacement in Terrace and the Broadway subway expansion.
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The province said that higher revenues was largely due to improved investment earnings and higher commercial Crown earnings at ICBC.
B.C.’s unemployment rate averaged 5.6 per cent in 2024, which is lower than the national average.
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Taxpayer-supported debt increased by $23.7 billion and taxpayer-supported debt to GDP ratio ended the year at 23.2 per cent.
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“We’re building our province’s position as the economic engine of a stronger and more self-reliant Canada, and moving forward with major projects that put people to work, grow the economy and support strong communities,” Bailey added.
The BC Conservatives, however, said this level of debt is an example of a failing BC NDP government.
“When David Eby became premier, B.C. had a nearly $6 billion surplus. Just two years later, the NDP has wasted it all away and saddled taxpayers with $24.5 billion in operating debt and counting,” Peter Milobar, Opposition Finance Critic and Conservative MLA for Kamloops Centre said in a statement.
“This year alone, the NDP added $15.78 billion in new operating debt – and what do British Columbians have to show for it? ERs are still closing, schools are crumbling, and ferries can’t run on time.”
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Milobar added that more major costs are on the horizon, including wildfire contingencies, public sector bargaining and contract increases and rising infrastructure cost pressures.
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