US EditionB.C. Debt and Deficit Balloon with Carbon Tax Gone and Growth Slides
The elimination of the carbon tax reduces government revenues by $2.8 billion, contributing to the record $11.6 billion deficit amid economic slowdown and global trade uncertainties.
- British Columbia's provincial government released a fiscal update on September 15, 2025, showing the deficit will reach a record $11.6 billion this fiscal year.
- The rise in the deficit stems mainly from the NDP government's elimination of the carbon tax effective April 1, which reduced revenues by $2.8 billion.
- The fiscal update also attributes the worsening outlook to global trade uncertainty and U.S. tariffs, as well as a housing market slowdown, partially offset by tobacco settlement cash.
- Finance Minister Bailey said the debt-to-GDP ratio is 24.5% for 2025-26, lower than Ontario and Quebec's 40%, but projected debt will spike nearly $60 billion over two years.
- The deficit increase signals continuing fiscal challenges, prompting government plans to raise revenue through economic development and spending reviews while protecting services.
13 Articles
13 Articles
Bowen Island Undercurrent
B.C. debt and deficit balloon with carbon tax gone and growth slides
BC faces record-high deficit after the elimination of carbon tax revenue
Finance Minister Brenda Bailey is also projecting higher deficits than she previously forecasted through to 2028 as growth slides, while the province's debt is predicted to spike by almost $60 billion over the next two fiscal years.
Prince George Citizen
Loss of carbon tax boosts B.C. deficit as economic growth set to slide
VICTORIA — British Columbia's forecasted deficit has hit a record high of almost $11.6 billion for the first quarter of the 2025-2026 fiscal year, largely due to the elimination of the carbon tax and amid "global trade uncertainty.
B.C. projects record $11.6B deficit amid trade woes, carbon tax repeal
British Columbia’s latest fiscal update is painting a bleak picture for the province’s bottom line, projecting a record-setting $11.6 billion deficit for the 2025-26 fiscal year — a figure that’s $665 million higher than anticipated in Budget 2025. The numbers come amid persistent global trade uncertainty, declining revenues, and the province’s recent decision to eliminate the carbon tax on fuels — a move the government says was aimed at helping…
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