Sky Rocketing Debt

The Eby government’s latest fiscal update paints an even darker picture of B.C.’s finances than previously forecast. The province’s 2025/26 deficit, already projected at a record-setting $10.9 billion in Budget 2025, is now expected to hit $11.6 billion—more than double the deficit at the height of the pandemic. The province has sky rocketing debt.

What’s driving this? Revenue is down, expenses remain high, and economic growth has cooled. The elimination of the carbon tax cost the province $2.8 billion in lost revenue, and although B.C. received a one-time $2.7 billion tobacco settlement, it wasn’t enough to offset the shortfall. Real GDP growth is now projected at 1.5%, lower than the earlier 1.8% forecast.

On the spending side, government expenses are projected at $94.8 billion, only slightly lower than Budget 2025, with higher costs for health care and natural resources. Interest paym

ents on debt are climbing too, now projected at $5.1 billion this year alone.

The bigger concern is long-term debt. Capital projects will push provincial debt to $155.4 billion in 2025/26—a 74% increase since Premier Eby took office. Looking ahead, deficits are expected to average $12.5 billion over the next two years, pushing debt to nearly $213 billion by 2027/28. By then, annual interest payments will equal about $1,300 per British Columbian, money that goes to lenders instead of services like health care or education.

Despite blaming external factors such as U.S. tariffs, the government’s record of high spending and mounting deficits began well before. So far, there is no plan to balance the books or reduce debt, leaving British Columbians to face the long-term costs of a worsening fiscal outlook.