B.C. 2026 Budget Delays Projects, Raises Taxes

British Columbia's provincial government unveiled its 2026 budget on Tuesday, announcing delays to multiple infrastructure projects in health care and education while introducing tax increases and public sector reductions to manage a growing deficit amid economic challenges.

Finance Minister Brenda Bailey presented the budget in the legislative assembly in Victoria, highlighting fiscal pressures from declining resource revenues and external factors such as U.S. tariffs. The plan projects a deficit of $9.6 billion for the 2025-26 fiscal year, down from a previous estimate of $11.2 billion due to stronger-than-expected income and corporate tax collections. However, the deficit is forecast to climb to $13.3 billion in 2026-27 before modest reductions in subsequent years, pushing provincial debt from $154 billion currently to $234.5 billion by 2028-29. Debt servicing costs are expected to consume 8.2 cents of every revenue dollar by the end of the period, up from 4.9 cents.

To address these strains, the government is rephasing construction projects to avoid overlapping demands for materials like steel and to incorporate lessons from ongoing builds, according to a budget briefing...