CPABC: B.C.’s 2025 Budget focuses on core public services to support British Columbians through a period of economic uncertainty

/EIN News/ -- VANCOUVER, British Columbia, March 04, 2025 (GLOBE NEWSWIRE) -- The B.C. Government released their 2025/26 budget today, shortly after the United States officially launched a trade war against Canada by imposing sweeping tariffs on Canadian goods. The 2025 budget focuses on maintaining core public services while highlighting new government objectives aimed at building a more resilient economy.

"These tariffs represent a significant threat to our economy," said Lori Mathison, FCPA, FCGA, LLB, president and CEO of CPABC. "CPABC acknowledges the government’s commitment to policies that encourage economic growth and a more diverse economy, and policies that make doing business in B.C. easier.”

The budget highlights several initiatives focused on strengthening B.C.’s economic foundation, such as diversifying trading relationships and streamlining the permitting process for large natural resource and energy projects. Prior to the budget release, the province had already committed to fast-tracking 18 major projects worth an estimated $20 billion.

"We see a renewed determination to expand interprovincial trade and speed up major project approvals," continued Mathison. “Policies that help reduce unnecessary hurdles are necessary to help de-risk some of these projects and encourage further strategic projects.”

The 2025/26 budget includes a $15.4 billion taxpayer-supported capital spending plan, up from $11.3 billion in 2024/25. The government plans to further increase investment in healthcare and transportation infrastructure, while remaining committed to increasing the housing supply by allocating an additional $318 million to the BC Builds program over the next three years. As a result, taxpayer-supported capital spending—which does not include BC Hydro or other crown corporation projects—is expected to reach a cumulative $45.9 billion over the next three years.

"Domestically, there are still a lot of challenges facing British Columbians that the government plans to help address,” continued Mathison. “Affordable housing, access to healthcare, and transportation infrastructure are areas where we need to keep making improvements, and this significant capital injection aims to do that.”

In total, the provincial deficit is estimated to rise to a record $10.9 billion in 2025/26, representing 2.5 per cent of GDP. As a result, B.C.’s taxpayer-supported debt-to-GDP ratio is expected to increase to 26.7 per cent, up from 22.9 per cent based on the latest estimate for 2024/25. Given the uncertainty surrounding the economy and trade-related disruptions, the government has built in a $4.0 billion contingency for each of the next three years.

“When a crisis arises that warrants a significant government response, such as a major shift in North American trade norms, the government’s fiscal position has an impact on how robust that response can be,” concluded Mathison. “In the future, CPABC will continue to encourage the B.C. government to adopt a long-term fiscal anchor and avoid structural deficits to ensure the province remains well-equipped to handle current and future challenges.”

**About CPA British Columbia:**

The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for over 40,000 CPA members and 6,000 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy.

For more information, contact:
                    
                    Jack Blackwell, Economist
                    news@bccpa.ca
                    604.259.1143