Congrats BC, the highest deficit ever!
B.C.'s provincial deficit now sitting at record $11.6B, finance minister says
Deficit set to rise to $12.6B by next year, finance minister Brenda Bailey says in 1st quarter results
$11.6 billion.
That's how much the provincial government is in the red, a record high deficit forecast for the current fiscal year, laid out by Finance Minister Brenda Bailey in the first quarter financial results Monday.
By next year, the deficit is set to rise to $12.6 billion.
"While B.C.'s diversified economy is better positioned than many to weather these headwinds, there's no doubt that tariffs are challenging our economy and there is pressure on our fiscal position," Bailey said in a statement.
It's a worse financial picture than the $10.9-billion deficit forecast in the provincial budget.
February's budget did not take into account the loss of the carbon tax, which blew a $1.8-billion hole in government revenues.
Bailey also said the government is grappling with decreases in revenue sources, such as property transfer tax, sales tax, natural resources, federal government contributions and higher-than-expected wildfire costs.
The finance ministry says it's seen an increase in corporate income tax revenues and the initial payment from B.C.'s share of the $32.5-billion lawsuit settlement against tobacco companies.
Bailey said the province is on track to cut $1.5 billion in government expenses over the next three years, with $300 million in cuts this year.
Bailey said the savings come from a reduction in administrative costs, such as general office expenses, travel and discretionary advertising. She said a government hiring freeze has decreased the size of the public service by 850 people.
