THE provincial government on Tuesday released Budget 2025: Standing Strong for B.C., a measured plan to protect jobs and the public services people rely on, while preparing British Columbia’s economy to withstand the unpredictable impacts of unjustified tariffs.
“With uncertainty on the horizon, it is prudent to protect the essentials and prepare for what comes next by investing in our greatest resource, the people of British Columbia,” said Brenda Bailey, Minister of Finance. “While our economy is built to withstand the threat of U.S. President Donald Trump’s tariffs relatively better than most other provinces, the impact would still be significant. Our budget prepares us to carefully navigate these uncharted waters so we can put people first and support businesses as we build a stronger, more self-sufficient future.”
Budget 2025 manages B.C.’s finances and invests in critical public services to meet growing demand. It provides $9.9 billion more in operating funding over three years, including $7.7 billion in new funding for health care, education and social services. The budget also includes $4 billion in annual contingencies to address unpredictable costs, including a new collective bargaining mandate, pressures on critical services and for emerging needs, such as potential tariff response measures.
The budget provides $4.2 billion to respond to growing demand for health-care services, improve access to primary care, continue hiring health-care workers, reduce wait times at emergency departments and hospitals, and open and operate new and renovated hospitals and facilities. It also provides funding to support addictions treatment and recovery programs.
To address health-care needs throughout the province, $15.5 billion in capital funding is provided over the fiscal plan to help build and upgrade hospitals, long-term care facilities and cancer centres.
Budget 2025 provides $370 million over three years to support students in the K-12 education system, including hiring additional teachers, special-education teachers, teacher psychologists and counsellors. The budget also invests $4.6 billion over the fiscal plan in capital funding to build and upgrade schools.
Funding is increasing for services for children and youth with support needs, children and youth in care and adults with developmental disabilities.
“In times of uncertainty, we will be there for British Columbians. We are continuing to invest in the services people rely on to take care of their families, get the care they need, when they need it, and provide a good future for everyone across the province,” Bailey said. “Our government is focused on building an economy that creates the wealth that is needed to deliver more jobs with bigger paycheques and protect our public services in the face of the threat of unjustified tariffs.”
Growing a stronger and more diverse economy will help protect people from instability outside B.C.’s borders, with investments that will bring good-paying jobs to the province as part of sustainable industries.
Budget 2025 invests $30 million over three years to support high-quality jobs through the Integrated Marketplace Initiative’s work to accelerate innovation in B.C., and boosts tax credits for the province’s film sector and home-grown interactive digital media and video game industry.
It includes funding of $95 million in critical highway and bridge maintenance over three years to help people and goods move safely across the province, with another $47 million over the fiscal plan to support BC Transit networks outside of the Lower Mainland.
Capital funding of $15.9 billion over three years will support transit, infrastructure and highway improvements to connect communities throughout the province.
Total capital investments of $59.9 billion over the fiscal plan are anticipated to support 180,000 good-paying direct and indirect jobs over three years.
People continue to deal with the challenge of daily costs, especially when it comes to finding a home they can afford. Budget 2025 commits an additional $318 million over three years to BC Builds as part of the Province’s goal of delivering thousands more rental homes for middle-income people.
B.C. remains focused on making sure people, not speculators, can find affordable housing by increasing the Speculation and Vacancy Tax to 3% for foreign owners and untaxed worldwide owners, and 1% for Canadian citizens and permanent residents.
The number of lower-income working families receiving help with their monthly rent payment will nearly double as part of $375 million in additional funding for rental support programs over three years.
With this increase, the average supplement families receive under the Rental Assistance Program will rise from $400 to $700 per month. An additional 1,600 seniors will receive rental support through the Shelter Aid for Elderly Renters (SAFER) program, with average supplements growing by 30%. This is the second increase to funding for SAFER recipients in the past year.
Stronger-than-expected returns on investments means ICBC can provide another $110 rebate this year to help personal and commercial drivers with costs amid an uncertain economic climate.
The Province is investing $325 million over three years to support safer communities.
This includes $235 million in justice and public safety programs for people to get timely access to justice, a new program to fight vandalism and other property crime, increased police funding and more police officer training seats.
Budget 2025 provides additional funding to expand HEART and HEARTH programs to help more people living outdoors access housing and better support services so the Province can work with communities to help people move indoors and close down encampments.
“We can’t leave our future to the whims of unpredictable forces beyond our borders,” Bailey said. “This is our opportunity to stand up for B.C. families, workers and communities to build a stable and sustainable economy for years to come.”
Budget 2025 presents declining deficits from $10.9 billion in 2025-26 to $10.2 billion in 2026-27 and $9.9 billion in 2027-28.
Learn More:
Read the 2025 Budget and Fiscal Plan: https://www.bcbudget.gov.bc.
BACKGROUNDER
Fiscal plan 2025-26 to 2027-28
Budget 2025 supports growth in B.C.’s economy to create the wealth needed for the services and programs people rely on, while managing finances carefully to strengthen B.C.’s fiscal foundation.
The budget seeks to strengthen the Province’s fiscal position and takes the first steps in charting a long-term path to balance so government can respond to changing needs, while protecting services and growing B.C.’s economy.
To ensure front-line services are safeguarded and B.C.’s finances are managed responsibly, the Province is reviewing all existing programs to ensure they remain relevant, efficient, that they are helping people with costs, and working to grow the economy. Government is also identifying administrative and operational efficiencies through reduced discretionary spending for travel, consulting contracts, business expenses and a hiring pause, with the exception of roles that are crucial to delivering services and programs. These measures aim to save $300 million over the 2025-26 fiscal year, and $600 million in each of the 2026-27 and 2027-28 fiscal years.
Economic outlook
B.C. is expected to see modest economic growth in the absence of tariffs, with real GDP growth projected at 1.8% in 2025 and 1.9% in 2026 as immigration slows and trade uncertainty persists, while inflation trends downward and housing construction remains resilient. Over the medium term (2027-29), economic growth is expected to improve, averaging 2.1% annually, supported by steady employment and wage growth, gains in consumer spending and higher exports supported by liquid natural gas production. U.S. tariffs pose a significant risk to the economic outlook.
Budget outlook
Budget 2025 presents an updated deficit of $9.1 billion for 2024-25, $273 million lower than forecast in the fall 2024 economic and fiscal update. The improvement is due mainly to higher corporate income tax revenues and ICBC net income, partially offset by higher spending, including for emergency response and long-term care funded by statutory authority.
Budget 2025 projects the following declining deficits over the three-year fiscal plan period:
* $10.9 billion for 2025-26
* $10.2 billion for 2026-27
* $9.9 billion for 2027-28
Revenue outlook
Total government revenue is forecast at $84 billion in 2025-26, $85.7 billion in 2026-27 and $88.2 billion in 2027-28. Revenue growth is mainly driven by increasing tax revenues due to recent growth in population and economic activity, as well as increasing natural resource revenues.
The government’s revenue outlook factors in trade-related uncertainty associated with the threat of U.S. tariffs consistent with the economic outlook.
Expense outlook
Expenses over the three-year fiscal plan are forecast at $94.9 billion in 2025-26, $95.9 billion in 2026-27 and $98 billion 2027-28. Investments will help support the programs and services people rely on, including health care, mental health and addictions, housing, public safety, as well as helping people with costs and building a stronger economy.
Budget 2025 includes contingencies allocations of $4 billion each year of the fiscal plan to help manage pressures for critical services and other costs that are uncertain at the time of building the budget, including costs for a new collective-bargaining mandate and emerging costs, such as responding to potential tariff impacts.
Capital investments
Budget 2025 invests a total of $59.9 billion in capital investments over three years, including $15.9 billion to strengthen transit and transportation infrastructure, $15.5 billion to support capital investments in health care and $4.6 billion to build, renovate and seismically upgrade schools.
The capital plan supports 180,000 direct and indirect jobs over three years in communities throughout B.C.
Debt affordability
B.C.’s taxpayer-supported debt is projected to be $97.7 billion at the end of 2024-25, approximately $9.1 billion more than projected in Budget 2024. This increase is due to a higher opening balance following 2023-24, the increased deficit, and pre-borrowing to meet funding requirements early in 2025-26.
Taxpayer-supported debt is expected to increase by $68.8 billion over the fiscal plan as the Province continues to invest in strengthening services and building more schools, hospitals, roads, bridges, transit and housing.
The taxpayer-supported debt-to-GDP ratio, a key metric used by credit rating agencies, is forecast at 26.7% in 2025-26, 30.9% in 2026-27 and 34.4% in 2027-28. B.C.’s debt-to-GDP ratio remains one of the lowest in Canada. It is currently below that of most provinces, including Ontario and Quebec. B.C.’s debt-servicing costs remain at low levels compared to other jurisdictions.
Successive budgets will focus on flattening debt-to-GDP over time, ensuring B.C. retains one of the lowest debt-to-GDP ratios compared to the Province’s peers.
