B.C. Closes Fiscal Year with $7.35B Deficit

The B.C. government released its Public Accounts for the 2024–25 fiscal year, revealing a deficit of approximately $7.35 billion—$564 million lower than projected in Budget 2024 and nearly $1.8 billion less than the third-quarter forecast of about $9.1 billion. The result reflects stronger-than-expected revenues—largely from increased tax receipts and ICBC earnings—offset somewhat by surging expenses tied to wildfire responses, healthcare, social services, and education. Meanwhile, total debt rose to nearly $133.9 billion, with taxpayer-supported debt reaching 23.2% of GDP.

Finance Minister Brenda Bailey hailed the results as a testament to the government’s balanced approach amid economic pressures. She noted that “despite challenging conditions, this government is making progress on the things that matter to British Columbians,” such as investments in healthcare, housing and infrastructure that help mitigate climate emergencies. Public service advocates echoed her optimism, saying the spending is critical.

Opposition parties and fiscal watchdogs expressed concern over mounting operating debt. While complimenting the revenue gains, the Conservatives warned that debt has ballooned well past previous estimates and that increased borrowing, even at favorable rates, will burden future budgets. They criticized the government’s fiscal trajectory and called on the government to take the fiscal crisis seriously.