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3mo ago

British Columbia Posts $7.3 Billion Deficit, Undercutting Budget Forecast

Stronger-than-expected revenues drove the smaller deficit with spending held below forecast

Roses bloom in a flower bed in front of the B.C. Parliament Buildings, home of the BC Legislature, in downtown Victoria, on Aug. 26, 2021.

Overview

  • The $7.3 billion shortfall for 2024-25 came in $564 million below the Budget 2024 forecast and $1.8 billion under the third-quarter projection.
  • Revenue growth outpaced expectations by roughly $2.5 billion, led by investment earnings and higher ICBC commercial revenues.
  • Taxpayer-supported debt rose by $23.7 billion to $99.1 billion, pushing the debt-to-GDP ratio to 23.2 percent.
  • Economic indicators showed 1.2 percent GDP growth and a 5.6 percent unemployment rate, each diverging from national averages.
  • Infrastructure investment reached a record $10.4 billion, funding projects such as the Mills Memorial Hospital replacement and the Broadway subway expansion.