From record deficit to ICBC rebate, here are highlights of British Columbia’s budget

VICTORIA — Here are some highlights of British Columbia’s budget, delivered by Finance Minister Brenda Bailey on the same day that U.S. tariffs on imports from Canada were enacted, setting off a North American trade war.

A RECORD DEFICIT, AGAIN

The budget forecasts the province’s first $10-billion deficit, with the gap between revenue and expenditure predicted to hit $10.9 billion in 2025/26.

Last year’s budget initially forecast a 2024/25 deficit of $7.9 billion — a record at the time — before a series of revisions saw it adjusted to $9.1 billion. The government predicts the deficit will fall to about $9.9 billion in 2027/28.

CONTINGENCY PLANS

The budget includes an annual contingencies fund of $4 billion for each of the next three years.

It sets aside the funding for “uncertain or unforeseen matters,” that include collective bargaining costs, future initiatives and responses to the trade war with the United States.

NO SPLASHES BUT NO SLASHES

Bailey says the budget doesn’t have “splashy new announcements.”

But the budget isn’t broadly slashing spending in response to the trade war with the U.S. — in fact, spending is slated to slightly increase over the three-year fiscal plan.

Consolidated operating expenses total $94.9 billion in 2025/26, rising to $98 billion by 2027/28. Capital spending in 2025/26 meanwhile rises from a forecast of about $19 billion in last year’s budget to a forecast of $20.2 billion in the new budget.

ANOTHER ICBC REBATE

Eligible drivers, both commercial and private, will get a $110 ICBC rebate, with payments expected in April.

It’s the fourth rebate since the 2021 revamp of the province’s auto insurer, and the budget papers say it’s possible due to “better-than-expected investment returns and prudent financial management.”

Basic insurance rates will be maintained until March 31, 2026.

This report by The Canadian Press was first published March 4, 2025

The Canadian Press