Tuesday September 16, 2025 | VANCOUVER, BC
by Mary P Brooke, Editor | Island Social Trends
BC reported a deficit of $11.6 billion yesterday in their first quarterly report.
That includes three years of worsening deficits, from various impacts on the economy including lower sales of natural gas and lumber.
Even though corporate tax revenues were up in Q1 2025, revenues from property transfer taxes were down as were personal income tax which is expected to lead to softening consumer purchasing (which reduces provincial sales tax into government coffers).
A path back to balance?
Is there a path back to balance in the budget? Premier David Eby addressed that in a press conference today from Canada Place in Vancouver.
“Yes, we will deliver a path back to balance for British Columbians,” said Premier Eby today.
There are two components to that, he outlined:
- “The work that we’re doing to reduce administration and waste in the public service and health authorities, to focus those resources on front line services.”
- “Coordinating government better. We need to be able to deliver services to British Columbians in the way that they expect — in a way that is easily accessible, that is fast and efficient and leverage technology. That work is also happening about how to deliver services more efficiently across government. “
Only choice is economic growth:
Increasing the size of the economy is the only way up and out of this challenge so that services can be delivered.
“We have a significantly growing population, we have a significantly aging population, the demands on our health care system, long-term care, education system, are only going to intensify.
“We can’t stop building schools (to educate children)… or the hospitals that are needed (to care for a growing population) … or reduce expenditure on transit (people getting to work and reducing congestion on roads),” the premier outlined.
“So, that leaves only one possibility, that is to grow the economy,” said Eby today.
Reducing reliance on the US:
Two of the five major projects listed by the federal government last week are in BC: LNG Canada Phase 2 and the Red Chris Copper Mine. Both are in the energy sector, and Eby pointed out that the announcement today that the Nisga’a Nation, Rockies LNG and Western LNG have received their environmental assessment certificate for the Indigenous-led Ksi Lisims LNG project.
Much of the economic drive forward has been spurred by Canada and BC seeking to reduce reliance on doing trade with the United States. The energy sector gives Canada an edge, and much of that is happening in BC.
Look west:
On a related economic question, Premier Eby today reiterated that BC is getting the short end of the stick when it comes to equalization payments — funds that are received in much higher amounts by Ontario, Quebec and other eastern provinces while BC gets little to none.
He urges Prime Minister Mark Carney to “look west”, sort of a flavour of “go west young man” from the cowboy days of western expansion in the 1800s. Very much a new start.
Eby insists that BC is the engine of the new Canadian economy. That includes the energy and mining sectors as well as lumber and the tech innovation sector, as well as being a natural gateway for exporting to Pacific Rim countries.
Eby seems to be on compatible political terms with Prime Minister Mark Carney and the federal government (including under former Prime Minister Justin Trudeau) adopted many BC ideas like child care, BC Builds (now fashioned as Build Canada Homes), and a way to handle supporting people during the pandemic (back room meeting with then Premier John Horgan). It’s probably time that BC be included in a more substantive way in the restructuring of the Canadian economy.
Budget details around the tobacco settlement:
Premier Eby said today that he opposed the Auditor General’s wish to show BC’s tobacco settlement revenue in last year’s fiscal report, that until the monies were confirmed that showing the $3.7 billion windfall on the books would be ‘counting chickens before they are hatched’.
The funds are being used for health care and other services that people need, said Eby. Yesterday, Finance Minister Brenda Bailey said that $2.7 billion now shows as revenue in the 2025 First Quarterly Report (the settlement funds actually roll in over 18 years).
Key to note here is that the funds were technically received to help with health-care related to lung disease and cancer (as related to smoking tobacco) but that the Province is taking a broader view to using the funds for health-care programs that are already in motion to deal with lung disease and cancer (yesterday Bailey emphasized how cancer care centres continue to roll out in BC).
===== RELATED:
NEWS SECTIONS: 43rd PARLIAMENT of BC | ENERGY SECTOR