Finance Minister Brenda Bailey unveiled the provincial budget March 4, the same day U.S. President Donald Trump rolled out 25 per cent tariffs on most Canadian products. Bailey said that with uncertainty on the horizon, it was important to prepare for “what comes next.”
“While our economy is built to withstand the threat of [tariffs] relatively better than most other provinces, the impact would still be significant,” she said. “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.”
The 2025 budget projects a deficit of $10.9 billion for the 2025-26 fiscal year, $10.2 billion for 2026-27 and $9.9 billion for 2027-28. 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.
“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.”
The province is also pledging $235 million in new investments for justice and public safety programs. New funding of $24 million will help improve timely access to justice, including increased capacity at the B.C. Supreme Court. It will also continue the expansion of virtual bail, improving access to justice and community safety. The budget also provides $15 million over three years in new funding to support assistance for victims, immediate family members and witnesses, as well as $24 million for the B.C. Coroners Service, electronic supervision under B.C. Corrections and increased fire inspections.
Additional funding of $67 million over three years will go toward community safety programs, including a new pilot program that will target robbery, shoplifting and other property crimes. The province is continuing to invest in its Repeat Violent Offending Intervention Initiative program and the Special Investigation and Targeted Enforcement Program. These programs help provide co-ordinated response teams made up of police, prosecutors and probation officers to respond to repeat violent offenders.
Additional funding of $104 million over three years will go toward policing programs, including the First Nations and Inuit Policing Program, and for negotiated wage increases for provincial RCMP detachments. It will also support the National Body Worn Camera Program, initiated in 2024.
“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.”
On the issue of housing costs, B.C. is increasing its speculation and vacancy tax to three per cent for foreign owners and untaxed worldwide owners, and one per cent for Canadian citizens and permanent residents. The increase takes effect Jan. 1, 2026, and will generate an estimated additional $47 million in revenue in 2027-28. This money will be invested back into housing in the 59 regions where the tax applies.
The budget also includes an additional $90 million over three years to expand the Homeless Encampment Action Response Team (HEART) and Homeless Encampment Action Response Temporary Housing (HEARTH) programs into new communities. These programs work with local governments and First Nations, non-profit organizations and health-care providers to connect people living outdoors and in encampments with better access to support services, shelter and housing options so they can move inside and encampments can close.
See here for more information about the 2025 B.C. budget and fiscal plan.
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