BC’s Finance Minister Katrine Conroy presented her government’s first quarterly report for the 2024/25 fiscal year on Tuesday, revealing that this year’s deficit is projected to be $8.979 billion; $1.1 billion higher than what was forecast earlier this year.
Conroy stated that costs associated with fighting wildfires are the main contributor to the increased deficit, which is forecast to cost $866 million for the 2024/25 fiscal year—$653 million higher than originally budgeted.
“I’ve seen the impacts of wildfires where I live in the Kootenays and am incredibly grateful for the firefighters who worked day and night to keep us safe. From moving the wildfire service to a year-round operation to implementing the recommendations of the Premier’s Expert Task Force, we are taking strong action to keep people safe now and in future years.”
The province still holds one of the lowest debt-to-GDP ratios compared to other provinces and remains the only province with a triple-A credit rating from a credit rating agency.
Looking ahead to 2025/26 and 2026/27, the First Quarterly Report shows a brighter outlook and stronger revenue forecast compared to this year. Conroy said interest rates are expected to ease next year, which should bolster economic growth, along with natural resource and tax revenues that are also expected to increase.
“During hard times and slower economic growth around the world, some are saying they would make deep cuts and increase fees. That is the wrong approach,” said Conroy.
“We are building a stronger economy and working to bring that strength to everyone by supporting people, building the communities our growing population needs, attracting investment, and providing training so people can access good-paying jobs.”
The province will invest a projected $18 billion in infrastructure this fiscal year, with Conroy highlighting 37 major projects approved for construction, including cancer centres, schools, student housing, and highway upgrades.
Additionally, she said BC will be able to respond to unforeseen changes or expenses with $3.9 billion in contingencies this year.
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