Overview
- Finance Minister Brenda Bailey tabled a plan projecting a record $13.3 billion deficit in 2026/27 after a $9.6 billion shortfall this year, with debt and annual interest costs rising toward roughly $183 billion and about $6.4–$6.5 billion respectively.
- The lowest personal income tax rate increases by 0.54 percentage points to 5.6% on the first $50,363 of income after July 1, 2026, with about 60% of filers paying more and an average impact of $76 as low‑income credits are enhanced and indexation is paused at 2026 levels.
- The PST base broadens to many professional services and some exemptions are removed, the School Tax rises for homes over $3 million, the speculation and vacancy tax for foreign owners increases to 4%, and property‑tax deferment will carry a higher interest charge.
- The province will reduce the broader public sector by 15,000 FTEs over three years, including about 2,500 civil‑service roles largely through attrition and voluntary departures, targeting $625 million in first‑year savings even as recent wage settlements add about $1.2 billion in costs.
- Selected capital projects are being delayed or re‑paced, including Phase 2 of Burnaby Hospital, a University of Victoria student‑housing project and seven long‑term care facilities, and the intake for $10‑a‑day child care is frozen pending a review while health, education and public safety are prioritized.