BC Budget 2025: the most consequential in province’s history

In the shadow of 25 per cent Trump tariffs imposed at midnight, Premier David Eby and BC Finance Minister Brenda Bailey delivered a budget and economic plan designed to prepare for the economic storm ahead. 

Budget 2025 puts a premium on economic stimulus and leans heavily into implementing an economic blueprint designed for life without free and fair trade with the United States. 

It also dovetails with the plan announced by Premier David Eby earlier in the day to respond to punishing economic penalties imposed by BC’s and Canada’s largest trading partner and former economic and political ally. 

“We can stand on our own two feet,” Eby said at a news conference held the same day as the budget. 

With the stakes higher for BC than ever before, here is what you need to know about Budget 2025. 

Addressing the Economic Hit 

According to the BC government’s own analysis, the provincial economy will have to absorb a significant economic blow because of the tariffs imposed on BC goods including: 

• A $43 billion cumulative decrease to the real GDP by 2029 

• 45,000 fewer jobs by 2029 

• An unemployment rate increase to 6.4 per cent in 2025 and 6.7 per cent in 2026 

• $3.2 billion to $5 billion annual decline in corporate profits  

• Up to $1.4 billion annual loss in revenue 

In response, the BC government is putting a premium on economic stimulus, which will result in deficits of about $10 billion for the next three years.  

A significant chunk of that is $4 billion in contingency funding to help individuals and businesses absorb the economic losses ahead and to help fund the public sector bargaining mandate.  

Investing in BC and Growing the Economy 

BC will invest $45.9 billion over the next three years in capital spending in public infrastructure including roads and transit, schools, affordable housing and post-secondary facilities. 

The budget also reannounced 18 major resource projects that are ready to move forward that are worth $20 billion and are expected to create 8,000 construction jobs. 

Budget 2025 includes funding for a new Integrated marketing Initiative to help companies scale up made-in-BC technology, prepare for exports and find new trading partners. 

The budget also recommits to working to reduce trade barriers between provinces to unlock the potential of buying Canadian first. 

Services Favoured Over Fiscal Restraint 

Health care and education continues to be under stress because of an increasing and aging population. To address those needs, the BC government will invest: 

• $4.2 billion more over the next three years to strengthen healthcare 

• $370 million more over the next three years to hire more teachers and support staff 

• $1.1 billion more to reduce costs for families and make life more affordable 

• $235 million more over the next three years for justice and public safety 

Affordability Measures 

The budget announced that basic car insurance rates delivered by ICBC will be frozen through 2026, the sixth year in a row, and drivers will also receive a $110 rebate. 

This builds on previous family financial relief including removing the tolls off bridges, increasing the BC Family Benefit, investing in school food programs, making transit free for children under 12 and making prescription contraception free.  

The Bottom Line 

With the trade war with the United States becoming the most important issue facing British Columbia, the BC government has put fiscal restraint and individual or corporate tax relief on the back burner and has made service support and economic stimulus the top priorities for government. 

The tradeoff is higher deficits over the next three years and higher debt.  

The stakes for BC have never been higher and this budget is the most consequential in the province’s history.