B.C.’s 2025 budget slashes $300M in spending, amid backdrop of Trump trade war

The provincial budget was unveiled against a backdrop of extreme economic uncertainty created by Trump’s trade war.

The B.C. government is slashing hundreds of millions of dollars in spending in an effort to mitigate the record $10.9-billion deficit anticipated for the 2025-26 fiscal year.

The consolidated operating budget is a whopping $94.9 billion dollars.

In addition to a previously-announced “hiring pause” for non-critical jobs, the province is cracking down on discretionary spending for travel and consulting contracts, as well as various “business expenses,” and assessing its needs around office space.

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The government considers those measures “administrative and operational efficiencies” totaling $300 million. Officials intend to slash twice that amount, $600 million annually, over the following two years, for a total of $1.5 billion in savings over three years.

Finance Minister Brenda Bailey said she’d like to see that number even higher as she aims for a balanced budget in the coming years.

The 2026-27 budget is forecast to be $10.2 billion, in the red with a $9.9 billion anticipated deficit in 2027-28.

“B.C.’s economy experienced moderate growth in 2024 amid relatively high interest rats, persistent price pressures and ongoing global economic uncertainty,” reads the budget. “Looking ahead, lower population growth resulting from changes to the federal government’s immigration policies is expected to moderate the labour market and consumer spending.”

Tuesday’s budget was delivered amid a backdrop of a Canada-U.S. trade war, instigated by President Donald Trump.

Both Trump’s 25 per cent tariffs and weaker global economic activity, due in part to ongoing geopolitical conflicts, are cited as major risks to the fiscal plan.

A $4 billion contingency fund is included in the deficit projections each year.

Budgets for several ministries re-calibrated

While the ministries of health, children and family development, education, social development and poverty reduction saw increases in their annual budgets, several saw what appeared to be potential decreases.

“Every ministry will be doing a program review,” added Bailey, in a briefing to reporters.

The Ministry of Agriculture and Food received an estimated $229 million last year and will get only $143 million in budget 2025-26, while the Forests Ministry falls from $1.4 billion to $891 million. This year’s allotment is slightly higher than last year’s budget, for which the ministries went significantly over, according to government staff.

The Ministry of Agriculture was allocated $130 million in its base budget last year.

The Ministry of Emergency Management and Climate Readiness spent $467 million last year, significantly over its allocated $115 million budget, and this year it’s starting with $125 million in planned spending.

“The spending plans for the Ministry of Forests and the Ministry of Emergency Management and Climate Readiness include base amounts to fight wildfires and deal with floods and public emergencies,” reads the budget document. “Unanticipated or unpredictable occurrences may affect expenses in these ministries.”

Staff from EMCR told CTV News this year’s budget is actually slightly more than they were initially allotted last year, but that the ministry went over budget due to disaster response in 2024, making it appear it’s been allocated less money this year when that’s not the case. They emphasized that if they need more than the allotted funds to respond to new disasters, EMCR has the authority to “spend what is needed.”

The Ministry of Finance went over budget by $1 billion last year, largely due to exercising statutory authority the minister has to cut cheques for various projects, with $845 million going toward “shelter-related costs funded through the Housing Priority Initiatives Special Account.”

Going forward, the Finance Ministry is once again budgeted for approximately $1.5 billion, give or take a few million each year.

The budget for the premier’s office was $17 million last year, but will grow to $18 million a year for the next three years.