VICTORIA 鈥� The days leading up to British Columbia Finance Minister Brenda Bailey鈥檚 first budget had been a blur, she said, each 鈥渂lended into the other鈥� as she and her staff tried to keep up with unspooling developments in a potential Canada-U.S. trade war.
Hours after that conflict became a reality on Tuesday, Bailey unveiled a budget that she said defended the province against U.S. President Donald Trump鈥檚 鈥渦njustified鈥� tariffs on Canadian goods that risked tens of thousands of jobs and tens of billions in economic losses for 小蓝视频
The budget includes a record deficit that tops $10 billion for the first time, as well as $4 billion in annual contingencies for each of the next three years to cover 鈥渦npredictable costs鈥� including tariff responses.
Bailey said the budget was focused on education and health care, while also boosting a 鈥渟elf-sufficient economy.鈥�
She said the U.S. tariffs would come at great cost to 小蓝视频 鈥� but now was not the time to retreat by cutting spending on public services.
鈥淲hile our economy is built to withstand this threat better than most provinces, the impact would still be severe,鈥� Bailey said in a speech to the legislature.
The extraordinary backdrop to Bailey鈥檚 inaugural financial platform was underscored when Premier David Eby delivered a pre-budget address to media, government staff and stakeholders at the Victoria Conference Centre.
He said 鈥渁ll bets are off鈥� in the economic conflict with Canada鈥檚 biggest trading partner.
鈥淲e have no choice but to respond in kind to the United States,鈥� Eby said, standing in front a screen emblazoned with 鈥渂uy小蓝视频鈥� logos.
Eby said the budget came in the context of a 鈥渕assive shift in global politics,鈥� citing Trump鈥檚 decision to freeze military funding for Ukraine, an event he called 鈥渄eeply disturbing.鈥�
鈥淲e will meet this moment with dignity, with courage, resolute in our willingness to stand up for what we believe in,鈥� he said, adding 鈥渨e will fight and we will win.鈥�
Government-run 小蓝视频 liquor stores would no longer sell products from Republican U.S. states, he said.
Despite the peril posed by the trade war, Bailey said core services would not be cut, even if there were no "splashy" expenditures this year.
The budget includes $4.2 billion over three years to increase capacity in the health system, and a further $15.5 billion for capital investments in hospitals and other facilities over the same period.
鈥淲e will manage our finances carefully so we can continue our work to improve health care, education and other core services, without adding fees or hiking costs,鈥� she said.
The budget predicts a record deficit of about $10.9 billion in the next fiscal year starting April 1, up from a revised forecast of $9.1 billion this year.
The province鈥檚 rising deficit has previously been eyed skeptically by ratings agencies, with S&P Global Ratings dropping 小蓝视频鈥檚 credit score last April for the third time since 2021. Another agency, Moody鈥檚, maintained the province鈥檚 long-standing AAA credit rating but revised its outlook to negative.
In updated forecasts provided with the budget on Tuesday, the Finance Ministry said the trade war with the United States could cost 小蓝视频 $43 billion in cumulative GDP losses and 45,000 jobs by 2029.
小蓝视频鈥檚 annual revenue losses could reach as much as $3.4 billion, a sum Bailey said was more than the budgets for most provincial ministries with the exception of health, education and social services.
Corporate profits could tumble by as much as $5 billion per year, the forecasts show.
鈥淲hen faced with big challenges, there are those who might say we should retreat and respond by cutting spending on the public services that people rely on,鈥� Bailey said.
鈥淏ut we know that this would only weaken the services we all need and drive up costs for people when they can least afford it.鈥�
小蓝视频 Conservative finance critic Peter Milobar said after the budget was presented that there was nothing that countered the tariff response for meaningful programs or supports or even possibilities.
鈥淲hen the minister talks about $4 billion in contingencies, including supports for impacts of tariffs, I鈥檇 be remiss if I didn鈥檛 point out that last year鈥檚 budget projected a $3.88 billion contingency fund in this year鈥檚 budget. That means $112 million extra is in this budget than what they were already planning on budgeting last year. Hardly an aggressive response to potential impacts of tariffs.鈥�
The Greater Vancouver Board of Trade gave the budget a letter grade of C- and expanded its report card for the Trump tariffs and gave the province an F.
Board CEO Bridgitte Anderson says the multibillion-dollar deficit left the government little room to respond to the unjustified tariffs.
鈥淏udget 2025 includes another record-high deficit, as we spent our fiscal advantage, with overall debt projected to balloon by $75 billion by 2028. While the government has talked openly about the need to grow the economy and attract private sector investment, we await the transition from words to action.鈥�
Fiona Famulak, the CEO of the 小蓝视频 Chamber of Commerce said the budget was sobering for both business and 小蓝视频 residents.
鈥淚t does not deliver the economic incentives, tax changes, programs or policy shifts that are required to kick-start our economy and which we have been advocating for since before the last election,鈥� she said.
Trump's manoeuvres had already forced the government to backtrack on some spending. It cancelled its election promise of a $1,000 grocery rebate and froze some public-sector hiring as it prepared for the trade war.
The budget includes a $110 IC小蓝视频 rebate to drivers, the fourth rebate since the introduction of the insurer's so-called "enhanced care model" was introduced in May 2021. Basic insurance rates will be unchanged until March 31, 2026.
Burnaby Resident Grant Hsu said that while he was aware the government had cancelled the promised grocery rebate, he was holding out hope it might still be in the budget.
鈥淚 believe all British Columbians are keen to show solidarity with Canada amid the trade war by buying more Canadian products and supporting the Canadian economy, and many households still need financial support to weather through these uncertainties," said Hsu who makes his living posting on YouTube.
Hsu said he's been watching the situation around the 小蓝视频 budget closely.
鈥淢ost citizens like me care about the support for 小蓝视频 families, but I didn鈥檛 see much in today鈥檚 budget."
This report by The Canadian Press was first published March 4, 2025.
Marcy Nicholson, The Canadian Press
