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BUDGET AND FISCAL PLAN
2026/27 – 2028/29
 February 17, 2026

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National Library of Canada Cataloguing in Publication Data
British Columbia.
Budget and fiscal plan. –- 2002/03/2004/05-
Annual
Also available on the Internet.
Continues: British Columbia. Ministry of Finance and
Corporate Relations. Budget ... reports. ISSN 1207-5841
ISSN 1705-6071 = Budget and fiscal plan — British Columbia.
1. Budget — British Columbia — Periodicals. 2. British
Columbia — Appropriations and expenditures — Periodicals.
I. British Columbia. Ministry of Finance. II. Title.
HJ12.B742 352.48’09711’05 C2003-960048-3

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| i
|
TABLE OF CONTENTS  
BUDGET AND FISCAL PLAN  2026/27 to 2028/29
February 17, 2026
Attestation by the Secretary to Treasury Board
Summary............................................................................................................................................................
1
Part 1:  Tree Year Fiscal Plan
Introduction .......................................................................................................................................................
7
Expense ..............................................................................................................................................................
9
Consolidated Revenue Fund Spending ..................................................................................................
9
Protecting the Services People Rely On .................................................................................................
9
Investing in Economic Growth and Security ......................................................................................... 19
Making Neighbourhoods and Communities Safer ................................................................................. 24
BC Public Service .................................................................................................................................. 26
Spending Recovered from Tird Parties ................................................................................................. 36
Transfers to Service Delivery Agencies ................................................................................................... 36
Service Delivery Agency Spending ......................................................................................................... 36
Revenue ............................................................................................................................................................. 40
Major Revenue Sources ......................................................................................................................... 42
Capital Spending ................................................................................................................................................ 49
Taxpayer-Supported Capital Spending .................................................................................................. 49
Projects Over $50 Million ..................................................................................................................... 56
Provincial Debt .................................................................................................................................................. 71
Risks to the Fiscal Plan ....................................................................................................................................... 74
Topic Boxes:
Investments in Health Care ................................................................................................................... 12 
Expenditure Management and Efficiency Review .................................................................................. 27
Look West: Jobs and Prosperity for a Strong B.C. and Canada .............................................................. 31
Investments in Clean Energy ................................................................................................................. 47
Building a Secure and Sustainable B.C. ................................................................................................. 66
Tables:
1.1
Tree Year Fiscal Plan .................................................................................................................
7
1.2.1 Protecting Core Services People Rely On ....................................................................................
9
1.2.2 Investments in the Health Care System ...................................................................................... 11
1.2.3 Children and Youth with Supports Needs Redesign .................................................................... 17
1.2.4 Skilled Workforce Investments ................................................................................................... 20
1.2.5 Making Neighbourhoods and Communities Safer ...................................................................... 25
1.3
Expense by Ministry, Program and Agency ................................................................................. 38
1.4
Revenue by Source ..................................................................................................................... 39
1.5.1 Comparison of Major Factors Underlying Revenue .................................................................... 41
1.5.2 Provincial Income Tax Revenue .................................................................................................. 42

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TABLE OF CONTENTS
ii |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
1.5.3 Corporate Income Tax Revenue .................................................................................................. 42
1.5.4 Sales Tax Revenue ....................................................................................................................... 43
1.5.5 Federal Government Contributions ............................................................................................ 46
1.6
Capital Spending ........................................................................................................................ 49
1.7
Provincial Transportation Investments ........................................................................................ 54
1.8
Capital Expenditure Projects Greater Tan $50 Million ............................................................. 60
1.9
Provincial Debt Summary .......................................................................................................... 71
1.10
Provincial Borrowing Requirements ........................................................................................... 73
1.11
Provincial Debt Changes ............................................................................................................ 73
1.12
Key Fiscal Sensitivities ................................................................................................................ 74
Part 2:  Tax Measures
B.C. Tax Updates ............................................................................................................................................... 80
Tax Measures – Supplementary Information ...................................................................................................... 81
Tables:
2.1
Summary of Tax Measures .......................................................................................................... 79

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| iii
TABLE OF CONTENTS
Part 3:  British Columbia Economic Review and Outlook
Summary ............................................................................................................................................................ 89
British Columbia Economic Activity and Outlook ............................................................................................. 90
U.S. Tariff Assumptions ........................................................................................................................ 91
Labour Market ...................................................................................................................................... 92
Demographics ....................................................................................................................................... 93
Consumer Spending and Inflation ......................................................................................................... 94
Housing ................................................................................................................................................ 97
Business and Government ..................................................................................................................... 99
External Trade and Commodity Markets ............................................................................................... 101
Risks to the Economic Outlook ......................................................................................................................... 103
External Outlook ............................................................................................................................................... 104
Canada ................................................................................................................................................. 104
United States ......................................................................................................................................... 107
Asia ....................................................................................................................................................... 109
Europe .................................................................................................................................................. 110
Financial Markets ............................................................................................................................................... 111
Interest Rates ......................................................................................................................................... 111
Exchange Rate ....................................................................................................................................... 112
Tables:
3.1
British Columbia Economic Indicators ....................................................................................... 90
3.2
Canadian Real GDP Forecast: Consensus versus B.C. Ministry of Finance ................................. 106
3.3
U.S. Real GDP Forecast: Consensus versus B.C. Ministry of Finance ......................................... 108
3.4
Private Sector Canadian Interest Rate Forecasts .......................................................................... 112
3.5
Private Sector Exchange Rate Forecasts ....................................................................................... 113
3.6.1 Gross Domestic Product (GDP): British Columbia .................................................................... 114
3.6.2 Selected Nominal Income and Other Indicators: British Columbia ............................................ 115
3.6.3 Labour Market Indicators: British Columbia .............................................................................. 115
3.6.4 Major Economic Assumptions ................................................................................................... 116
Topic Box:
Te Economic Forecast Council, Budget 2026 ....................................................................................... 117

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TABLE OF CONTENTS
iv |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Part 4:  2025/26 Updated Financial Forecast (Tird Quarterly Report)
Introduction ....................................................................................................................................................... 121
Revenue .............................................................................................................................................................. 123
Expense .............................................................................................................................................................. 123
Contingencies .................................................................................................................................................... 124
Government Employment (FTEs) ...................................................................................................................... 124
Provincial Capital Spending ................................................................................................................................ 125
Provincial Debt ................................................................................................................................................... 126
Risks to the Fiscal Forecast .................................................................................................................................. 127
Supplementary Schedules ................................................................................................................................... 127
Tables:
4.1
2025/26 Forecast Update ............................................................................................................ 121
4.2
2025/26 Financial Forecast Changes ........................................................................................... 122
4.3
2025/26 Capital Spending Update.............................................................................................. 125
4.4
2025/26 Provincial Debt Update ................................................................................................ 126
4.5
2025/26 Operating Statement .................................................................................................... 127
4.6
2025/26 Expense by Ministry, Program and Agency ................................................................... 128
4.7
2025/26 Revenue by Source ....................................................................................................... 129
4.8
2025/26 Expense by Function .................................................................................................... 130
4.9
2025/26 Capital Spending .......................................................................................................... 131
4.10
2025/26 Provincial Debt ............................................................................................................ 132
4.11
2025/26 Statement of Financial Position .................................................................................... 133
Appendix ........................................................................................................................................................... 135

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
February 17, 2026 
As required by Section 7(1)(d) of the Budget Transparency and Accountability Act, I confirm that Budget 2026 contains the 
following elements:
•
Fiscal forecasts for 2026/27 to 2028/29 (provided in Part 1) and economic forecasts for 2026 to 2030
(provided in Part 3). 
•
A report on the advice received from the Economic Forecast Council (EFC) in December 2025 (updated in
January 2026) on the economic growth outlook for British Columbia, including a range of forecasts for 2026 and 
2027 (see Part 3, page 117).
•
Material economic, demographic, fiscal, accounting policy, and other assumptions and risks underlying Budget 2026
economic and fiscal forecasts. In particular: 
−
British Columbia’s economic outlook reflects continued uncertainty in global trade and lower population growth 
as a result of the federal government’s immigration policies. The Budget 2026 economic projections for British 
Columbia are within the range of the outlook provided by the Economic Forecast Council. Growth assumptions 
for the province’s major trading partners are prudent to reflect external risks.
−
The economic forecast incorporates the estimated effect of some fiscal policy measures announced in 
Budget 2026, and the effect of full budget policy measures will be incorporated in the updated economic forecast 
in the First Quarterly Report. This practice reflects that budget policy measures are generally not finalized while the 
economic forecast is being developed.
−
The corporate income tax revenue forecast is based on projections for national corporate taxable income
provided by the federal government. 
−
Natural gas royalty forecasts continue to adopt a lower natural gas price forecast compared to the private sector 
average in order to maintain prudence against volatility. 
−
The fiscal plan includes three-year financial projections for school districts, post-secondary institutions and 
health authorities, based on plans submitted by those entities to the Ministries of Education and Child Care, 
Post-Secondary Education and Future Skills, and Health, respectively, and for other service delivery agencies and 
commercial Crown corporations. 
−
The fiscal plan includes Contingencies vote estimates, totalling $5 billion in each year of the fiscal plan for which 
spending requirements cannot be estimated with certainty. This allocation reflects funding set aside for uncertain 
or unforeseen matters, future initiatives, caseload pressures, and collective bargaining mandate costs. Budget 2025
expenditure management targets for 2026/27 onwards have now been reflected in ministry base budgets. The
fiscal plan does not include the provision of a forecast allowance.
Budget 2026 and the three-year fiscal plan reflect directions and decisions of Cabinet, Treasury Board and the Minister of 
Finance.
To the best of my knowledge, Budget 2026 and the three-year fiscal plan conforms to the standards and guidelines of 
generally accepted accounting principles for senior governments as outlined in Note 1 of the 2024/25 Public Accounts. 
I thank the staff in government ministries and agencies for their contribution to this document. I especially acknowledge 
and thank staff in the Ministry of Finance, whose professionalism, commitment and expertise were essential to the 
completion of this budget and fiscal plan. 
Douglas S. Scott
Deputy Minister and Secretary to Treasury Board

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 1
SUMMARY
|
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
trades training and supporting major job-creating 
projects, government must also be disciplined 
about the choices ahead to safeguard critical 
services. 
Budget 2026 makes realistic choices to raise 
revenue, making the public sector more efficient 
to ensure more dollars reach the front lines. At the 
same time, it focuses on protecting services, 
keeping taxes low for working families, and 
strengthening B.C.’s finances for the long term.
Protecting Your Services
Primary Care and Healthcare
Budget 2026 provides over $2.8 billion in new 
funding over three years to protect, strengthen 
and expand B.C.’s health care system, including 
acute care, community care, long-term care, 
mental health and addictions, and services 
provided through regional health authorities and 
Securing B.C.’s Future
Budget 2026 makes careful choices to protect what 
matters most and secure B.C.’s future.
Over the last eight years, the B.C. government 
has focused on the foundations of a strong 
province by expanding access to family doctors, 
more affordable housing, easing everyday costs 
for families through lower cost child care and the 
BC family benefit, and investing in building the 
hospitals, schools and roads people rely on.
Budget 2026 protects these gains while also facing 
a tough reality. 
Global uncertainty is slowing growth everywhere. 
Global instability and volatile commodity prices 
are putting pressure on public finances.
While the government takes action to grow the 
economy and invest in B.C.’s future by doubling 
($ millions)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Revenue …………………………………………………………
85,082
     
85,523
     
88,578
     
91,754
     
Expense …………….....…....………………….......................
(94,696)
   
(98,832)
    
(100,743)
 
(103,191)
 
Deficit .......................……………………………………………
(9,614)
      
(13,309)
   
(12,165)
   
(11,437)
   
Capital Spending:
Taxpayer-supported capital spending …………………........
12,467
     
13,664
     
13,117
     
10,885
     
Self-supported capital spending ……………………………..
4,606
      
5,013
      
5,048
      
5,194
      
Total capital spending ………………………………………
17,073
    
18,677
    
18,165
    
16,079
    
Provincial Debt:
Taxpayer-supported debt ……………………………………… 116,540
   
142,897
   
166,906
   
189,019
   
Self-supported debt ……………………………………………
37,519
    
40,477
    
42,949
    
45,540
    
Total debt ………………………………………………………
154,059
  
183,374
  
209,855
  
234,559
  
Taxpayer-supported Debt Metrics:
Debt-to-GDP ratio ………………………………………………
26.1%
30.6%
34.4%
37.4%
Deficit-to-GDP ratio ……………………………………………
2.2%
2.9%
2.5%
2.3%
Interest bite (cents per dollar of revenue) ……………………
4.9
           
6.2
           
7.3
           
8.2
           
Economic Forecast:
2025
2026
2027
2028
Real GDP growth ………………………………………………
1.5%
1.3%
1.8%
1.9%
Nominal GDP growth ……………………………………………
4.1%
4.4%
4.1%
4.2%

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SUMMARY
2 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
other service delivery agencies. Budget 2026 also 
includes $131 million in new funding for mental 
health and addictions treatments, implementing 
recommendations made by the Province’s Chief 
Scientific Officer, Dr. Daniel Vigo.
Increasing Student Supports
Budget 2026 also provides new funding of 
$634 million, over three years, for the K-12 school 
system. Tis includes funding for the Classroom 
Enhancement Fund for additional teachers, special 
education teachers, and teacher psychologists and 
counsellors for students with support needs.
Child Care
Government is continuing its historic investments 
in child care by investing $330 million over three 
years to support B.C. families with affordable child 
care through programs like the Child Care Fee 
Reduction Initiative. Budget 2026 also includes 
$25 million in capital and operating spending over 
the next three years for school districts to use for 
equipment and capital upgrades to support more 
before and after school care.
Children and Youth with Support Needs
Budget 2026 invests $475 million in new funding 
over three years for children and youth with 
support needs by providing direct funding to 
families, strengthening services, expanding choice 
for families, and improving coordination across 
health, education, and community systems. 
A modernized system will be delivered, building 
on what already works for families – more flexible, 
more streamlined, more equitable, and better 
aligned with the diverse needs of children and 
youth.
Making Communities Safer
Budget 2026 provides $139 million over three 
years to provide more community-specific supports 
to respond to public safety concerns related to 
repeat, violent offenders and chronic property 
crime in B.C. communities – including the 
new Chronic Property Offending Intervention 
Initiative. Funding also helps to build capacity to 
ensure timely access to justice and other public 
safety programs.
Government will continue to ensure police 
have resources to combat extortion threats, 
including supports for victims and expanding the 
Provincial Forensic Firearms Lab to help accelerate 
investigations and charge approvals.
Expenditure Management
Government continues the important work 
of reviewing spending to achieve expenditure 
management targets and ensure public program 
and service delivery is efficient, effective and 
affordable over the long term. Government has 
exceeded initial targets set in Budget 2025 through 
operational savings and program moderation. 
Looking ahead, Budget 2026 focuses on continued 
savings and a more efficient government through 
administrative and space consolidations, cutting 
non-essential spending, while protecting frontline 
jobs and services. Tis includes government’s 
commitment to reduce the size of the public sector 
by 15,000 FTEs over the three-year fiscal plan. 
By making careful choices and reinvesting savings 
into protecting core services, new funding in 
Budget 2026 is at levels more comparable to 
pre-pandemic Budget 2020.
For more details, see the Expenditure Management 
and Efficiency Review topic box starting on 
page 27.
Updating Taxation
Tax revenues are the primary source of provincial 
revenue used to fund the services British 
Columbians rely on. As a part of government’s 
long-term efforts to keep up with service demands 
and improve the fiscal outlook, government has 
taken careful decisions in Budget 2026 to increase 
provincial revenue by updating tax programs to 
reflect B.C.’s economy, get better results for people 
and to prevent cuts to critical services. Starting the 
2026 tax year, government is increasing the tax rate 
of the first income tax bracket by 0.54 percentage 
points, while offsetting the extra cost for 
lower-income earners. Te budget also pauses 
tax bracket indexing from 2027 through 2030.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 3
SUMMARY
Government continues to help people with costs 
through measures like the BC Family Benefit, 
more affordable child care, and lower car insurance 
rates.
Further details are provided in Part 2: Tax Measures 
starting on page 79.
Sustaining Capital Spending for the Future
Te Province is continuing to build the 
infrastructure required to meet the needs of British 
Columbians with taxpayer-supported capital 
plan allocations of $37.7 billion over the next 
three years. Tis, coupled with $15.3 billion in 
self-supported capital projects, will help support 
the construction sector. After years of building up 
infrastructure to close gaps and strengthen services, 
B.C. is adjusting the pace of the capital plan. 
Re-pacing the capital plan will provide more fiscal 
sustainability and predictability and will allow 
infrastructure investments to continue over the 
longer term.
For more information on government’s capital 
planning approach, see the topic box on page 66.
Growing the Economy
Look West: Jobs and Prosperity for a Stronger BC and 
Canada sets a target to attract $200 billion in new 
private sector investments over the next decade, 
ensuring British Columbia is at the forefront of 
delivering nation building projects that create 
good jobs, raise revenues to pay for services, and 
strengthen government’s long-term fiscal outlook.
Budget 2026 includes $283 million in new funding 
over three years to support the commitments set 
out in this targeted plan. Of this, $241 million 
over three years will double funding for trades 
training and SkilledTradesBC, giving tens of 
thousands of British Columbians the chance to 
earn more, build careers, and step into good jobs.
A new $400 million British Columbia Strategic 
Investments Special Account will set B.C. up 
to co-invest and work collaboratively with the 
Government of Canada as it invests billions of 
dollars to secure Canada’s sovereignty, along with 
the jobs and economic opportunities these projects 
will bring.
Building on the past three years of progress 
in speeding up and streamlining permitting, 
Budget 2026 invests over $40 million in additional 
funding over three years to provide stable, ongoing 
funding that strengthens permitting capacity 
across the natural resource and tourism sectors. 
Tis investment supports government’s broader 
strategy to modernize permitting and regulatory 
frameworks by removing barriers, delays, and 
duplication for businesses.
Government has made significant investments in 
building up a world-class talent pool by focusing 
on advancing technology and innovation as 
a major economic driver and job creator in 
B.C. Provincial programs such as the Integrated 
Marketplace Initiative are helping companies start 
up and grow, and delivering the infrastructure 
needed to participate in the sector.
Government is taking more action to support 
business investments in Budget 2026 by 
introducing a new temporary manufacturing and 
processing investment tax credit to encourage 
investments in buildings, machinery and 
equipment used in manufacturing and processing. 
Te Province is also aligning the B.C. Scientific 
Research and Experimental Development tax 
credit with recent federal changes to expand access 
and encourage businesses to conduct research and 
development in B.C. and Canada.
Te Province will carefully explore the suitability of 
adopting a patent box regime for the life sciences 
sector. Te approach could offer companies lower 
taxes on profits generated from research and 
development that was developed and patented 
in Canada.

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SUMMARY
4 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Economic Outlook
B.C.’s economy saw mixed performance among 
sectors in 2025 amid U.S. tariffs and related 
global economic uncertainty, and declining B.C. 
population growth. Consumer spending on 
goods was strong through the first half of the year 
but has weakened in recent months. Te Bank 
of Canada lowered interest rates last year and 
inflation has remained within their target range. 
Residential construction remained above average 
in 2025 despite declining from the high levels of 
activity seen in recent years, and home sales were 
subdued in 2025. Meanwhile, investment saw 
steady growth despite headwinds from economic 
uncertainty. B.C.’s exports have been resilient amid 
U.S. tariffs and were unchanged compared to the 
prior year.
Te Ministry of Finance estimates that B.C.’s 
economy expanded by 1.5 per cent in 2025. 
Looking ahead, the economy is forecast to grow 
by 1.3 per cent in 2026 before increasing to 
1.8 per cent in 2027. Modest growth is expected 
over the next two years due to trade uncertainty, 
as well as impacts from the federal government’s 
reduced immigration targets. As the economy 
adjusts to these factors, economic growth is 
expected to improve over the medium-term as 
immigration levels normalize and uncertainty 
over trade subsides. Over the medium-term 
(2028 to 2030), real GDP growth is expected to 
average 2.1 per cent annually.
Overall, the Budget 2026 near-term forecast for 
B.C. real GDP growth is prudent compared to 
the average outlook provided by the Economic 
Forecast Council (EFC), while the medium-term 
outlook is within the range provided by the EFC.
Among provinces, B.C.’s economic growth is 
expected to be tied for fourth in 2026 and tied 
for second in 2027, according to private sector 
forecasters (a subset of the EFC that regularly 
forecasts economic performance in all provinces, 
as of January 16, 2026).
Fiscal Outlook and Debt   
Taxpayer-supported debt is forecast to end 
2025/26 at $116.5 billion by March 31, 2026, 
down $2.2 billion from Budget 2025 due to 
improved operating results and lower capital 
spending. As a result, taxpayer-supported 
debt-to-GDP is also expected to be lower 
at 26.1 per cent, compared to 26.7 per cent 
last budget.
Debt levels are expected to increase over the 
fiscal plan period to finance operating and capital 
requirements. Taxpayer-supported debt is forecast 
to be $189.0 billion by 2028/29 while continuing 
to remain affordable and low relative to other 
jurisdictions.
As a result of careful choices, Budget 2026 protects 
commitments and investments made over the last 
eight years, while achieving a path of declining 
deficits from 2026/27. As a result, government 
is showing a downward trending deficit-to-GDP 
ratio falling from 2.9 per cent in 2026/27 to 
2.3 per cent by 2028/29.
1.3
1.2
1.5
1.8
1.8
1.3
1.9
2.4
0.0
1.0
2.0
3.0
B.C. real GDP (annual per cent change)
Sources: B.C. Ministry of Finance; Economic Forecast Council
2026
2027
Economic Forecast Council
(January 6, 2026)
Ministry of Finance  
Budget 2026
Economic Forecast Council
(January 6, 2026)
Ministry of Finance  
Budget 2026
low
average
high
low
average
high
Budget 2026 E conomic F orecast
46.6
39.7
37.7
8.7
23.6
47.6
40.8
38.9
9.0
27.4
0
5
10
15
20
25
30
35
40
45
50
CAN
QC
ON
AB
BC
Net-liabilities as a percentage of GDP
2025/26 Forecast
2026/27 Forecast
%
* Net-liabilities to GDP is used for inter-provincial comparison due the availability of public information. Figures were sourced 
from each jurisdiction’s latest fiscal or economic update published from February 2025 through November 2025. B.C. figures are 
based on the Budget 2026 forecast.
Debt Affordability Among Provinces

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 5
SUMMARY
Risks to the Fiscal Plan
Te main risks to the government’s fiscal plan 
include:
• Continued uncertainty around restrictive global 
trade policies, U.S. tariffs, and renewal of the 
Canada-United States-Mexico Agreement;
• Immigration and population volatility;
• Weaker global economic activity and ongoing 
geopolitical conflicts, which contribute to the 
potential volatility in the economic and fiscal 
outlooks;
• Increased costs and demands for government 
services, such as health care, social programs or 
recovery from climate related disasters; and
• Changes in timing of capital projects and related 
spending, which may be influenced by several 
factors, such as market conditions and weather.
To mitigate against unexpected and unknown 
costs, the Contingencies Vote includes allocations 
of $5 billion in each year of the fiscal plan. Tis 
includes funding to address caseload pressures, 
cost increases related to a new collective bargaining 
mandate and emerging priorities. Budget 2026
does not include the provision of a forecast 
allowance.
Conclusion
Budget 2026 takes careful steps to protect our 
services and economic prospects in a time 
of continuing global economic uncertainty. 
Government is protecting the services people rely 
on and making investments in B.C.’s long-term 
economic growth while working to improve the 
fiscal plan over the longer term.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 7
PART 1
|
THREE YEAR FISCAL PLAN
Table 11   TKree <ear Fiscal Plan
($ millions)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan   
2027/28
Plan   
2028/29
Revenue ………………………………………………….......................
85,082
       
85,523
       
88,578
       
91,754
       
Expense …………….....…....………………..………...........................
(94,696)
     
(98,832)
     
(100,743)
   
(103,191)
   
Deficit .......................………………………………………………………
(9,614)
       
(13,309)
     
(12,165)
     
(11,437)
     
Capital spending:
Taxpayer-supported capital spending …………................................
12,467
       
13,664
       
13,117
       
10,885
       
Self-supported capital spending …………………..............................
4,606
        
5,013
        
5,048
        
5,194
        
Total capital spending …………………………………….................
17,073
      
18,677
      
18,165
      
16,079
      
Provincial Debt:
Taxpayer-supported debt …………………………………………………
116,540
     
142,897
     
166,906
     
189,019
     
Self-supported debt ………………………………………………………
37,519
      
40,477
      
42,949
      
45,540
      
Total debt …………………………………………………………………
154,059
    
183,374
    
209,855
    
234,559
    
Taxpayer-supported Debt Metrics:
Debt-to-GDP ratio …………………………………………………………
261
306
344
374
Deficit-to-GDP ratio ………………………………………………………
22
29
25
23
Interest bite (cents per dollar of revenue) ………………………………
4.9
             
6.2
             
7.3
             
8.2
             
Introduction
Budget 2026 takes action to protect services and grow the economy to help secure B.C.’s 
future. Budget 2026 invests $3.9 billion more in operating funding across the fiscal plan 
to protect key public services in the areas of health, education, and social services, while 
taking steps to manage finances closely. Projected deficits decline over the fiscal plan 
period from $13.3 billion in 2026/27 to $11.4 billion in 2028/29, and debt metrics are 
expected to increase but remain affordable relative to other jurisdictions. Government is 
making disciplined choices during a time of economic uncertainty to help protect health, 
education, and social services and grow the economy.
Government’s consolidated operating expense totals $98.8 billion in 2026/27, 
$100.7 billion in 2027/28 and $103.2 billion in 2028/29. Te Contingencies Vote 
includes $15 billion over the three-year fiscal plan for spending uncertainties related to 
new and existing programs as well as unforeseen events. Te revenue forecast rises from 
$85.5 billion in 2026/27 to $91.8 billion in 2028/29, with modest growth incorporating 
additional revenue measures as well as impacts from the economic forecast, year-to-date 
information, and natural-resource activity and commodity price expectations.
Capital spending on schools, post-secondary facilities, housing, health care facilities, 
highways, bridges, and other taxpayer-supported infrastructure, is expected to be 
$37.7 billion over the three-year fiscal plan period. Self-supported capital spending by 
commercial Crown corporations is estimated at $15.3 billion over the next three years, 
mainly for electric generation and transmission projects. Tese commercial investments 
will support future growth while contributing to a clean and inclusive economy.

--- page 18 ---
THREE YEAR FISCAL PLAN
8 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Government’s operating funding initiatives are discussed in the expense section starting 
on page 9. Details on the government’s revenue forecasts are provided in the revenue 
section, starting on page 40. Te capital investments section begins on page 49, which is 
followed by the debt section on page 71 and a discussion on the risks to the fiscal plan on 
page 74.
Government remains committed to incorporating Gender Based Analysis (GBA+) 
into its policy and budget processes. Budget 2026 continues to support meaningful 
reconciliation with Indigenous Peoples.

--- page 19 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 9
THREE YEAR FISCAL PLAN
Expense
Consolidated Revenue Fund Spending
Consolidated Revenue Fund (core government) planned spending over the three-year 
fiscal plan is $85.6 billion in 2026/27, $88.0 billion in 2027/28, and $89.2 billion in 
2028/29 as shown in Table 1.3 on page 38. To mitigate against unexpected and unknown 
costs, the Contingencies Vote includes allocations of $5.0 billion in each year of the fiscal 
plan. Tis includes funding to address caseload pressures, compensation increases related 
to the Balanced Measures Mandate, as well as unexpected costs and risks that may arise.
Budget 2026 includes ministry net budget increases of $3.9 billion across the three-year 
fiscal plan primarily to support key public services such as health, education and social 
services. Tis increase also includes existing funding re-directed to fund new and existing 
programs. Government is also making targeted investments to help reduce costs, deliver 
more homes faster and support critical infrastructure needs such as hospitals, schools 
and transit systems. Funding decisions are underpinned by government’s commitment to 
continue working toward true and meaningful reconciliation by supporting opportunities 
for Indigenous Peoples to be full partners in the inclusive and sustainable province we are 
building together.
Protecting the Services People Rely On
A stronger B.C. for everyone means delivering and protecting the services people rely 
on, particularly as the complexity and variety of needs continues to expand. Government 
continues to make significant investments across critical services with over $5.1 billion 
to strengthen and protect health care, K-12 education, and social supports for people 
who need care and assistance.
Table 1.2.1 Protecting Core Services People Rely On
($ millions)
2026/27
2027/28
2028/29
Total
Health, mental health and addictions care….........................................
408
        
586
        
1,775
     
2,769
     
K-12 education…...................................................................................
180
        
227
        
227
        
634
        
Child Care…...........................................................................................
90
          
110
        
130
        
330
        
New supports for children and youth with support needs…...................
157
        
133
        
185
        
475
        
Children and Youth in Care and Alternative Care…..............................
135
        
170
        
173
        
478
        
Improved disability assistance for couples….........................................
17
          
17
          
18
          
52
          
Income, disability, supplementary assistance…....................................
44
          
(11)
         
88
          
121
        
Community Living BC…….....................................................................
84
          
84
          
84
          
252
       
Total1 ………...………………………………………………………………
1,115
     
1,316
     
2,680
     
5,111
    
Tables may not sum due to rounding
1 Total includes gross spending increases, Contingencies funding, and tax measures (new disability supplement)  

--- page 20 ---
THREE YEAR FISCAL PLAN
10 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Strengthening and Safeguarding the Health Care System
Health care continues to be the single largest investment made by the Province as B.C.’s 
population ages and needs become more complex. Health care spending is forecast 
to continue to grow at a rate of 3.1 per cent annually in each year of the fiscal plan. 
Tis includes funding to recruit and train more health care professionals such as doctors, 
nurses, and long-term care support workers. Tis funding will support the opening and 
ongoing operation of new hospitals and major health capital projects as well as new 
approaches to mental health and addictions care, supporting the most vulnerable.
For more information about government’s investments in the health care system and 
recent progress, see the topic box starting on page 12.
Caseload and Primary Care
Budget 2026 provides more than $2.3 billion in new funding over three years to increase 
health system capacity and support growing demand for services across the full range of 
health services. Tis funding addresses the rising costs of health care providing continued 
support for surgeries, cancer care, pharmacare, and the many services provided by health 
care workers. Caseload and primary care funding supports services delivered in a variety 
of health care settings including hospitals and harnesses the progress to date across 
primary care networks, urgent primary care centres, and community health centres.
Budget 2026 maintains funding implemented in Budget 2025 of $34 million annually to 
continue equitable and affordable access to in vitro fertilization (IVF) for hopeful parents 
throughout British Columbia. Te continuation of this program will allow approximately 
1,800 families annually to receive up to $19,000 towards a single standard cycle of IVF 
treatment at participating B.C. fertility clinics. 
Strengthening and Stabilizing Mental Health Care Services
Building on past investments in mental health and addictions care and guided by 
recommendations made by the Province’s Chief Scientific Officer, Dr. Daniel Vigo, 
Budget 2026 includes $131 million in new funding for mental health and addictions 
treatment. Tis funding will provide intensive, specialized mental health and addictions 
services to individuals with concurrent challenges of complex mental illness, addictions, 
and acquired brain injuries. Funding will support the implementation of Assertive 
Community Treatment teams and involuntary treatment beds in Prince George, 
Maple Ridge and Surrey.
Since 2017, B.C. has added 829 new publicly funded adult and youth withdrawal 
management, sobering and assessment, transition, treatment and supportive recovery 
beds. Previous investments in mental health and addictions treatment continues in 
Budget 2026 including funding for 3,785 treatment and recovery beds, 19 Foundry 
spaces in communities across B.C., Road to Recovery initiatives supporting numerous 
public sector and non-profit service providers, supports for children and youth, and 
Indigenous led treatment and recovery initiatives.
Strengthening Seniors Care
Budget 2026 includes ongoing funding to support the recent memorandum of agreement 
between the Ministry of Health, the Health Employers Association of B.C. (HEABC) 

--- page 21 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 11
THREE YEAR FISCAL PLAN
and the Facilities Bargaining Association to bring eligible care-home operators into 
HEABC membership, ensuring workers are covered by an HEABC-negotiated collective 
agreement. Tis agreement supports over 5,000 workers, providing fair wages, benefits 
and protections, while strengthening care for seniors. Tis transition reinforces consistent 
provincial labour standards across the sector, strengthens the workforce and promotes 
high-quality and reliable care for seniors and people with complex health needs.
Budget 2026 also provides $35 million over three years to the Ministry of Housing and 
Municipal Affairs to support Independent Living BC. Tis funding will continue rental 
housing supports for low and moderate income seniors who require assistance to live 
independently.
Efficiency in the Healthcare System
Troughout the 2025/26 fiscal year, government has been engaged in a comprehensive 
expenditure management exercise with the goal of identifying opportunities to improve 
system efficiencies, reduce administrative costs, and prioritize funding to frontline 
services. 
As part of government’s review of health authorities, $60 million has already been 
identified in annual savings through the reduction of more than 1,100 existing or 
planned positions. Looking forward within the health sector, government has identified 
over $200 million in annual spending to be reinvested in core service areas. Had this 
work not been undertaken, an additional $780 million over three years would have been 
needed to support the province’s health care system. 
Securing Federal Partnerships for Health Care
Budget 2026 includes $2.2 billion, over three years, in targeted federal funding for health 
services. Tis includes $447 million under the Aging with Dignity agreement in support 
of seniors to help address complex medical conditions outside the hospital setting, 
improving the safety and quality of long-term care facilities and supporting the long-term 
care workforce. Te federal government will also provide an additional $653 million to 
fund expanded public coverage for diabetes and hormone replacement therapy. Finally, 
the Province is projecting to receive $1.1 billion over three years for the anticipated 
extension of the Working Together to Improve Health Care for Canadians agreement. 
Tis is in addition to federal funding received through the Canada Health Transfer.
7aEle 1.2.2  ,nYeVtPentV Ln the +ealth Care 6\VteP 
 millions



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CaseloaG anG 3rimary Care««««««««.........................«««

         

         

      

      
,n 9itro Fertili]ation«..........................................................................

           

           

           

         
CKief Scientific 2fficer 5ecommenGations«......................................

           

           

           

         
StrenJtKeninJ Seniors Care«............................................................

           

           

           

        
7Rtal «««...««««««««««««««««««««««
408
         
586
         
1775
      
2769
     
Efficiency in tKe +ealtK Care System..................................................

       

       

       

       
Table may not sum due to rounding
Includes allocations funded from the Contingencies Vote 
Efficiency funding represents amounts that have been reallocated to other items within the healthcare system, not reductions in 
funding

--- page 22 ---
THREE YEAR FISCAL PLAN
12 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Investments in Health Care
Budget 2026 affirms the Province’s commitment 
to prioritizing the health of British Columbians 
by investing to meet demand for health care 
services across the continuum of care. 
Investments will support connecting more 
residents to primary care providers and sustain 
supports for B.C.’s health care workforce. 
Funding will also support the opening of 
new and enhanced health facilities across the 
province and continue expansion of specialized 
mental health and addictions services.  
New and Enhanced Facilities
Budget 2026 will support the planning, 
development, and operations of new or 
renovated hospitals, long-term care homes, 
and cancer centres. Examples include the new 
St. Paul’s Hospital in Vancouver, the Royal 
Columbian Hospital redevelopment in New 
Westminster, and the Cowichan District 
Hospital replacement on Vancouver Island. 
Tese investments will expand access to modern, 
quality services and ensure the system remains 
responsive to population needs. Health sector 
infrastructure investments are further described 
on page 51.
Expanding Mental Health and Addictions 
Services 
Budget 2026 sustains funding to support 
the continued expansion of mental health 
and addictions services across the Province, 
including the Road to Recovery expansion, 
the development of new Foundry Centres, 
and the implementation of Integrated Child 
and Youth Teams.  
Since 2017, B.C. has added 829 new 
publicly-funded adult and youth withdrawal 
management, sobering and assessment, 
transition, treatment and supportive recovery 
beds. Budget 2026 also invests more than 
$131 million over three years to address the 
recommendations from the Chief Scientific 
Advisor for psychiatry, toxic drugs, and 
concurrent disorders. Tese investments will 
support the expansion of Assertive Community 
Treatment teams and increase the number of 
specialized treatment beds for involuntary care 
in Prince George, Maple Ridge and Surrey.
Improving System Access and Stability 
Government has taken steps to improve system 
access and stabilize the health sector — work 
that will continue over the next three years. 
Since 2023, more than 587,000 people 
have been newly attached to a family doctor 
or nurse practitioner. In 2025 alone, over 
4,200 people were newly attached per week. 
If this attachment rate continues, an additional 
650,000 people will be newly attached to 
a  family doctor or nurse practitioner over 
the next three years. 
In July 2025, the Province launched a publicly 
funded in vitro fertilization (IVF) program 
to support B.C. residents on their path to 
parenthood. As of December 2025, over 1,500 
individuals had funding approved for eligible 
IVF services, making IVF care more affordable 
and accessible for hopeful parents throughout 
B.C. 

--- page 23 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 13
THREE YEAR FISCAL PLAN
Budget 2026 sustains investments in B.C.’s 
Health Human Resource Strategy, continuing 
the significant progress made over the past 
several years to recruit, retain and train health 
care workers. 
Since 2017, B.C.’s healthcare workforce has 
grown across all practitioner types, exceeding 
B.C.’s average population growth: 
−
31.0 per cent increase in the physician 
workforce, including family physicians 
and specialists. 
−
23.1 per cent increase in the nursing 
workforce, representing growth in 
Registered Nurses, Licensed Practical 
Nurses, Registered Psychiatric nurses, 
and Nurse Practitioners. Tis includes 
over 4,700 nurses added since the 
announcement of minimum nurse to 
patient ratios in 2022.
−
33.3 per cent increase in allied health 
professionals, leading Canada in growth 
for pharmacists, occupational therapists, 
and physiotherapists. 
Following a targeted marketing campaign, 
B.C. has received thousands of applications 
from U.S. doctors, nurses and health 
workers — at  the last update, over 140 of them 
had already accepted job offers in the province, 
and the number of applications and accepted 
job offers continue to rise. 
B.C. is the first jurisdiction in Canada to roll 
out minimum nurse-to-patient ratios, with 
the goal of improving the delivery of patient 
care, providing better working conditions for 
nurses, and supporting a stronger health sector. 
More than 85 per cent of the first wave of ratios 
are expected to be activated in B.C. hospitals 
by March 31, 2026, and are already showing 
positive signs for recruitment and retention. 
Over the last three years since government 
announced the ratios, the number of nurses 
working in B.C. has increased by 5.9 per cent. 
31.0%
33.3%
23.1%
15.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2017
2018
2019
2020
2021
2022
2023
2024
Physician Workforce
Allied Health Workforce
Nursing Workforce
Population
Chart 1 – Expansion of the Health Care Workforce

--- page 24 ---
THREE YEAR FISCAL PLAN
14 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Sustainable Health Sector Spending
Government’s long-term fiscal outlook is 
challenged by growing demand for services, 
driven by an aging population with more 
complex needs and compounded by the 
continuous rise in physician compensation, 
which accounts for approximately 22 per cent 
of the health budget. Tese challenges require 
government to prioritize investments in 
much-needed services, while also driving system 
efficiencies to help realize savings and moderate 
cost growth. 
B.C. is prioritizing fiscal sustainability in the 
health care sector by: 
• Reducing administrative costs and 
redirecting savings to frontline services. 
−
In March 2025, government launched 
a health authority review to improve 
efficiencies and increase resources 
dedicated to patient care. 
−
Efforts to reduce administrative costs 
have already identified $60 million in 
annual savings through the reduction 
of more than 1,100 existing or planned 
positions. 
−
An additional $200 million in annual 
health care spending has been identified 
and reinvested in core service areas. 
• Finding efficiencies in how the system is run. 
−
In 2026/27, government will begin 
centralizing a range of non-clinical 
services to continue streamlining 
administrative costs by establishing a 
shared services organization mandated 
to curb the rate of growing health care 
costs.  
−
Tis will lead to the consolidation 
of all, or part of, legal, supply chain, 
finance, human resources, information 
management and information 
technology, data and analytics, 
health system planning and digital 
communications services across the 
health care system. 
• Getting better value for money, with a focus 
on patient outcomes. 
−
Government is optimizing how funding 
is allocated and managed across the 
health sector using data driven tools. 
• Driving innovation to improve productivity. 
−
B.C. is advancing a connected, safe, and 
trusted health system by empowering 
patients with secure access to their 
information, enabling virtual care and 
remote monitoring, and equipping 
providers with records across health 
authorities.  
−
B.C. is also working with the health 
authorities and care providers to 
responsibly deploy artificial intelligence 
(AI), enabling faster, more efficient 
service delivery and reducing the time 
that care providers need to spend on 
administrative tasks.
• Cutting down on private agency staffing 
costs. 
−
B.C. is continuing to work with the 
health authorities to reduce reliance on 
private staffing agencies (and premium 
labour costs) and improve workforce 
stability. 

--- page 25 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 15
THREE YEAR FISCAL PLAN
18962
19857
21266
24379
26166
28003
31742
34233
35017
36116
37240
38404
15,000
20,000
25,000
30,000
35,000
40,000
2017/18 
Actual
2018/19 
Actual
2019/20
Actual
2020/21
Actual
2021/22 
Actual
2022/23
Actual
2023/24
Actual
2024/25
Actual
2025/26 
Forecast
2026/27 
Budget
2027/28 
Plan
2028/29 
Plan
($ millions)
1Rte: Actual and forecast costs include expenses incurred through the Ministry of Health and the former Ministry of Mental 
Health and Addictions; Budget and Plan costs represent the Ministry of Health base budget
Chart 2 –  Investing in Health and Mental Health Care
Budget 2026 builds on significant health and mental health care investments since 2017/18 
as shown in Chart 2.

--- page 26 ---
THREE YEAR FISCAL PLAN
16 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Supporting a Strong K-12 Education System
Government has invested over $2.9 billion in new annual funding into B.C.’s education 
system since 2017/18, an increase of 42 per cent. Tis funding has helped to add over 
6,000 new teachers to the public school system. Continued investment in kindergarten 
to grade 12 students is key to securing our future. A strong and inclusive K-12 education 
system opens doors for all students for the rest of their lives. Despite a K-12 population 
that is forecasted to decline slightly over the fiscal plan period, Budget 2026 includes 
$634 million in new funding over three years, supporting teachers, student services, 
and inclusive learning recognizing the increased rates of inclusive education students 
enrolling in B.C.’s schools.
While K-12 enrolment figures overall show a slight decline, there continues to be fast 
growing communities where government is making investments. Renovations and new 
school builds continue across the province in communities like Surrey, Langley and 
Langford.
Increasing Student Supports 
Budget 2026 includes new funding of $167 million for the Classroom Enhancement 
Fund for additional teachers for all students, special education teachers, and teacher 
psychologists and counsellors. Tis also includes $6 million for First Nations Reciprocal 
Tuition related to students attending First Nations schools.
B.C. classrooms are seeing an increase in students with support needs. Since the 2002/03 
school year, the number of students in B.C. schools diagnosed with autism spectrum 
disorder has increased by 1,400 per cent. Recognizing the additional support children 
with an inclusive education designation require, government’s funding model allocates 
3.7 times the funding of a standard FTE to students with a level 2 inclusive education 
designation. Tis shift in student demographics is a contributor to overall K-12 funding 
growth despite a decline in overall enrolment numbers. 
Additionally, the Province’s capital plan includes $3.9 billion over the next three years to 
build, renovate and seismically upgrade schools and playgrounds throughout B.C. More 
details on education capital investments are on page 50 and in the topic box on page 66.
Child Care 
Budget 2026 invests $330 million over three years to continue government’s historic 
investments in child care. Funding will support B.C. families with affordable child care 
through programs like the Child Care Fee Reduction Initiative.
Since 2018, government’s investments in the ChildCareBC plan have made significant 
progress in expanding access and affordability. B.C.’s child care sector has grown by 
58,000 spaces across 1,450 facilities. Average daily fees for children 12 years and under 
have been significantly reduced, from $47 per day (or $940 per month) to $20 per day 
(or $400 per month). Median wages for early childhood educators have increased 
53 per cent, from $19 per hour to $29 per hour. On average, over 2,400 more children 
are receiving inclusive child care services each month, and government now funds over 
2,000 no-fee Aboriginal Head Start spaces.

--- page 27 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 17
THREE YEAR FISCAL PLAN
In addition, Budget 2026 includes $25 million in capital and operating over the next 
three years to continue and expand upon child care programs. In October 2025, 
government introduced legislation to expand child care options on school grounds, 
including before-and after-school care. Funding is being made available to School 
Districts for equipment and capital upgrades to support schools in providing more 
before and after school care.
Help for People Who Need Care and Support 
Children and Youth with Support Needs 
Budget 2026 makes a historic investment of $475 million in new funding over three years 
for children and youth with disabilities by providing families with direct funding for 
support services, and adding more service providers in their communities.
A modernized system will be delivered, building on what already works for families —
more flexible, more streamlined, more equitable, and better aligned with the diverse 
needs of children and youth. Budget 2026 invests in three priority areas.
First, families of children with the most significant and life altering disabilities will 
benefit from the new Children and Youth with Support Needs Benefit, providing 
flexible direct funding for approximately 12,000 families who require higher, sustained, 
individualized support.
Second, low- and middle-income families raising a child with a disability will benefit 
from the new Children and Youth Disability Supplement, offering up to $6,000 per year 
to ease financial pressures and help ensure children can access the supports they need. 
More information on the Children and Youth Disability Supplement is available in the 
tax measures section on page 82. 
Tird, all families will benefit from a more than 40 per cent expansion in 
community-based services, including increased behavioural and mental health supports, 
6-18 programming, and navigation services. 
Over 2026 and 2027, the ministry will phase out existing programs like the Autism 
Individualized Funding Program and replace it with new supports under the redesigned 
model.
7aEle 1.2.3 Better 6uppRrt IRr ChLlGren anG <Ruth ZLth 6uppRrt 1eeGV
 millions



7otal
Children and Youth with Support Needs Benefit…...........................................

          

        

        

        
Disability Supplement….................................................................................

             

        

        

        
New Community-Based Programming….........................................................

          

          

          

          
Existing Program Funding…............................................................................

          

       

       

      
7Rtal «««...«««««««««««««««««««««««
157
        
133
        
185
        
475
       
E[isting program funding includes amounts previously held in contingencies and direct funding being repurposed to support the 
redesigned program E[isting communitybased funding continues into future years

--- page 28 ---
THREE YEAR FISCAL PLAN
18 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Children and Youth in Care and Alternative Care
Children and youth in care caseload costs are another area of the provincial budget where 
incremental costs are driven by the increasing complexity of cases and higher needs per 
individual. Over the past 20 years, the number of children and youth in care has declined 
by nearly 50 per cent, while the overall cost to support children in care has increased. 
Budget 2026 provides $478 million over three years to support children in government 
care or who are placed with a family member or someone with an established relationship. 
Tis funding supports the foster care, Indigenous child and family service agencies, 
specialized homes and services, and the independent living program. Tese programs 
support approximately 12,000 children and youth who are unable to live with their 
parents. Over time, better care reduces intergenerational cycles of child protection 
involvement and lessens future demand on health, justice, housing, and social assistance 
systems, creating significant long-term savings.
Removing Barriers for Couples Receiving Disability Assistance
Budget 2026 invests $52 million to remove barriers for couples receiving disability 
assistance. Starting December 1, 2025, couples where both members receive disability 
assistance receive the same support allowance as they would if they were two single 
people. In addition, beginning January 1, 2026, couples where one partner has the 
Persons with Disabilities designation also benefit from an increased annual earnings 
exemption, allowing them to keep more of the money they earn.
More than 6,500 families will benefit from the change to equalize support rates and more 
than 4,300 families will benefit from the expanded earning exemption.
Income, Disability, and Supplementary Assistance 
Budget 2026 provides more than $121 million over three years to support increased 
demand for income, disability and supplementary assistance compared to the previous 
three-year fiscal plan.
Te forecast for income, disability and supplementary assistance is based on population 
growth for the approximately 269,000 people who receive assistance. Supplementary 
assistance includes the Senior’s Supplement, the Bus Pass and Transportation Supplement 
for persons with disabilities, supports such as the crisis supplement, counselling, school 
start up and health supplements for dental, diet and medical equipment and supplies.
Community Living BC
Community Living BC provides supports and services to nearly 32,000 adults with 
developmental disabilities, as well as individuals who have a diagnosis of Autism 
Spectrum Disorder or Fetal Alcohol Spectrum Disorder and who need support managing 
daily activities.
Budget 2026 provides additional funding of $252 million over three years to support 
growth in demand for clients served by Community Living BC.

--- page 29 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 19
THREE YEAR FISCAL PLAN
Investing in Economic Growth and Security
With continued uncertainty from U.S. tariff threats, British Columbians are increasingly 
concerned about economic sustainability and security. Government has been working to 
unlock major projects, create jobs, prepare and train a skilled workforce, support resource 
development, mitigate against the impacts of climate change, enable strong economic 
partnerships between First Nations and businesses, and invest in homes people can afford. 
Unlocking Federal and Private Sector Investments
Budget 2026 allocates $400 million in funding for the new British Columbia Strategic 
Investments Special Account. Funding will enable B.C. to work collaboratively with the 
Government of Canada as it invests billions of dollars to secure Canada’s sovereignty, 
along with the jobs and economic opportunities these projects will bring. Te account 
will be used to attract investments that build on B.C.’s strengths in clean energy, 
value-added forestry, manufacturing, responsible mining, life sciences, AI and quantum, 
maritime sector and aerospace, and clean technology. Government will be looking to 
build on its recent successes, including an investment of up to $41.5 million in the 
Integrated Marketplace Initiative, which is already accelerating innovation in B.C., 
and the Manufacturing Jobs Fund, which has committed nearly $153 million since 2023, 
leading to more than $1.1 billion in investment and creating and protecting more than 
4,800 jobs.
Growing a Skilled Workforce for the Future 
Released in November 2025, Look West: Jobs and Prosperity for a Stronger B.C. and 
Canada charts a path to deliver major projects, create good jobs and strengthen B.C. 
and Canada’s economic security in the face of economic threats. Budget 2026 includes 
$283 million in new funding over three years to support commitments set out in this 
targeted plan.
Budget 2026 provides $241 million over three years to double funding for 
SkilledTradesBC so people can secure family-supporting jobs created through major 
projects. In 2026/27, this funding will support the creation of 5,000 new trades training 
seats, including 1,000 delivered through the BC Building Trades.
Trough Budget 2026, $30 million will establish dedicated funding to train highly 
qualified professionals by adding specialized streams to existing programs, improving 
alliances between industry and post-secondary partners, and accelerating growth in 
technology-related degrees. Funding streams will support fields like engineering, geology, 
computer science, biology and aerospace. Investing in focused streams will enable 
government to quickly implement the additional training needed and get more trained 
workers into priority areas like critical minerals, marine, transportation and advanced 
technology. 
Budget 2026 also allocated $12 million over three years to enhance the B.C. Employer 
Training Grant, helping to double apprenticeship seats by 2028/29 from current levels.

--- page 30 ---
THREE YEAR FISCAL PLAN
20 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Te funding will address waitlists and increase per seat funding at certified training 
institutions, particularly in high-demand and priority trades. Tis initiative will expand 
Skilled Trades Certification, beginning with crane operators, to ensure more trades have 
clear, consistent pathways to certification. Tis investment strengthens the trades training 
system while building the capacity, flexibility, and sustainability needed to support good 
jobs for people and B.C.’s economy for years to come.
Permitting
Following a record-breaking year for exploration investment in B.C., the Province is 
building on recent progress in speeding up and streamlining permitting by investing over 
$40 million over three years to further strengthen permitting capacity across the natural 
resource and tourism sectors.
Tis investment supports government’s broader strategy to modernize permitting and 
regulatory frameworks by removing barriers, delays, and duplication for businesses.
Funding is intended to advance priority projects and create greater stability and certainty 
for major projects — helping attract investment and support good jobs for people.
Beginning April 1, 2026, exploration permits will be processed within 40-to-140 days, 
depending on complexity of the proposed activity and a new escalation process will be 
introduced for cases that go beyond the deadline.
Permitting improvements to date have resulted in 35 per cent faster timelines for major 
mines applications, 35 per cent more exploration permits issued in 2025 than in 2024, 
and a coordinated environmental assessment and permitting process.
Support for B.C.’s Forestry Sector
B.C.’s forestry sector continues to face significant pressures that affect its long-term 
sustainability and economic strength. Sustained international tariffs and reduced 
economic fibre supply are creating real challenges for industry, workers, and the 
communities that rely on forestry jobs.
To help address these impacts, the Province is taking action and making targeted 
investments that support the forestry sector today while building a more resilient future. 
Tis includes working to secure significant federal funding to support the softwood 
lumber sector in the face of U.S. tariffs. 
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94
          
121
        
283
       
Tables may not sum due to rounding

--- page 31 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 21
THREE YEAR FISCAL PLAN
In 2025/26, the Province is providing $50 million of new provincial and reallocated 
federal funding to support the forestry sector. Tese investments are designed to provide 
sector stability, protect jobs, and help communities adapt and thrive.
An immediate investment of $15 million in 2025/26 in key organizations will help to 
enhance industry stability. Tis includes $5 million for the BC First Nations Forestry 
Council, to continue delivering the Indigenous Forestry Scholarship program and 
advancing First Nations’ participation in the forest sector. Te Province is also providing 
$5 million to the Wildfire Reduction Equipment Support Trust to help eligible logging 
contractors to purchase specialized equipment needed to recover fibre that can be 
processed into marketable products. Finally, $5 million will be provided to the Forestry 
Service Providers Compensation Fund to provide relief to eligible forestry contractors 
who are not paid for their services in the event of a tenure holder’s insolvency. 
Te Province is also investing $15 million in 2025/26 to recapitalize the FireSmart 
Community Funding and Supports program, helping about 75 more local governments 
and First Nations strengthen wildfire resilience through training, equipment, bylaw 
updates, and home hardening measures. Tis funding also creates work for forestry 
consultants and contractors, supports fuel mitigation projects that keep forest sector staff 
and equipment working, and helps companies diversify beyond traditional harvesting. 
Community Forests and other tenure holders can access funding to protect their 
investments and enhance safety in high-risk communities, ensuring economic benefits 
continue to flow directly back into local communities.
B.C. is also reallocating $20 million in federal funding to the Northern Development 
Initiative Trust in 2025/26. Tese funds will support employers and workers affected by 
international tariffs, with dedicated streams for both the forestry and steel industries. 
Of this amount, more than $8 million comes directly from federal tariff revenues and is 
now being redistributed to provinces to help impacted industries. Tis support builds 
on existing services offered through WorkBC to ensure workers have access to the 
employment assistance they need.
To further support the forestry sector, government is introducing a temporary Stumpage 
Payment Deferral Program, which will support eligible tenure holders in British 
Columbia by providing immediate cash flow relief. Te deferral program will be offered 
on a voluntary basis and will be effective from January 1, 2026 to November 30, 2026. 
Tis initiative is designed to help stabilize the forest sector during current market 
challenges, ensuring the competitiveness and resilience of B.C.’s forestry industry.
Looking ahead, the Province will continue working with communities, First Nations, 
and industry to strengthen and modernize forestry management approaches to respond 
to changing economic and environmental conditions, unlock more fibre supply, 
and strengthen the sector’s long term competitiveness.
Community Disaster Resilience Investments
Te Province continues to support communities to prepare for and respond to the 
impacts of a changing climate by leveraging investments made to establish the Disaster 
Resilience and Innovation Fund in Budget 2023, as well as the Provincial Disaster 
Financial Assistance program.

--- page 32 ---
THREE YEAR FISCAL PLAN
22 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Where possible, the Province leverages co-investment opportunities for projects, drawing 
from federal programs such as the Disaster Financial Assistance Arrangement, as well 
as the over $336 million that has been provided by the Province to the Community 
Emergency Preparedness Fund since 2017.
Recent key infrastructure upgrade project investments include:
• $60 million was committed to the City of Merritt in 2024/25 to begin a 
multi-year project to relocate and rebuild two damaged dikes, which will result 
in better protection for the city following the significant impacts of flooding in 
November 2021. In 2025/26, a further $3 million was committed to begin planning 
construction of the next section of dike to help protect the Middlesboro area and 
downtown core from flooding.
• $10 million was committed to the Village of Hazelton in 2025/26 to enhance an 
existing dike along the Skeena River, including a new 1.2-kilometre dike section. 
Tis project will help protect critical village infrastructure, including historical 
structures, homes, businesses, utilities, and cultural landmarks.
• $4 million was committed to the City of Pitt Meadows for the Kennedy Drainage 
Pump Station upgrade to counter threats such as flood and sea-level rise, drought, 
and water scarcity. Tis project will increase the resilience of the City of Pitt Meadows 
and help protect people, businesses, farmers, and critical transportation networks 
from flooding.
Te Province will continue to make investments to support community resilience and 
mitigate the impact of a changing climate, using the existing $70 million allocated to the 
Disaster Resilience and Innovation Fund over the three-year fiscal plan. Since 2024/25, 
the Disaster Resilience and Innovation Fund has invested over $27 million into 57 projects 
for First Nations and local governments to enhance their capacity to withstand and adapt to 
natural and climate-driven hazards.
First Nations Equity Financing Program
Government has completed development of guiding policies and criteria and 
will formally launch the First Nations Equity Financing Program in spring 2026. 
Te program will support equity financing opportunities for First Nations to have 
meaningful participation in projects within British Columbia, where there is shared 
interest and readiness with the Province.
Trough use of the First Nations Equity Financing Special Account and partnerships 
with First Nations, businesses, lenders, and the federal government and its agencies, 
the program will help ensure that provincial equity loan guarantees and other tools are 
responsive to First Nation investment priorities. Tis will be driven by value for both 
First Nations and the Province and reinforced by robust financial due diligence while 
being sustainable and affordable within the overall provincial fiscal plan.
While the Province is currently engaged in early work for projects in the energy sector, 
it also anticipates receiving other shared interest project proposals of varying sizes and 
sectors, as they become ready. Te Province intends to establish a total cumulative loan 
guarantee limit of $1 billion for the special account, which will be reviewed annually.

--- page 33 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 23
THREE YEAR FISCAL PLAN
Investing in Homes for People
Investing in a healthy and sustainable housing market continues to be a priority for 
the Province. Since 2017, government has implemented significant policy changes and 
committed more than $19 billion in operating and capital to increase support and deliver 
homes people can afford.
Tese measures have delivered or are currently developing an estimated 95,000 homes. 
Budget 2026 continues to make significant investments in housing, including over 
$2 billion each year.
Housing measures are focused on middle income housing, affordable rentals, supportive 
housing, and streamlining approvals. Funding has supported construction, subsidies for 
non-profit housing operators, and rental supplements. Government has also unlocked 
more homes by streamlining permitting and zoning, setting new housing targets to 
accelerate construction in over thirty municipalities, and putting in place laws and taxes 
to combat speculation and turn the empty units into homes for people.
Specific measures include:
• Te launch of BC Builds in February 2024 to fast-track rental housing for 
middle-income households by leveraging public, community and non-profit owned 
and underused land and providing low-cost financing, grants, and streamlined 
approvals.
• Introduction of the Home Flipping Tax to discourage short-term property speculation 
and address inflated housing costs by taxing profits on homes sold within two years.
• Allowing small-scale, multi-unit housing that people can afford, including townhomes, 
duplexes and triplexes through zoning changes and proactive partnerships.
• Actions like increasing property transfer tax exemptions and providing protection 
periods to support first-time home buyers.
• Providing low-interest loans to colleges and universities to expand student housing.
• Introducing an annual tax credit of up to $400 per year for renters, offering 
income-tested relief to help offset the rising cost of renting in the province.
• Expansion and increase for the Rental Assistance Program (RAP) and Shelter Aid for 
Elderly Renters (SAFER) supplements. Te RAP income cap was increased to $60,000 
and the average benefit increased to approximately $700 per month. Senior renters 
saw SAFER supports increase as the income cap was raised to $40,000 and average 
monthly payments are now approximately $337.

--- page 34 ---
THREE YEAR FISCAL PLAN
24 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Trough Budget 2026, government is slowing the pace of new housing projects. 
Tis includes reallocating nearly $1.4 billion across the fiscal plan. Of this, government 
is reinvesting over $900 million to support demand for existing housing services 
and programs. Tis includes increased funding for non-profit housing operators, 
assisted-living supports for seniors and people with disabilities, and supporting 
thousands of new below-market homes through the Attainable Housing Initiative 
partnership with the Musqueam, Squamish and Tsleil-Waututh Nations. 
Budget 2026 investments in housing continue to be significant and are nearly five times 
higher than 2016, demonstrating a strong government commitment to creating healthy 
and sustainable housing options for people and communities.
Making Neighbourhoods and Communities Safer
Government is committed to fostering safe and strong communities by strengthening 
essential public safety and justice services. Budget 2026 invests $139 million over three 
years to provide more community-specific supports to respond to public safety concerns 
and help to build capacity to ensure timely access to justice and other public safety 
programs.
Access to justice supports in Budget 2026 includes funding for court operations, 
recruitment and retention of sheriffs, Crown counsel, the judiciary, legal aid, and the 
BC Prosecution Service.
Budget 2026 also provides $16 million over the next two years to establish the Chronic 
Property Offending Intervention Initiative (CPOII). This new program builds on the 
success and model of Repeat Violent Offending Intervention Initiative (ReVOII) to 
provide dedicated, coordinated response teams to address repeat property offending. 
It also continues support for the ReVOII and Special Investigation and Targeted 
Enforcement (SITE) programs. Together these programs aim to reduce crime rates 
attributable to repeat violent offending and property crime, improve information sharing, 
and provide better outcomes for individuals through improved connection to health, 
housing, and social supports. Each of these programs are supported through temporary 
funding pending the results of a program review following the completion of an initial 
pilot period.
The Province has been successful in securing support from the federal government for 
more police officers, increased RCMP helicopter support, and national coordination 
of efforts to combat extortion. The BC Extortion Task Force is a first of its kind in the 
country, bringing together municipal, provincial, and federal agencies to coordinate 
intelligence sharing and investigations. Government has also established a community 
advisory group on extortion to ensure there is strong communication between law 
enforcement and businesses and community members so people are heard, supported, 
and safe. Government continues to ensure that police have the resources necessary to 
investigate threats, support victims, and arrest those responsible.

--- page 35 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 25
THREE YEAR FISCAL PLAN
Since 2018, government has invested $2.2 million towards preventing and addressing 
sexualized violence in post-secondary communities. Through this funding, government 
launched an annual sexual violence awareness campaign to proactively prevent sexual 
violence within post-secondary environments by increasing awareness, shifting attitudes, 
and empowering safe bystander intervention.
Government is also taking steps to expand the Civil Forfeiture Office (CFO), fulfilling 
a recommendation from the Cullen Commission into money laundering. The expansion 
will allow the CFO to conduct its own investigations and proactively identify money 
laundering schemes or pursue high value assets, continuing to ensure people cannot 
profit from unlawful activity or use property to seriously harm others. The expansion 
will be funded through forfeited funds and is expected to generate net revenue for the 
Province. These revenues support policing initiatives and the victims of crime.
Table 125   MaNing 1eigKbourKoods and Communities Safer
($ millions)
2026/27
2027/28
2028/29
Total
Access to Justice….............................................................................
23
          
25
          
25
          
73
          
Repeat Violent Offending Intervention Initiative…………………….....
13
          
13
          
-
             
26
          
Chronic Property Offending Intervention Initiative ………………………
8
            
8
            
-
             
16
          
Special Investigation and Targeted Enforcement programs…...........
7
            
7
            
-
             
14
          
Community Safety and Targeted Enforcement…...............................
5
            
5
            
-
             
10
         
Total ………...…………………………………………………………
56
          
58
          
25
          
139
       
Table may not sum due to rounding
Includes allocations funded from the Contingencies Vote 

--- page 36 ---
THREE YEAR FISCAL PLAN
26 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
BC Public Service
Te projection for full-time equivalent (FTE) staff utilization for government ministries 
is 37,500 in 2025/26. Tis reflects the estimated impact of hiring restrictions and job 
action.
Trough Budget 2026 and as part of expenditure management, government will reduce 
the size of the BC Public Service through continued hiring restrictions, attrition, and 
where appropriate, reviewing the possibility of offering early retirement incentives. 
As a result, FTE projections (adjusted for impacts of job action) decline by 2,500 
from 2025/26 to 2028/29.
Further details can be found in the topic box on page 27 and Table A13.
BC Public Sector Compensation
Tere are more than 598,000 people in British Columbia’s public sector working in the 
core BC Public Service, at Crown corporations and agencies, in health and community 
social services, K-12 public education and post-secondary institutions and research 
universities. Of those people, approximately 456,000 are unionized employees paid 
under collective agreements or professionals paid through negotiated compensation 
agreements. 
Te government and provincial public sector employers spend about $55.7 billion on 
total compensation. An increase of 1 per cent in total compensation for all B.C. public 
sector employees is estimated to cost $557 million. For unionized employees and others 
with negotiated agreements, a 1 per cent increase would cost over $441 million.
Fiscal year 2025/26 marked the beginning of a new round of collective bargaining 
between provincial public sector employers and unionized employees under the Balanced 
Measures Mandate. Budget 2026 makes provision for collective agreements reached under 
the new mandate. Funding is allocated in the Contingencies Vote to prepare for the 
ratification of new collective agreements throughout the fiscal plan period.

--- page 37 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 27
THREE YEAR FISCAL PLAN
([SenditXre 0anagement and (ႈciency 5evieZ
As part of Budget 2025, government launched 
an expenditure management and efficiency 
review to help address the Province’s 
challenging financial situation, while protecting 
the core services that British Columbians rely 
on. Tis work included initial savings targets, 
expenditure controls, and program reviews to 
limit administrative and discretionary spending, 
and streamline government operations.
Trough Budget 2026, government will 
continue this work with an added focus on 
opportunities to reduce the size of the public 
sector to a more sustainable level. Tis includes 
continuing to actively manage the B.C. Public 
Service workforce to support effective use of 
skills and expertise, enable lateral movement, 
and ensure resources are directed to areas of 
greatest need.
By making careful choices and reinvesting 
savings into protecting core services, new 
funding in Budget 2026 is at levels more 
comparable to pre-pandemic Budget 2020.
Administrative and operating savings
Government has exceeded its initial Budget 
2025 savings targets for 2025/26, 2026/27, 
and 2027/28. As of the third quarter of 
2025/26, ministries have forecast savings of 
over $400 million in 2025/26, and Budget 2026
includes estimated savings of $950 million 
in 2026/27, $1.2 billion in 2027/28, and 
$1.3 billion in 2028/29 and ongoing.
Savings in 2025/26 primarily consist of staffing 
adjustments (leaving non-critical positions 
vacant, consolidating positions), hiring 
restrictions, and reduced discretionary spending 
(e.g., travel, office and business expenses, 
conferences and events).
Measures with savings in 2026/27 and ongoing 
have been reflected through Budget 2026, 
impacting ministry base budgets and overall 
Contingencies Vote levels. Tis includes 
ongoing implementation of some of the 
measures discussed above, including reduced 
public service staffing levels due to further 
hiring restrictions, recalibrating government 
programs, and streamlining program delivery to 
reduce duplication and administrative costs.
Effective April 1, 2028, the B.C. Training and 
Education Savings Grant will be discontinued. 
Tis program, which provided $1,200 to 
eligible children’s Registered Education Savings 
Plans, had an uptake of less than 50 per cent 
and disproportionately benefited families from 
areas with higher average household incomes. 
Discontinuing the program is expected to save 
$30 million annually starting in 2028/29. 
Table 1 - Expenditure Management and :orNforce 5eduction Targets
($ millions)
2026/27
2027/28
2028/29
Total
Expenditure management savings ……………………........................
950
         
1,240
      
1,320
      
3,510
      
:orNforce reduction targets …...........................................................
200
         
800
         
1,850
      
2,850
     
Total estimated savings ….........................................................
1,150
      
2,040
      
3,170
      
6,360
      
Funding reinvested in core services…................................................
(525)
       
(663)
       
(736)
       
(1,924)
   
Total savings, net of reinvestments ………...……………………
625
         
1,377
      
2,434
      
4,436
     

--- page 38 ---
THREE YEAR FISCAL PLAN
28 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
However, funding for the Learning Fund for 
Young Adults, which provides $1,500 for young 
adults who have experience in government care, 
will be maintained.
In some cases, savings have been reinvested to 
address other pressures or priorities. Within 
the health sector, government has identified 
over $260 million in annual spending to be 
reinvested in higher priority core service areas. 
Within the natural resources sector, over 
$34 million in savings from non-essential 
spending reductions have been reinvested 
toward enhanced permitting activities, almost 
completely offsetting the incremental increase.
Similarly, Budget 2026 re-paces housing 
construction investments compared to recent 
historic levels. Tese measures will realize 
savings to government’s bottom line but also 
allow government to reinvest some of these 
savings to address service delivery pressures. 
Reinvestments in housing include increased 
funding for non-profit housing operators facing 
higher costs and supporting new homes coming 
online, additional assisted-living support 
services for seniors and people with disabilities, 
and supporting thousands of new below-market 
homes through the Attainable Housing 
Initiative partnership with the Musqueam, 
Squamish and Tsleil-Waututh Nations.
Streamlining government operations
Ministries also reviewed their management 
and organizational structures, with a focus on 
mobilizing talent more effectively. Tis work 
has resulted in significant organizational 
changes, including the launch of Connected 
Services BC, the integration of strategic human 
resource services, and restructuring within 
several ministries, including the Ministry of 
Health, the Ministry of Education and Child 
Care, and the Ministry of Water, Land and 
Resource Stewardship.
Connected Services BC
Connected Services BC is a centralized 
organization implementing a new user-focused 
digital model. Te goal for Connected Services 
BC is that by 2030, there will be one front 
door for people and businesses interacting with 
government online, creating a connected service 
experience that allows for whole-of-government 
coordination and reduces delays and 
duplication so that users:
• only need to enter information once, 
with systems that share data securely and 
appropriately across programs;
• find and access services more easily, with 
fewer steps and clearer information; and
• benefit from services that are reliable, 
connected, and designed around their needs.
Connected Services BC will bring together 
people, resources, and technology to improve 
collaboration, reduce duplication, and 
support innovation across government. Tis is 
anticipated to achieve $35 million in annual 
savings starting in 2026/27 through efficiency, 
optimization and integrated service delivery.
Tis transformation is part of government’s 
broader modernization efforts, ensuring public 
services are more connected, responsive and 
centred on the needs of people in B.C.
BC Public Service Human Resource (HR) 
Integration
Te BC Public Service Agency (PSA) provides 
leadership and oversight for human resources 
across the BC Public Service, ensuring a 
consistent, equitable, and people-centred 
experience for all employees. Integration of all 
strategic HR functions across the BC Public 
Service, from a model where the strategic HR 
function resides inside ministries to having 
an integrated strategic HR function in the 
PSA, reduces duplication, drives efficiency, 
and delivers consistent, high quality workforce 

--- page 39 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 29
THREE YEAR FISCAL PLAN
solutions across ministries. An additional 
benefit of integration is accelerating equity, 
diversity, and inclusion (EDI) by centralizing 
expertise and consistent application.
Tis change is anticipated to achieve 
incremental savings of $8 million by 2027/28 
through role realignment and process 
optimization, and further enables ministries 
to focus on delivering essential programs and 
services to British Columbians effectively and 
efficiently.
Health Authority Review
Government is currently completing a health 
authority review to improve efficiency and 
increase resources dedicated to patient care. 
Efforts to reduce administrative costs have 
already identified $60 million in savings 
year-over-year through the reduction of more 
than 1,100 positions.
In spring 2026, government will begin 
centralizing a range of non-clinical services 
to continue streamlining administrative costs 
by establishing a shared services organization 
mandated to curb the rate of growing 
healthcare costs. Tis will include all or part of 
legal, supply chain, finance, human resources, 
information management and information 
technology, data and analytics, health system 
planning, and digital communications services 
across the healthcare system. Te organization 
will redesign the shared services model, with 
a view to streamlining processes, centralizing 
to realize economies of scale, reducing total 
headcount, and eliminating duplicative 
positions.
Te transition to the new model will occur over 
a defined and sequenced timeline. Te specific 
implementation details are currently being 
finalized and will be shared as they are confirmed.
Post-Secondary System Review
In fall 2025, the Province launched an 
independent review of British Columbia’s 
public post-secondary education system to 
ensure it remains sustainable, accessible, and 
aligned with British Columbia’s workforce 
needs and economic priorities. Te review is 
intended to identify strategies to stabilize the 
finances and operations of the sector in the 
short-term and strengthen its resilience over 
the long-term. 
Public post-secondary institutions are facing 
significant financial pressure driven by federal 
reductions to international student study 
permits, declining domestic enrolment, and 
rising costs associated with global inflation. 
Te review takes a holistic and integrated 
approach, examining all aspects of institutional 
operations and administration, as well as the 
structure and governance of the sector as a whole.
In response to current pressures, institutions 
have already taken steps to reduce expenditures, 
including administrative budget reductions, 
hiring freezes, and program changes.
Right-sizing the public sector
Over the past 10 years, public sector job growth 
has increased by over forty per cent, including 
more than 80,000 FTEs since 2020. Tis has 
significantly outpaced economic growth and 
general population growth. Much of this growth 
can be attributed to improvements in services 
and delivering on government commitments in 
sectors such as health care and education (e.g., 
hiring more teachers, doctors, nurses and health 
science professionals). Unlike the federal public 
sector, a greater proportion of workers in B.C.’s 
public sector provide direct frontline services.
In tandem with ongoing efforts to restructure 
operations and consolidate internal services, 
government is pursuing attrition and workforce 
adjustments to return the size of the public 
sector to a more sustainable level and prevent 
cuts to core services. Government is committed 

--- page 40 ---
THREE YEAR FISCAL PLAN
30 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
to reducing approximately 15,000 public sector 
FTEs by the end of 2028/29, which represents 
3.4 per cent of the public sector workforce.
Tis includes both the BC Public Service 
(ministries and offices) and the broader public 
sector, which includes Crown corporations, 
health authorities, school districts, research 
and teaching universities, community social 
services, and post-secondary colleges and 
institutions.
For the BC Public Service, government is 
planning to reduce total FTE utilization by 
2,500 FTEs over the next three years. Te Public 
Service Agency is undertaking work to support 
the ongoing optimization of management 
and organizational structures across the BC 
Public Service. Tis includes regular reviews to 
ensure structures remain efficient, sustainable, 
and aligned with contemporary public sector 
practices.
Transitions such as this can be difficult and 
government is committed to minimizing 
hardship for employees, while also protecting 
diversity and ensuring a strong, renewed 
cohort of public servants. To the greatest extent 
possible, these reductions will be achieved 
through attrition and voluntary departures. 
However, additional measures, such as early 
retirement and voluntary severance incentives 
may be necessary to help support the transition 
to a leaner core public service. Government will 
provide an update on its progress towards these 
goals through the quarterly financial reports.
Broader public sector
Te path to ensure sustainability of public 
services and programs must include the active 
involvement of the broader provincial public 
sector. Tis year, government will work with its 
public sector partners to develop expenditure 
management plans and targets across these 
sectors.
Government recognizes that different sectors 
will have different capacities to adapt to a 
leaner workforce and some sectors must 
continue hiring into critical frontline positions, 
particularly in the health and K-12 sectors.
Each ministry will engage in expenditure and 
program reviews with their respective sectors 
to ensure all provincially-funded services 
remain relevant, efficient, and sustainable. 
It is expected that our public sector employers 
will need to deploy similar strategies such as 
restricted hiring, office space consolidation, 
and reductions in administrative and overhead 
costs. Similarly, to the greatest degree possible, 
the aim will be to achieve any workforce 
adjustments through attrition and voluntary 
departures. Where it is deemed necessary, 
government will work with public sector 
partners to explore the potential use of 
voluntary retirement and severance incentives.
As the overall size of the public sector adjusts, 
so too, must its leadership. In the coming 
months, government will be developing specific 
targets to reduce the number of executive 
positions, with a focus on Crown corporations 
and the health sector.
Since launching its expenditure management 
review, government has implemented controls 
to limit expenses on management and other 
consulting services within the BC Public 
Service. Government will work to further 
create efficiencies across the broader public 
sector, reducing expenditure on non-essential 
consulting services by more than double the 
per cent reduction in size of the public sector 
workforce. Tis will further help prevent cuts 
to core services while reorganizing the public 
sector to be more accountable and better 
adapted to respond to the needs of British 
Columbians.
Tese expenditure and program reviews will 
guide the development of sector-specific targets 
for the broader public sector and government 
will provide updates on its progress to setting 
and achieving these goals through the quarterly 
financial reports.

--- page 41 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 31
THREE YEAR FISCAL PLAN
/ooN :est -obs and ProsSerity Ior a 6trong %& and &anada
Look West: Jobs and Prosperity for a Stronger 
B.C. and Canada (Look West) is the Province 
of British Columbia’s new long-term economic 
strategy designed to strengthen the provincial 
and national economies over the next decade. 
Developed in response to shifting global 
markets, U.S. tariff pressures, and the need 
for greater economic resilience, the strategy 
outlines a plan to grow and strengthen key 
sectors, accelerate major projects, create new 
jobs and opportunities, expand skills training, 
diversify markets, and position B.C. as the 
economic engine of Canada. Te strategy 
leverages B.C.’s strengths including its prime 
geographic location, natural resources, 
strong partnerships with First Nations, 
and an innovative and diverse workforce to 
support nation-building projects and attract 
investments to build a stronger province. 
A Vision for Growth and Prosperity
Te strategy sets an ambitious goal to secure 
$200 billion in private-sector investment over 
the next decade, ensuring British Columbia is 
at the forefront of delivering nation-building 
projects. It positions the province as a key 
contributor to national sovereignty, economic 
security, and clean-energy transformation, while 
bringing good jobs and economic opportunities 
to B.C. communities. By diversifying markets 
and reducing reliance on the U.S., the Look 
West strategy aims to create long-term 
economic stability while seeking new global 
partnerships.
Tree Core Priorities
Te strategy is structured around three pillars:
1. Building on B.C.’s Strengths: Supporting 
Workers and Communities
Look West charts a path to deliver major 
projects, create good jobs and strengthen B.C. 
and Canada’s economic security in the face 
of economic threats. Budget 2026 includes 
$283 million in new funding over three years 
to support the commitments set out in this 
targeted plan. 
Of this, $241 million over three years will 
double funding for SkilledTradesBC. Tis 
investment follows a deliberate, phased 
approach by first stabilizing and modernizing 
the system, then expanding capacity in a way 
that is sustainable, responsive, and aligned 
with labour-market needs. Tis funding will 
address waitlists and increase per seat funding 
at certified training institutions, particularly in 
high-demand and priority trades. Tis initiative 
will expand Skilled Trades Certification, 
beginning with crane operators, to ensure 
more trades have clear, consistent pathways 
to certification. Tis investment strengthens 
the trades training system while building the 
capacity, flexibility, and sustainability needed to 
support B.C.’s economy for years to come.
Funding of $30 million over three years 
will establish dedicated funding to train 
highly qualified professionals by adding 
specialized streams to existing programs, 
improving alliances between industry and 
post-secondary partners, and accelerating 
growth in technology-related degrees. Funding 
streams will support fields like engineering, 
geology, computer science, biology and 

--- page 42 ---
THREE YEAR FISCAL PLAN
32 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
aerospace. Investing in focused streams will 
enable government to quickly implement 
the additional training needed and get more 
trained workers into priority areas (like critical 
minerals, marine, transportation and advanced 
technology).
$12 million over three years will enhance the 
employer training grant, helping to double 
apprenticeship seats by 2028/29 from current 
levels.
2. Generating Growth Trough Major 
Projects
Look West emphasizes the need to accelerate 
major projects, including clean-energy 
investments, infrastructure expansion, and 
industrial development. Te strategy seeks a 
50 per cent reduction in permitting times, 
improving predictability for investors and 
unlocking faster economic growth.
Tis government is growing B.C.’s 
economy through supporting generational, 
nation-building major projects that are 
intended to diversify B.C.’s economy, create 
good jobs and strengthen the province. 
Currently, B.C. has almost half of the major 
projects designated as Projects of National 
Significance by the federal Major Projects 
office, including:
• LNG Canada Phase 2: this enhancement to 
the LNG Canada facility will make it the 
second-largest LNG facility globally, with 
significant economic and environmental 
benefits. 
• Red Chris Mine Expansion: managed in 
partnership with the Tahltan First Nation, 
the proposed expansion of the Red Chris 
Mine will significantly increase production 
of gold and copper, critical minerals in high 
demand around the world, while creating 
1,800 jobs.  
• North Coast Transmission Line: co-owned 
with First Nations, it will deliver B.C.’s 
renewable energy to the North Coast 
communities and new industrial areas, 
supporting growth in mining, LNG, and 
clean technology, and creating 9,700 direct 
full-time jobs. 
• Ksi Lisims LNG: a proposed floating LNG 
facility, led by Nisga’a Nation, is expected 
to create 800 jobs during construction and 
more than 200 jobs ongoing at the site.
In June 2025, legislation was brought into force 
that expanded the authority of the BC Energy 
Regulator to include renewable energy projects, 
creating a single window approval for permits 
related to designated projects, including the 
North Coast Transmission Line and nine wind 
projects. It streamlines the permitting process 
by eliminating cross-ministry and agency 
permitting, while ensuring environmental 
standards are upheld.
Recent work by the Environmental Assessment 
Office has demonstrated government’s 
commitment to coordinating complex decisions 
and reducing unnecessary steps and procedural 
work. By integrating certificate amendments 
with ministry permitting reviews, more than 
a year has been shaved off the typical review 
timelines for complex mining amendment 
decisions, while ensuring that environmental 
protections are maintained and consultation 
obligations are met. 
Table 1 SNilleG :orNIorce ,nvestPents 
($ millions)
2026/27
2027/28
2028/29
Total
SkilledTradesBC….............................
54
          
80
          
107
        
241
        
Highly Qualified Professionals…........
10
          
10
          
10
          
30
          
Employer Training Grant…................
4
            
4
            
4
            
12
         
Total ………...………………………
68
          

          
121
        
283
       
Tables may not sum due to rounding

--- page 43 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 33
THREE YEAR FISCAL PLAN
Building on the past three years of progress 
in speeding up and streamlining permitting, 
Budget 2026 invests more than $40 million 
over three years to provide stable, ongoing 
funding that strengthens permitting capacity 
across the natural resource and tourism sectors. 
Tis investment supports government’s broader 
strategy to modernize permitting and regulatory 
frameworks by removing barriers, delays, and 
duplication for businesses. Funding supports 
multiple ministries to improve permitting 
efficiency, advance priority projects, and 
create greater stability and certainty for major 
projects, helping attract investment and support 
good jobs for people.
3. Moving B.C. Forward: Diversifying 
Markets and Growing Key Sectors
B.C. is Canada’s gateway to the Pacific, with the 
ports of Vancouver and Prince Rupert serving 
as the primary economic corridor for trade 
diversification with Asia and other markets. 
With the Look West, the Province is building 
pathways to explore new markets, grow B.C.’s 
presence nationally and globally, and strengthen 
the province’s trade infrastructure to get more 
goods to the global market and reduce reliance 
on the U.S.
A core focus of the strategy is accelerating 
growth in high-potential sectors, including 
critical minerals, clean energy, technology, 
life sciences, construction innovation, marine, 
aerospace, and defence.
Te strategy commits to reshaping construction 
industry by scaling up factory-built wood-based 
solutions to unlock new growth and trade 
opportunities, create good jobs and set the 
national standard for speed and quality. B.C. 
provided Western Forest Products’ Chemainus 
Value Added Division with up to $7.5 million 
to add two new continuous dry kilns to its 
manufacturing operations. Tis investment 
supports the company to expand high-value 
applications for second-growth western 
hemlock, including in future mass-timber 
inputs. It also increases the stability of its 
operation and harvesting operations on 
Vancouver Island.
Enhancing B.C.’s thriving life sciences and 
biomanufacturing sector is a significant part of 
Look West. Te Province provided $23.8 million 
as part of a $200 million partnership with the 
Government of Canada and the private sector 
toward the expansion of Aspect Biosystems 
in Vancouver. Tis investment is creating 
more than 200 jobs and will advance the 
development of cutting-edge bioprinted tissue 
therapeutics for people in B.C. and around 
the globe. 
Building on the strength of success stories such 
as Seaspan, Babcock Canada, OSI Maritime, 
and Titan Boats, the strategy seeks to expand 
and optimize B.C.’s maritime sector. 
To that end, B.C. invested $25 million to 
modernize and expand B.C.’s maritime sector, 
as part of the B.C. Maritime Industries Strategy, 
which aims to build a more competitive, 
innovative, and low-carbon marine sector.
Te strategy is also expanding the province’s 
aerospace capacity for successful national 
and international defence contracts. B.C. 
provided COTA Aviation Ltd. (Parksville) with 
$2.7 million to increase production of dual-use 
(commercial and military) aircraft components, 
strengthening COTA’s position in B.C.’s and 
Canada’s aerospace industry while creating 
22 skilled jobs.

--- page 44 ---
THREE YEAR FISCAL PLAN
34 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Budget 2026 allocates $400 million in funding 
for the new British Columbia Strategic 
Investments Special Account. Tis includes 
introducing new financial tools that will allow 
the Province to directly participate in the 
revenue growth of B.C. businesses through 
direct investments that include equity loans 
and other interests, as part of government’s 
support for private sector growth and good 
jobs for British Columbians. 
Funding will enable B.C. to work 
collaboratively with the Government of 
Canada as it invests billions of dollars to 
secure Canada’s sovereignty, along with 
the jobs and economic opportunities these 
projects will bring. Te account will be 
used to attract investments that build on 
B.C.’s strengths in clean energy, value-added 
forestry, manufacturing, responsible mining, 
life sciences, AI and quantum, maritime 
sector and aerospace, and clean technology. 
Government will be looking to build on its 
recent successes, including an investment of up 
to $41.5 million in the Integrated Marketplace 
Initiative, and the Manufacturing Jobs Fund 
which has committed nearly $153 million since 
2023, leading to more than $1.1 billion in 
investments and creating and protecting more 
than 4,800 jobs.
Te Integrated Marketplace helps B.C. 
companies build, test and prove how well their 
products work.  It is a key tool that B.C. is 
using to accelerate exports, diversify markets 
and help B.C. companies make sales that help 
them grow, scale and mitigate the impacts 
of U.S. tariffs. For example, a project with 
Misty West, in partnership with Vancouver 
International Airport (YVR), is deploying an 
AI-enabled vision system to collect continuous 
and accurate traffic and emissions data at YVR. 
Te project serves as a foundation for 
supporting the Province’s goal in Look West to 
double exports while also demonstrating dual 
use technologies that can support Canada’s 
defence and sovereignty. 
Lifting Productivity and Innovation 
Budget 2026 includes tax measures that support 
a more innovative and productive B.C.
New Manufacturing and Processing Investment 
Tax Credit
B.C.’s manufacturing sector is one of the 
province’s largest economic sectors, producing 
a diversity of products from chemicals and 
minerals to consumer products and industrial 
equipment. Tese businesses can become more 
productive when they invest in new equipment 
and machinery. To support these investments, 
B.C. will be introducing a new temporary 
manufacturing and processing investment tax 
credit for the manufacturing sector. Te new 
program will provide a 15 per cent refundable 
tax credit for qualifying corporations investing 
in buildings and machinery and equipment 
used in manufacturing and processing.
B.C. Patent Box for Life Sciences
Patent boxes are a way governments can 
encourage innovation by providing a tax 
incentive on income earned from intellectual 
property. In 2026, the Province will engage 
with stakeholders and the Government of 
Canada to explore whether adopting a patent 
box regime could support the growth of B.C.’s 
life sciences sector, and whether the tax system 
can help encourage the commercialization of 
intellectual property in the province.

--- page 45 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 35
THREE YEAR FISCAL PLAN
“Life sciences” refers to fields that involve the 
scientific study of living organisms. British 
Columbia’s life sciences sector includes contract 
research firms, testing and medical labs, 
and companies that develop, produce or sell 
medical devices, diagnostics, pharmaceuticals, 
radiopharmaceuticals, and other reagents. 
Te sector is a driver of economic growth, 
innovation, and healthcare advancement for 
the Province. 
B.C. Scientific Research and Experimental 
Development (B.C. SRED) Tax Credit
Te B.C. SRED tax credit incentivizes 
corporations to invest in research and 
development, driving more innovation and 
increased productivity in British Columbia. 
In particular, the refundable tax credit portion 
of the program for small and medium-sized 
Canadian businesses helps these businesses 
through liquidity issues before the end product 
has been commercialized and the corporation is 
profitable. In effect, government is partnering 
with business to shoulder a portion of the risk 
associated with these investments, recognizing 
that all British Columbians benefit when new 
ideas are explored, developed and perfected 
through private sector investment. To give 
businesses certainty when making these 
investments, Budget 2026 removes the tax 
credit’s sunset date.
Budget 2026 also confirms that the Province 
will align the B.C. SRED tax credit with 
changes to the federal program that were 
announced in the federal government’s 2024 
federal Fall Economic Statement and 2025 
federal Budget. 
Increasing the thresholds for refundable credits 
and expanding access to the credit for eligible 
Canadian public corporations will help small 
and medium-sized corporations scale up in 
British Columbia. Restoring eligibility of 
capital expenditures will support long-term 
capital investment. See page 82 for further 
details.
Small Business Venture Capital Program
Te Small Business Venture Capital Program 
offers tax credits to investors to encourage 
them to make equity capital investments in 
B.C.-based small businesses. Tis helps to 
keep investments local and supports businesses 
to scale and grow the various supply chain, 
technology and advanced manufacturing 
businesses in B.C.  
A Strategy Built on Partnership, Innovation, 
and Shared Prosperity
Look West emphasizes the importance of 
collaboration across sectors. Partnerships 
with First Nations are central to delivering 
major projects that support reconciliation, 
economic development, and shared prosperity. 
Collaboration with industry is also essential 
to building competitive supply chains and 
ensuring regulatory changes meet the needs 
of businesses, such as reducing permitting 
times, growing the workforce, and diversifying 
markets.
Conclusion
Look West sets out a bold, forward-looking 
roadmap for economic resilience and 
shared prosperity. By investing in people, 
accelerating major projects, and strengthening 
high-potential sectors, the strategy positions 
British Columbia as a leader in national 
economic growth. Tese actions support 
B.C.’s goal of becoming the economic engine 
of Canada — unlocking new opportunities, 
delivering good-paying jobs, and ensuring 
long-term stability for communities across the 
province.

--- page 46 ---
THREE YEAR FISCAL PLAN
36 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Spending Recovered from Third Parties
Over the three-year fiscal plan period, government is expected to incur $18.1 billion in 
program spending that will be recovered from external parties.
A total of $8.2 billion, over three years, will be transferred from the federal government 
to fund various programs, such as the Canada-Wide Early Learning and Child Care
Agreement, the Labour Market Development Agreement, health, public transit and other 
social programs.
Over the fiscal plan, an estimated $4.4 billion in interest payments will be recovered from 
commercial Crown corporations, through the Fiscal Agency Loan Program and from 
sinking-fund investment returns.
Various recovery sources, primarily other jurisdictions, other levels of government, 
agencies, and fees and licenses, support $5.5 billion in government spending. Expenses 
that relate to these recoveries include health care, PharmaCare, transportation projects, 
and grants to various community organizations and costs of employee health benefits 
collected from participating government agencies.
Program spending from recoveries has no net impact to the government’s fiscal plan as 
these expenses are offset by the related recoveries that are reported as revenue.
Transfers to Service Delivery Agencies
Approximately 66 per cent of ministry spending takes the form of transfers (both 
operating and capital funding) to service delivery agencies for the provision of services 
on behalf of government. Tese transfers will total $159.1 billion over the three-year 
fiscal plan period and will support education, health care, social services, housing, 
and transportation programs delivered by the agencies. Tese service delivery agencies 
include the SUCH sector (schools, universities, colleges and health organizations), 
Community Living BC, BC Housing Management Commission, BC Transit, and the 
BC Transportation Financing Authority.
Service Delivery Agency Spending
Service delivery agency spending is projected to increase from $58.1 billion in 2025/26 
to $61.5 billion by 2028/29, an increase of $3.4 billion. Actual spending of agencies may 
vary as they may be allocated additional funding during the year from ministries or from 
the Contingencies Vote.
School district spending is projected to increase from $9.5 billion in 2025/26 to 
$9.7 billion in 2028/29, an increase of $181 million, primarily to support the growth in 
public school funding, particularly for inclusive education designations.
Post-secondary institution expenditures are projected to rise from $9.1 billion in 2025/26 
to $9.5 billion by 2028/29, an increase of $394 million. Tis increase is primarily 
driven by amortization and operating costs associated with new major infrastructure 
initiatives, including student housing projects, the Simon Fraser University medical 
school, and impacts of general inflation on operating costs. A secondary contributor 
is salary expenses; however, the overall increase in this area remains relatively modest 
due to mitigation measures implemented in response to declining international student 
enrolment.

--- page 47 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 37
THREE YEAR FISCAL PLAN
Health authority and hospital society spending is projected to increase from $30.6 billion 
in 2025/26 to $32.8 billion in 2028/29, an increase of $2.2 billion over the fiscal plan 
period. Tis increased spending will support improved health system capacity, the 
growing demand for health services, enhancements to long-term care quality, recruitment 
and the staffing and operating costs required to meet projected service volume growth in 
healthcare services delivered across these organizations. 
Projected spending by other service delivery agencies is expected to increase from 
$9.0 billion in 2025/26 to $9.5 billion in 2028/29, an increase of $566 million. 
Tis increase is primarily due to higher spending by the BC Transportation Financing 
Authority to support services in the transportation sector.
For a presentation of the government’s consolidated spending in various sectors, 
please see Table A11 Expense by Function. Te expense by function table combines 
the spending by ministries and service delivery agencies into sectors such as health, 
education, social services, and transportation.

--- page 48 ---
THREE YEAR FISCAL PLAN
38 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table 1.3   Expense by Ministry, Program and Agency
($ millions)
Updated
Forecast 
2025/26 1
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Office of the Premier ………………………………………………………………
18
           
15
           
15
           
15
           
Agriculture and Food ………………………………………………………………
151
         
135
         
130
         
130
         
Attorney General ..........................................................................................
872
         
897
         
899
         
899
         
Children and Family Development ………………………………………………
2,400
      
2,712
      
2,594
      
2,599
      
Citizens' Services .........................................................................................
759
         
741
         
735
         
715
         
Education and Child Care…………………………………………………………
9,779
      
10,069
    
10,136
    
10,126
    
Emergency Management and Climate Readiness .......................................
442
         
111
         
108
         
108
         
Energy and Climate Solutions ………….………………………………………
107
         
109
         
108
         
108
         
Environment and Parks ……………………………………………………………
224
         
214
         
213
         
213
         
Finance ……………………………………………………………………………
1,582
      
1,145
      
974
         
944
         
Forests ………………………………………………………………………………
1,325
      
910
         
860
         
868
         
Health ………………………………………………………………………………
35,017
    
36,116
    
37,240
    
38,404
    
Housing and Municipal Affairs ......................................................................
1,535
      
1,713
      
1,777
      
1,851
      
Indigenous Relations and Reconciliation ………………………………………
186
         
182
         
191
         
187
         
Infrastructure ………………………………………………………………………
421
         
421
         
421
         
421
         
Jobs and Economic Growth ………………………………………………………
86
           
110
         
101
         
90
           
Labour ………………………………………………………………………………
24
           
24
           
24
           
24
           
Mining and Critical Minerals ………………………………………………………
70
           
57
           
57
           
57
           
Post-Secondary Education and Future Skills ...............................................
3,510
      
3,580
      
3,607
      
3,634
      
Public Safety and Solicitor General ..............................................................
1,104
      
1,100
      
1,100
      
1,099
      
Social Development and Poverty Reduction ................................................
5,705
      
5,977
      
6,057
      
6,156
      
Tourism, Arts, Culture and Sport …………………………………………………
191
         
189
         
183
         
183
         
Transportation and Transit ………………………………………………………
1,177
      
1,197
      
1,198
      
1,198
      
Water, Land and Resource Stewardship………………………………………
197
         
202
         
199
         
199
        
Total ministries and Office of the Premier ………………………………
66,882
    
67,926
    
68,927
    
70,228
    
Management of public funds and debt …………………………………………
2,887
      
3,798
      
4,644
      
5,404
      
Contingencies Vote …...................................................................................
4,000
      
5,000
      
5,000
      
5,000
      
Funding for capital expenditures ……………………………………………...…
5,480
      
6,153
      
6,383
      
5,346
      
Refundable tax credit transfers ……………………………………………...…
2,620
      
2,466
      
2,787
      
2,922
      
Legislative Assembly and other appropriations ………………………………
243
         
265
         
256
         
258
        
Total appropriations …………………………………………………………
82,112
    
85,608
    
87,997
    
89,158
    
Elimination of transactions between appropriations 2 …………………………
(24)
          
(23)
          
(23)
          
(13)
          
Prior year liability adjustments ……………………………………………………
(31)
         
-
              
-
              
-
             
Consolidated revenue fund expense ………………..…………………………
82,057
    
85,585
    
87,974
    
89,145
    
Expenses recovered from external entities …………………………….………
6,038
      
6,388
      
5,934
      
5,767
      
Funding provided to service delivery agencies ............................................
(51,144)
   
(52,471)
   
(53,413)
   
(53,201)
  
Total direct program spending ………………..…………………………………
36,951
    
39,502
    
40,495
    
41,711
   
Service delivery agency expense 3
School districts ……………………………………………………………………
9,523
      
9,606
      
9,676
      
9,704
      
Universities …………………………………………………..............................
7,201
      
7,350
      
7,484
      
7,648
      
Colleges and institutes ………………………………………………….............
1,853
      
1,779
      
1,765
      
1,800
      
Health authorities and hospital societies ………………………………………
30,605
    
31,297
    
31,986
    
32,800
    
Other service delivery agencies …………………………………………………
8,963
      
9,298
      
9,337
      
9,528
     
Total service delivery agency expense …………………………………
58,145
    
59,330
    
60,248
    
61,480
   
Subtotal expense ………………………………………………………………….
95,096
    
98,832
    
100,743
  
103,191
  
Expenditure management 4 ………………………………………………………
(400)
        
-
              
-
              
-
             
Total expense ………………………………………………………………….......
94,696
    
98,832
    
100,743
 
103,191
1
2
3
4
The 2025/26 spending for service delivery agencies includes funding that was provided during the year from ministries' budget and contingencies.  
Similarly, spending forecasts for 2026/27 and future years may also be revised as ministry funding amounts are updated in-year.
Restated to reflect government's organization and accounting policies as of April 1, 2026. 
%udget  expenditure management targets for 2026/27 onwards have been reflected in the each ministry's base budget. For more information, see the 
Expenditure Management and Efficiency Review topic box starting on page 27.
Reflects payments made under an agreement where an expense from a voted appropriation is recorded as revenue by a special account.

--- page 49 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 39
THREE YEAR FISCAL PLAN
Table 14   5evenue by Source
($ millions)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan   
2027/28
Plan   
2028/29
Taxation revenue
Personal income …………………………………………………………
19,186
     
19,492
     
20,704
     
22,004
     
Corporate income …………………………………………………………
7,957
       
7,645
       
8,158
       
8,162
       
Employer health …………………………………………………………
3,075
       
3,167
       
3,264
       
3,382
       
Sales ………………………………………………………………………
10,687
     
11,436
     
12,120
     
12,545
     
Fuel …………………………………………………………………………
1,014
       
1,039
       
1,054
       
1,069
       
Carbon 1 ……………………………………………………………………
262
          
334
          
386
          
440
          
Tobacco ……………………………………………………………………
291
          
311
          
311
          
311
          
Property ……………………………………………………………………
4,067
       
4,451
       
4,979
       
5,330
       
Property transfer …………………………………………………………
1,750
       
1,935
       
2,077
       
2,229
       
Insurance premium and other ……………………………………………
935
          
965
          
985
          
1,005
      
49,224
     
50,775
     
54,038
     
56,477
    
1atural resource revenue
Natural gas royalties ………………………………………………………
942
          
1,297
       
1,305
       
1,572
       
Forests ……………………………………………………………………
505
          
521
          
518
          
556
          
Other natural resources 2 …………………………………………………
1,108
       
1,193
       
1,354
       
1,421
      
2,555
      
3,011
      
3,177
      
3,549
      
2tKer revenue  
Post-secondary education fees  …………………………………………
2,691
       
2,578
       
2,598
       
2,658
       
Other fees and licences 3 ………………………………………………
2,607
       
2,664
       
2,725
       
2,659
       
Investment earnings ………………………………………………………
1,823
       
2,000
       
2,133
       
2,255
       
Miscellaneous 4 ……………………………………………………………
7,657
       
5,207
       
4,979
       
4,996
      
14,778
    
12,449
    
12,435
    
12,568
    
Contributions from tKe federal government
Health and social transfers ………………………………………………
9,822
       
10,309
     
10,764
     
11,161
     
Other federal government contributions 5 ………………………………
4,788
       
5,159
       
4,339
       
4,174
      
14,610
    
15,468
    
15,103
    
15,335
    
Commercial CroZn corporation net income
BC Hydro …………………………………………………………………
712
          
712
          
712
          
712
          
Liquor Distribution Branch ………………………………………………
950
          
945
          
897
          
847
          
BC Lottery Corporation 6 …………………………………………………
1,269
       
1,293
       
1,339
       
1,386
       
ICBC  ………………………………………………………………………
800
          
700
          
700
          
700
          
Other 7 ………………………………………………………………………
184
          
170
          
177
          
180
         
3,915
      
3,820
      
3,825
      
3,825
      
Total revenue ………………………………………………………………
85,082
     
85,523
     
88,578
     
91,754
    
1 Include revenue related to output-based pricing system.
2 Columbia River Treaty, Crown land tenures, other energy and minerals, water rental, and other resources.   
3 Health-care related, motor vehicle, and other fees.   
4
5
6
7
Miscellaneous revenue includes $2.725 billion in 2025/26 in relation to the tobacco settlement and $139 million in 2026/27 to reflect the addition of 
health sector regulatory colleges under the Health Professions and Occupations Act to the government reporting entity effective April 1, 2026.
Net of payments to the federal government and payments to the BC First Nations Gaming Revenue Sharing Limited Partnership in accordance with 
section 14.3 of the Gaming Control Act (B.C.).
Includes contributions for health, education, community development, housing and social service programs, transportation projects, and payments 
under the Disaster Financial Assistance Arrangements.              
Includes Columbia Power Corporation, BC Railway Company, Columbia Basin power projects, and other agencies' self-supported subsidiaries. 

--- page 50 ---
THREE YEAR FISCAL PLAN
40 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Revenue
Total revenue is expected to slightly increase 0.5 per cent from 2025/26 to 2026/27, 
followed by an increase of 3.6 per cent in 2027/28 and in 2028/29. Taxation revenues 
incorporate increased risk and uncertainty due to the U.S. tariffs included in the 
economic forecast, as well as new revenue measures detailed in Part 2 - Tax Measures. 
Te forecast also reflects increasing natural resource revenues over the three-year fiscal 
plan mainly due to the inclusion of projected increased natural gas royalties related to the 
production requirements of liquefied natural gas (LNG) and rising commodity prices. 
Over the fiscal plan period, revenue increases in taxation, natural resources, commercial 
Crown corporations net income and other sources while revenue falls on contributions 
from the federal government.
Taxation revenue is projected to slightly increase in 2026/27 due to the estimated 
impacts of tax measures and growth in economic activity, partly offset by the effect 
of one-time income tax revenues in 2025/26 that do not carry forward. Te forecast 
includes tax measures that increase personal income tax, provincial sales tax and property 
tax revenues as well as higher tax reassessments due to increased audit activity over the 
fiscal plan. Effective April 1, 2025, the carbon tax revenue forecast excludes the consumer 
carbon tax and now relates to the output-based pricing system, under which large 
regulated industrial operations will pay for emissions that exceed performance-based 
emissions limits. Taxation revenue is forecast to average 5.5 per cent annual growth 
over the last two years of the fiscal plan, supported by tax measures and nominal GDP 
growth. 
49.2
50.8
54.0
56.5
2.6
3.0
3.2
3.6
12.1
12.4
12.5
12.6
2.7
14.6
15.5
15.1
15.3
3.9
3.8
3.8
3.8
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
Natural 
Resources
Taxation 
Revenue
Other
Revenue
Commercial Crown 
Net Income
$85.5
0.5%
Federal Contributions
Total revenue
Annual % change
$88.6
3.6%
$91.8
3.6%
$85.1
1.2%
 Eillions
One-time Tobacco 
Settlement
&Kart   5evenXe )orecast

--- page 51 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 41
THREE YEAR FISCAL PLAN
Natural resource revenue is forecast to increase by 17.8 per cent in 2026/27 from 
2025/26 due to significant increases expected in natural gas prices as well as increases 
in lumber prices, overall stumpage rates, electricity, coal and metal prices. Revenue 
is expected to increase at an average of 8.6 per cent over the next two years, mainly 
reflecting the effects of an assumed gradual rise in lumber, natural gas, coal and metal 
prices, and LNG export activity. 
Other revenue consists of fees, licences, investment earnings and other miscellaneous 
sources, incorporating estimates provided by ministries and taxpayer-supported agencies. 
Over the next three years, these revenues are projected to be relatively flat as higher 
revenue from fees and investment earnings are offset by lower miscellaneous revenue.
Federal government contributions are forecast to increase by 5.9 per cent in 2026/27 
mainly due to rising Canada Health and Social transfers and an increase in funding 
to post-secondary institutions. Canada Health Transfer and Canada Social Transfer 
contributions are forecast to average 4.1 per cent annual growth over the last two years 
in the fiscal plan period. However, other federal government transfers are projected to 
decline at an average of 10.1 per cent annually over the same period, resulting in an 
overall decline of 0.4 per cent over the two year period. Tese reductions are mainly due 
to timing of forecasts for payments under the Disaster Financial Assistance Arrangements
and lower funding for health care, child care, public transit and transfers to BC Housing 
Management Commission. Funding for these programs is generally updated annually 
and increases in future years will be shown in future budgets.
7aEle 1.5.1   CRPparLVRn RI 0aMRr )actRrV 8nGerl\Lng 5eYenue 
Calendar Year
Per cent growth unless otherwise indicated
2025
2026
2027
2028
2025
2026
2027
2028
Real GDP …………………………………………………
1.5
1.3
1.8
1.9
1.8
1.9
1.9
2.1
Nominal GDP ……………………………………………
4.1
4.4
4.1
4.2
4.3
4.3
4.2
4.4
Household income ………………………………………
3.4
3.4
3.8
4.2
4.1
4.0
4.2
4.2
Wages and salaries ………………………………………
2.6
3.3
3.3
3.9
4.5
3.9
3.7
3.9
Corporations net operating surplus ……………………
8.1
9.6
4.6
3.4
-1.2
2.1
2.6
5.3
Employment ………………………………………………
1.1
0.4
0.8
1.0
0.8
0.8
1.0
1.1
Consumer expenditures on durable goods ……………
10.9
3.0
2.8
3.5
3.3
3.2
3.3
3.2
Consumer expenditures on goods and services ……
5.0
3.6
4.2
4.6
4.2
3.8
4.6
4.7
Business investment ……………………………………
3.4
4.1
3.2
2.1
5.1
5.3
2.9
4.6
Residential investment …………………………………
1.0
3.8
5.9
6.4
6.4
6.6
6.0
6.4
Retail sales ………………………………………………
5.8
2.4
3.3
3.8
2.6
3.1
3.5
3.6
Residential sales value …………………………………
-8.4
13.1
7.6
6.5
15.9
6.7
5.1
5.6
B.C. Housing starts ………………………………………
-3.6
0.0
3.9
3.4
1.6
2.7
1.8
2.7
U.S. Housing starts ………………………………………
-0.9
-0.7
1.9
1.1
-0.3
2.9
0.0
0.0
SPF 2x4 price ($US/thousand board feet) ……………
$467
$470
$490
$495
$440
$445
$450
$450
Exchange rate (US cents/Canadian dollar) ……………
71.5
73.6
75.6
77.0
70.0
71.8
74.5
75.8
Fiscal Year
2025/26
2026/27
2027/28
2028/29
2025/26
2026/27
2027/28
2028/29
Natural gas price ($Cdn/GJ at plant inlet) ……………
$1.12
$2.18
$2.39
$2.48
$1.30
$1.69
$1.75
$1.77
Bonus bid average bid price per hectare ($) ………… $3,200
$200
$200
$200
$200
$300
$300
$300
Electricity price ($US/mega-watt hour, Mid-C) ………
$60
$60
$58
$63
$69
$71
$67
$71
Metallurgical coal price ($US/tonne, fob Australia ) …
$189
$198
$205
$209
$218
$215
$214
$212
Copper price ($US/lb)  …………………………………
$4.70
$4.97
$4.96
$5.03
$4.32
$4.39
$4.65
$4.73
Average stumpage rates ($Cdn/cubic metre) …........
$14.94
$15.24
$15.14
$16.44
$18.20
$19.21
$19.54
$20.59
Crown harvest volumes (million cubic metres) ………
29.0
29.0
29.0
29.0
30.0
30.0
29.0
29.0
)ebruary , 
0arch , 

--- page 52 ---
THREE YEAR FISCAL PLAN
42 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Major Revenue Sources
Table 1.5.1 provides major revenue assumptions for Budget 2026. Additional key 
assumptions and sensitivities relating to revenue are provided in Appendix Table A5. 
Te sensitivities included in the appendix provide a sense of potential impacts to revenue 
projections if there are changes to underlying assumptions and factors by individual 
revenue sources. Te major revenue components are detailed below.
Taxation revenue
Personal income tax revenue is expected to grow 1.6 per cent in 2026/27 reflecting tax 
measures, increase in wages and salaries, investment income and improved financial 
market indicators, partly offset by the effect of one-time prior year adjustment included 
in 2025/26. An average annual increase of 6.2 per cent is expected over the next two 
years, in line with projected increases in household income and the estimated impacts 
of new tax measures. For more details refer to Part 2: Tax Measures on page 79.
Corporate income tax revenue is mainly based on cash installments received from the 
federal government, reflecting estimates of current year tax and settlement adjustments 
for prior years. Revenue is expected to decrease 3.9 per cent in 2026/27 mainly due to a 
significant one time settlement payment received in 2025/26 that does not carry forward. 
An average annual increase of 3.3 per cent is expected over the two years of the fiscal plan 
due to annual changes in installments as well as expected settlement payments relating to 
prior years. 
7aEle 1.5.3   CRrpRrate ,ncRPe 7a[ 5eYenue
($ millions)
2025/26
2026/27
2027/28
2028/29
Advance installments:
– Payment share ……………………………………………..... 12.91%
12.93%
12.99%
12.72%
– Installments ……………………………………………………
7,221
    
7,699
     
8,025
     
8,027
   
Prior-years' settlement payment ...............................................
736
       
(54)
         
133
        
135
     
CRrpRrate LncRPe ta[ reYenue …………………………………
7957
    
7645
     
8158
     
8162
  
Annual per cent growth ……………………………………………
-3.7%
-3.9%
6.7%
0.0%
7aEle 1.5.2   PerVRnal ,ncRPe 7a[ 5eYenue
($ millions)
2025/26
2026/27
2027/28
2028/29
BaVe perVRnal LncRPe ta[ reYenue ………………………………………………
18242
   
19079
   
20024
   
21022
   
Base revenue annual growth …………………………………………………....
4.6%
5.0%
5.0%
%udget   tax measure:
     Increase lowest personal income tax rate from 5.06% to 5.60%...............
118
        
476
        
493
        
513
        
     Increase B.C. tax reduction credit by $115….............................................
(27)
         
(123)
       
(122)
       
(121)
       
     Freeze personal income tax brackets and non-refundable credits….........
-
             
60
          
309
        
590
        
Prior-year adjustment .........................................................................................
853
        
-
             
-
             
-
            
Budget 2026  reYenue ......................................................................................
19186
  
19492
  
20704
  
22004
  
Annual growth ……………………………………………………….........................
12.7%
1.6%
6.2%
6.3%
Household income growth (calendar year) …………………………………………
3.4%
3.4%
3.8%
4.2%
Employee compensation income growth (calendar year) …………………………
2.6%
3.3%
3.3%
3.9%

--- page 53 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 43
THREE YEAR FISCAL PLAN
Employer health tax revenue growth is expected to average 3.2 per cent annually over the 
three year fiscal plan, consistent with forecast growth in wages and salaries.
Provincial sales tax revenue is expected to average 5.5 per cent growth annually over 
the three year fiscal plan, in line with expected increases in nominal GDP, consumer 
expenditure on taxable goods and new tax measures. Te forecast also incorporates tax 
measures relating to expanding the provincial sales tax to include professional services 
and repealing outdated exemptions. Te measures are outlined in Part 2 - Tax Measures. 
Motor fuel tax revenue is expected to increase an annual average of 1.8 per cent over 
the three-year plan mainly due to relatively flat growth in gasoline and diesel purchase 
volumes which comprise about 76 per cent of total fuel tax revenues. 
Output-based pricing system revenue collected from large industrial emitters is expected 
to average 18.9 per cent growth annually over the next three years, mainly reflecting 
increasing compliance charge rates and stringency requirements.
Property tax revenue is forecast to grow at an average of 9.4 per cent annually over 
the next three years, reflecting new tax measures and growth in nominal GDP. Te 
forecast includes the implementation of residential, non-residential and rural tax rates 
to increase in line with the three year average of nominal GDP instead of inflation, 
effective January 1, 2026. Te tax rates for additional school tax for properties worth 
over $3 million will also increase effective January 1, 2027. Tax measures are outlined in 
Part 2 - Tax Measures.
Property transfer tax revenue growth is expected to average 8.4 per cent annually over the 
next three years, consistent with expected annual changes in residential sales values. 
Natural resource revenue
Natural gas royalties revenue growth is expected to average 18.6 per cent annually over the 
three-year fiscal plan mainly due to increased royalties from natural gas liquids, higher 
natural gas prices and production volumes. Natural gas royalty rates are sensitive to prices 
in the $1.22 to $2.82 ($Cdn/gigajoule, plant inlet) range, with the effective royalty rate 
expected to rise as prices increase.
7aEle 1.5.4   6aleV 7a[ 5eYenue
2025/26
2026/27
2027/28
2028/29
PrRYLncLal ValeV ta[eV ........................................................
10687
  
11436
  
12120
  
12545
  
Growth rate ……………………………………………………
3.1%
7.0%
6.0%
3.5%
Annual per cent change (calendar year)
2025
2026
2027
2028
Consumer expenditures on durable goods …………………
10.9%
3.0%
2.8%
3.5%
Consumer expenditures on goods and services ……………
5.0%
3.6%
4.2%
4.6%
Residential investment ………………………………………
1.0%
3.8%
5.9%
6.4%
Business investment …………………………………………
3.4%
4.1%
3.2%
2.1%
Government expenditures ……………………………………
5.2%
3.5%
0.8%
2.0%
Nominal GDP …………………………………………………
4.1%
4.4%
4.1%
4.2%
Retail sales ……………………………………………………
5.8%
2.4%
3.3%
3.8%
     ($ millions)

--- page 54 ---
THREE YEAR FISCAL PLAN
44 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Te forecast assumes an average natural gas price of $2.18 ($Cdn/gigajoule, plant inlet) 
in 2026/27, up from $1.12 in 2025/26. Tis assumption is within the 20th percentile 
of the private sector forecasters, continuing the prudence the province has incorporated 
since 2013/14. Prices are expected to increase over the next two years to $2.39 in 
2027/28 and $2.48 in 2028/29, consistent with the growth of the average of the private 
sector forecasts. See Appendix Table A5 and A6 for more details regarding natural gas 
price forecasts.
Mining and minerals revenue is forecast to increase 32.6 per cent in 2026/27 mainly due 
to higher tax revenue reflecting higher coal production volume and commodity prices. 
Over the following two years, revenue is projected to increase at a 28.2 per cent annual 
average rate mainly due to improved mine profitability and higher commodity prices. 
Over the four years to 2028/29, the forecast assumes payments of $272 million to First 
Nations in support of mining revenue sharing agreements.
Revenue from electricity sales under the Columbia River Treaty is relatively flat over the 
three year fiscal plan mainly reflecting higher Mid Columbia electricity prices, offset by 
the impacts of a weaker U.S. dollar.
Other energy revenue is comprised of bonus bids and rents on drilling licences and 
leases, petroleum royalties, and fees collected by the BC Energy Regulator. Revenues 
are expected to increase 6.7 per cent in the last two years of the fiscal plan, mainly 
due to higher fees collected by the BC Energy Regulator, effects of higher petroleum 
prices, partially offset by lower revenue from bonus bids and rents on drilling licenses 
and leases.
942
1297
1305
1572
275
271
259
271
144
191
297
314
200
167
183
190
202526
)RrecaVt
202627
)RrecaVt
202728
)RrecaVt
202829
)RrecaVt
 PLllLRnV
1atural gaV 
rR\altLeV
2ther energ\
0etalV PLneralV
anG Rther
(lectrLcLt\ 
ValeV unGer 
the CRluPELa 
5LYer 7reat\
7Rtal
1926
2044
2347
1561
&Kart   5evenXe Irom (nergy 0etals and 0inerals

--- page 55 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 45
THREE YEAR FISCAL PLAN
Forest revenue growth is expected to average 3.3 per cent annually over the three year 
fiscal plan mainly due to higher overall stumpage rates reflecting an improved outlook 
for lumber prices partly offset by rising industry costs. Total annual harvest volume on 
Crown land is projected to average 29 million cubic metres over the fiscal plan period. 
Over the four years to 2027/28, the forecast assumes payments of $293 million to First 
Nations in support of Forest Consultation and Revenue Sharing Agreements. 
Other natural resource revenue is comprised of water rentals collected under the Water 
Sustainability Act and fees for hunting and fishing licences collected under the Wildlife 
Act. Tese forecasts are expected to increase at a 9.7 per cent annual average rate over the 
three year fiscal plan mainly due to higher water rental revenues from increased power 
generation, mainly reflecting the impacts of Site C and higher expected rainfall and 
snowpack levels.
Other Revenue 
Fees and licences: Over the three-year fiscal plan, revenue from fees and licences is 
expected to be flat. Fee revenue projections from schools, universities, colleges and health 
authorities (SUCH sector) account for 67 per cent of the total fee revenue forecast.
Investment earnings: Over the next three years, investment income is expected to average 
7.3 per cent annual growth mainly due to higher recoveries related to government’s Fiscal 
Agency Loan program, which has an equal and offsetting higher expense, resulting in 
no net impact on the projected annual deficit. Tese recoveries are expected to comprise 
approximately 69 per cent of total investment earnings.
Miscellaneous revenue includes sales of goods and services, fines and penalties, and 
other miscellaneous items, are projected to increase slightly over the fiscal plan period. 
Te 2025/26 forecast update includes the one-time tobacco settlement of $2.7 billion 
that does not carry forward. Approximately 55 per cent of the annual miscellaneous 
revenue is made up of sales of goods and services earned by the SUCH sector entities. 
Federal Government Transfers
Canada Health Transfer (CHT) and Canada Social Transfer (CST) contributions are 
expected to increase at a 4.4 per cent annual average rate over the three year fiscal plan 
mainly reflecting increasing national CHT and CST cash amounts and a relatively stable 
B.C. population share of the national total. Te plan assumes the national CHT cash 
disbursement increases 5.0 per cent over 2025/26 through 2027/28 and 3.7 per cent in 
2028/29. Te 2026/27 cash disbursement is based on a three year average (2024 to 2026) 
of Canada’s forecast of nominal GDP growth. Te forecast adopts the most recently 
published federal government outlook for national nominal GDP. Te total CST cash 
disbursement is projected to increase 3.0 per cent annually, consistent with the federal 
government forecast. 
Other federal government contributions are expected to increase 7.7 per cent in 2026/27 
mainly due to higher funding in support of health care, public transit and transfers 
under the Disaster Financial Assistance Arrangements (DFAA). Over the next two years, 
other  federal government contributions are expected to decrease by an average of 
10.1 per cent annually mainly due to reduced program funding in support of health care, 
local government, public transit, housing and transfers under the DFAA. Te decreases 
are partially offset by increased transfers to post-secondary institutions.

--- page 56 ---
THREE YEAR FISCAL PLAN
46 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Commercial Crown Corporations
British Columbia Hydro and Power Authority (BC Hydro): BC Hydro’s annual 
net-income target for the purpose of rate setting is set by regulation. Consistent with 
previous years, the forecast assumes a net income of $712 million in each year of the 
three year fiscal plan. Te payment of dividends to government was phased out several 
years ago to assist with stabilizing rate increases and improve BC Hydro’s capital structure 
to a 60:40 debt to equity ratio (currently 80:20). No dividend payments are forecast 
during the fiscal plan period.
British Columbia Liquor Distribution Branch (LDB): LDB is projecting an annual net 
income of $945 million in 2026/27 with modest reductions in each year of the fiscal plan 
period. Reductions to net income reflect lower expected sales revenue due to economic 
conditions, shifts in consumer purchase preferences, and a downward trend in liquor 
consumption.
British Columbia Lottery Corporation (BCLC): BCLC’s forecast net income1 is 
$1.29 billion for 2026/27, $1.34 billion for 2027/28, and $1.39 billion for 2028/29. 
Approximately 23 per cent of the corporation’s total net income is distributed to 
community gaming grants, host local governments, and the BC First Nations Gaming 
Revenue Sharing Limited Partnership. Te remaining net income is used to support 
government programs including health care.
Insurance Corporation of British Columbia (ICBC): ICBC is forecasting annual net 
income of $700 million for all fiscal years over the plan period. Te forecast is subject to 
a number of financial and behavioural assumptions and actual results could vary from 
these projections.
For more information relating to commercial Crown corporations, please see Service 
Plans listed on the Budget 2026 website or the corporations’ respective websites.
1 Government reports BCLC’s net income net of payments to the federal government and payments to the BC First Nations Gaming Revenue Sharing Limited 
Partnership in accordance with section 14.3 of the Gaming Control Act (B.C.).
7aEle 1.5.5   )eGeral GRYernPent CRntrLEutLRnV
($ millions)
2025/26
2026/27
2027/28
2028/29
Canada Health Transfer ……………………………………
7,450
    
7,855
    
8,239
    
8,556
    
Canada Social Transfer ……………………………………
2,372
    
2,454
    
2,525
    
2,605
   
Total Health and Social Transfers …………………………
9,822
    
10,309
 
10,764
 
11,161
Disaster Financial Assistance Arrangements ….............
434
       
520
       
207
       
357
       
BC Housing Management Commission …………………
236
       
205
       
221
       
22
         
Ministry Vote Recoveries …………………………………
2,870
    
3,167
    
2,620
    
2,462
    
Other Transfers to Ministries and Agencies ……………
1,248
    
1,267
    
1,291
    
1,333
   
Total Other Contributions ...............................................
4,788
    
5,159
    
4,339
    
4,174
   
7Rtal )eGeral GRYernPent CRntrLEutLRnV ……………
14610
 
15468
 
15103
 
15335
 
BC share of national population (July 1) .....................
13.68%
13.68%
13.67%
13.69%

--- page 57 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 47
THREE YEAR FISCAL PLAN
,nvestments in &lean (nergy
One of the key components of B.C.’s Look 
West strategy is expanding clean energy 
capacity to drive nation building economic 
growth, deliver critical minerals, and create the 
renewable energy the world needs. BC Hydro, 
one of many organizations making the vision of 
Look West a reality, is continuing to invest in 
clean energy to help households, businesses and 
industries save on their energy bills and switch 
from fossil fuels to clean electricity. Tis helps 
reduce the pollution that is driving climate 
change, reduce costs for clean energy users, 
and build healthier communities. 
Today, the Province is in a unique position to 
turn global trade uncertainty into momentum 
for growth and transformation In May 2025, 
government introduced additional measures 
through the made-in-B.C. Clean Power Action 
Plan to support government’s commitment to 
strengthen our economy and diversify trade. 
Tis plan ensures B.C.’s electricity system — 
built on the strong foundation of BC Hydro’s 
service — is equipped to enable stability and 
strong economic growth, increase supply for 
new homes, businesses, and industries, create 
jobs for British Columbians, and maintain 
affordable rates for customers. With a legacy of 
innovation and a forward-looking vision, the 
Province is ready to power the future. 
Te Province continues to work in close 
collaboration with First Nations and the 
clean-energy sector in delivering on this 
plan. Te 2024 call for power resulted in 
10 new renewable energy projects, with First 
Nations asset ownership between 49 per cent 
and 51 per cent, capable of powering about 
500,000 new homes. Te 10 projects include 
one solar project (the ShTSaQU Solar Project 
in Logan Lake), and nine wind projects 
(including Yəyus Energy in Campbell River, 
and the Nithi Mountain Wind Project in Fraser 
Lake). Together, the 10 projects are expected to 
generate up to $6 billion in private investment, 
with up to $3 billion under First Nations 
ownership, and create approximately 2,000 jobs 
annually during construction. Te projects will 
also deliver power at prices 40 per cent lower 
than BC Hydro’s last clean-power process in 
2010, after adjusting for inflation. Te 2025 
call for power, currently underway, aims 
to acquire a target of up to 5,000 gigawatt 
hours per year of energy from large, clean and 
renewable projects in partnership with First 
Nations and independent power producers. 
Te 2024 and 2025 call for power projects 
will collectively generate enough energy to 
power one million homes and boost B.C.’s 
power supply by 16 per cent. Te Province 
is committed to completing regular calls for 
power to continue securing new sources of 
affordable, clean electricity that will support 
British Columbia’s expanding economy and 
create thousands of skilled jobs. BC Hydro’s 
next call for power is anticipated to be in 2028.
In addition to increasing B.C.’s energy capacity 
through various renewable energy projects, 
BC Hydro recently launched a competitive 
process to allocate electricity to support and 
strengthen emerging technology sectors in 
B.C., including AI and data centers.
To help supply clean power to British 
Columbians across the province, BC Hydro is 
continuing to implement its 10-Year Capital 
Plan to expand and strengthen community 
and regional electrical infrastructure. Tis 
multi-year $36 billion investment, announced 
in January 2024, will help to ensure that 
BC Hydro can reliably deliver clean power to 
new homes, businesses, and industries when 
and where they need it. Tese important 
investments create economic opportunities 
across the province, including around 
10,000 jobs for skilled workers, and economic 
growth for First Nations and communities. 
In concert with electricity infrastructure 

--- page 58 ---
THREE YEAR FISCAL PLAN
48 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
investments, BC Hydro continues to support 
households, communities and industry 
with programs to support affordability and 
greenhouse gas (GHG) emission reductions. 
Since 2022, BC Hydro has invested over 
$532 million on energy efficiency and 
electrification programs, achieving more 
than 1,800 gigawatts of energy savings and 
351 megawatts of capacity savings through 
2024/25. Going forward, BC Hydro has 
committed $348 million in 2026/27 to 
support customers in becoming more energy 
efficient, switch from fossil fuels to clean 
electricity (including in remote communities), 
and expand B.C.’s EV charging infrastructure. 
Planned program expenditures for 2027/28 
and 2028/29 are expected to maintain this level 
of investment in alignment with BC Hydro’s 
2021 and 2025 Integrated Resource Plan. 
BC Hydro’s program expenditures are 
coordinated with government and subject 
to BC Hydro Board and British Columbia 
Utilities Commission approval.
Budget 2026 also maintains government’s 
commitment to additional rebate programming 
for electric heat pumps for low- and moderate-
income households, including those in 
multi-unit residential buildings, to support 
homeowners in improving energy efficiency. 
Tis includes over $60 million through the 
Better Homes Better Buildings programs, 
maintaining a key component of CleanBC 
programming while the results of the formal 
review of CleanBC are being considered by 
the Province.
In addition, the Province continues to support 
programs to advance innovation and adoption 
of clean-energy technology projects through the 
Clean Industry Fund and the Innovative Clean 
Energy Fund. 
Budget 2026 includes $35 million for the 
2026 intake of the Clean Industry Fund, a 
program that supports the development, trial 
and deployment of projects that reduce GHG 
emissions from large industrial operations in 
British Columbia. Since its inception in 2019, 
the Clean Industry Fund has provided more 
than $368 million in funding to 173 projects, 
estimated to achieve 14 million tonnes of 
greenhouse gas emissions over 10 years, the 
equivalent of eliminating over 20 per cent of 
emissions from all heavy-duty vehicles in B.C.
Budget 2026 also sustains the Innovative 
Clean Energy Fund, which leverages revenues 
collected through a levy on certain energy sales 
to support clean energy technology that helps 
to advance B.C.’s clean energy sector. Since 
2008, the Innovation Clean Energy Fund 
has committed over $124 million to support 
pre-commercial clean energy technology 
projects, clean energy vehicles, research and 
development, and energy efficiency programs.

--- page 59 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 49
THREE YEAR FISCAL PLAN
Capital Spending
In Budget 2026, capital spending on schools, hospitals, roads, bridges, hydro-electric 
projects and other infrastructure throughout the province is expected to total 
$52.9 billion over the fiscal plan period. Tese investments will create good jobs in 
communities throughout the province and ensure the necessary infrastructure is in place 
to deliver and improve services for British Columbians.
Taxpayer-Supported Capital Spending
Taxpayer-supported capital spending over the next three years will total $37.7 billion. 
Spending supports completion of approved projects along with investments to sustain 
provincial infrastructure, including schools, post-secondary facilities, roads, bridges, and 
hospitals. Te Budget 2026 three-year total is $8.2 billion lower than Budget 2025 due to 
the wind down of spending as major projects approach completion such as stal̕əw̓ asəm
(Riverview) Bridge, Dawson Creek and District Hospital and New St. Paul’s Hospital; 
changes to the timing of cashflows; and resequencing of major capital projects stemming 
from the capital plan review. Moderation will help temper construction cost escalation 
and support a competitive debt-to-GDP ratio. Further details on the capital plan review 
are discussed in the capital topic box on page 66. 
7aEle 1.6  CapLtal 6penGLng
 ($ millions)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan   
2027/28
Plan   
2028/29
7a[pa\erVuppRrteG
Education
Schools (K–12) …………………………………………
1,377
      
1,503
      
1,395
      
1,046
      
Post-secondary institutions ……………………………
1,484
      
1,657
      
1,488
      
1,281
      
Health ………………………………………………………
3,713
      
3,796
      
3,924
      
3,385
      
BC Transportation Financing Authority …………………
4,027
      
4,791
      
4,382
      
3,513
      
BC Transit ………………………………………..………
295
         
325
         
489
         
347
         
Government ministries ……………………………………
562
         
483
         
410
         
466
         
Social housing 1 ……………………………………………
775
         
914
         
959
         
794
         
Other 2 ………………………………………………………
234
         
195
         
70
           
53
          
7Rtal ta[pa\erVuppRrteG ………………………………
12467
   
13664
   
13117
   
10885
   
6elIVuppRrteG 
BC Hydro …………………………………………………
4,288
      
4,760
      
4,839
      
4,991
      
Columbia Basin power projects 3 ………………………
18
           
19
           
23
           
18
           
BC Railway Company ……………………………………
4
             
6
             
6
             
4
             
ICBC ………………………………………………………
178
         
113
         
60
           
61
           
BC Lottery Corporation …………………………………
98
           
95
           
90
           
90
           
Liquor Distribution Branch ……………………………...
20
           
20
           
30
           
30
          
7Rtal VelIVuppRrteG ……………………………………
4606
     
5013
     
5048
     
5194
     
7Rtal capLtal VpenGLng ……………………………………
17073
   
18677
   
18165
   
16079
   
1
2
3
Includes BC Housing Management Commission.
Includes BC Pavilion Corporation, Royal BC Museum and other service delivery agencies.
Joint ventures of the Columbia Power Corporation and Columbia Basin Trust.           

--- page 60 ---
THREE YEAR FISCAL PLAN
50 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Investments in Schools
Over the fiscal plan, approximately $3.9 billion will be invested in K-12 schools 
throughout the province. Tis includes continued investment in seismic replacements 
and upgrades as well as projects to address enrolment growth in fast growing 
communities.
Examples of K-12 capital investments in Budget 2026 include:
• $203 million for the new Smith Secondary School in the Langley School District. 
Te 1,900-student capacity school is expected to complete in 2027.
• $176 million for replacement of Mission Senior Secondary School in the Mission 
School District. Te 1,500-student capacity school will include a neighbourhood 
learning centre. Te school is expected to complete in 2028.
• $144 million for the replacement of Pitt Meadows Secondary School in the Maple 
Ridge-Pitt Meadows School District. Te 1,100-student capacity secondary school will 
include a neighbourhood learning centre. Te school is expected to complete in 2029.
• $127 million for replacement of Prince Rupert Middle School in the Prince Rupert 
School District, under the Seismic Mitigation Program. Te 600-student capacity 
school will be located on the current site and will include a neighbourhood learning 
centre. Te school is expected to complete in 2027.
• $103 million for the new Smith Middle School in the Langley School District. 
Te 900-student capacity school will include a neighbourhood learning centre. 
Te school is expected to complete in 2027.
• $101 million for the new Burtch Road Middle School in the Central Okanagan School 
District. Te 800-student capacity school will include a neighbourhood learning 
centre. Te school is expected to complete in 2030.
• $73 million for the new Beausoleil (Lansdowne) School in the Conseil scolaire 
francophone School District. Te 465-student capacity school will include 
a neighbourhood learning centre. Te school is expected to complete in 2030.
• $65 million for the new Simcoe Elementary School in the New Westminster School 
District. Te 605-student capacity school is expected to complete in 2028.
Supporting Post-Secondary Education
Budget 2026 includes $4.4 billion in total capital spending over the next three years 
by post-secondary institutions throughout the province. Tese investments will 
build capacity to support future workforce and economic development needs in key 
sectors, including health, science, trades and technology. A significant portion of this 
capital investment is funded through other sources, including foundations, donations, 
institutions, revenues generated from services, and federal funding. 
Current investments in the post-secondary sector include:
• $521 million to construct the permanent School of Medicine at Simon Fraser 
University in Surrey, strategically located as part of a major regional transit hub and 
closely integrated into the existing Surrey campus and civic infrastructure. 
Te project is expected to complete in 2030.

--- page 61 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 51
THREE YEAR FISCAL PLAN
• $150 million to expand the Engineering and Computer Science building and 
construct a new High Bay Research and Structures Lab building at the University of 
Victoria. Te project is expected to complete in 2026. 
• $58 million for construction of a four-storey hybrid mass timber Centre for Food 
Wine and Tourism at the Okanagan College campus in Kelowna. Te project is 
expected to complete in 2027.
• Te provincial student housing program was launched in 2018 to increase the number 
of student housing beds at B.C.’s public post-secondary institutions. Approved projects 
include:
– $143 million to construct an eight-storey, 358-bed student housing building with 
an adjacent 161-seat dining hall at Kwantlen Polytechnic University in Surrey. 
Te project is expected to complete in 2030.
– $24 million to construct 101 beds of student housing in a four-storey building with 
mass timber elements at the Okanagan College campus in Penticton. Te project is 
expected to complete in 2026.
• Te B.C. Knowledge Development Fund provides capital investment funding for 
research infrastructure across the province, enabling institutions to attract researchers 
and skilled technicians. Projects include: 
– $70 million for the Advanced Terapeutics Manufacturing Facility in Canada’s 
Immuno-Engineering and Biomanufacturing Hub at the University of British 
Columbia in Vancouver for the development and manufacturing of medical 
treatments. Tis project is expected to complete in 2028.
Expanding and Upgrading Health Facilities
Capital spending on infrastructure in the health sector will total $11.1 billion over the 
next three years. Tese investments support construction of major projects; upgrading 
health facilities; additional long-term care beds; and investments to improve access to 
primary care. Tese investments are supported by funding from the Province as well as 
other sources, such as regional hospital districts and foundations.
Examples of health sector capital investments in Budget 2026 include:
• $2.9 billion toward a net-new hospital and integrated cancer centre in Surrey. 
Te  hospital will include 168 inpatient beds, an emergency department, a medical 
imaging department, a surgical suite, a pharmacy, and a laboratory. Te project is 
expected to complete in 2029.
• $2.3 billion toward a new St. Paul’s Hospital at the Station Street site in Vancouver, 
which will include capacity for 548 inpatient beds, a new and larger emergency 
department, a surgical suite, consolidated specialty outpatient clinics and an 
underground parkade. Te project is expected to complete in 2027.
• $2.0 billion for the redevelopment of Richmond Hospital. Te redevelopment is a 
multi-phased project that includes a new 216-bed acute care tower, which will replace 
the original North Tower. Te new tower is anticipated to be open for patients in 
2028. Renovations to the South Tower and demolition of the North Tower will follow 
and is expected to complete in 2033.

--- page 62 ---
THREE YEAR FISCAL PLAN
52 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
• $1.9 billion for Phases 2 and 3 of the Royal Columbian Hospital Redevelopment. 
Phase 2 is an 11-storey, 388-bed, acute care tower including critical care and maternity, 
a new and expanded emergency department, a new surgical and interventional suite 
and an underground parkade. Te tower is expected to open in 2026, with Phase 3 
renovation early works expected to complete in 2029.
• $1.6 billion for the construction of a new Acute Care Tower at the University Hospital 
of Northern BC. Te new six-storey clinical services tower will include 211 beds with 
updated surgical, cardiac, and mental health and addictions services. Te project is 
expected to complete in 2031.
• $1.4 billion to replace the Cowichan District Hospital in Duncan with a new 204-bed 
hospital on a greenfield site in North Cowichan. Te replacement hospital will increase 
inpatient beds and emergency department treatment spaces. Te project is expected to 
complete in 2027. 
• $715 million for the construction of two cancer centres, one in Kamloops and one 
in Nanaimo. Te Kamloops project includes a standalone five-storey facility and 
a 470-stall parkade. Te planned Nanaimo facility will be four storeys and will be 
connected to the hospital. Both projects are expected to complete in 2028.
• $590 million for the Replacement of the Dawson Creek and District Hospital. Te 
new hospital will include 70 inpatient beds, an increase of 24 beds. Te project also 
includes an expansion of the emergency department, surgical and operating space, 
and ambulatory care services. Te project is expected to complete in 2027.
• $367 million for the redevelopment of the Cariboo Memorial Hospital in Williams 
Lake, which includes construction of a three-storey addition and renovation of vacated 
spaces in the existing hospital. Te redeveloped hospital will include 53 inpatient 
beds, an increase of 25 beds, and a larger emergency department. Te new addition is 
expected to open in 2026, while the renovations are expected to complete in 2029.
Supporting the Transportation Investment Plan
Over the three years of the fiscal plan, transportation capital investments total 
$13.8 billion. Te Province has secured federal cost sharing on projects and has leveraged 
investments through other partnerships. 
Te transportation capital plan includes investments in programs alongside an array of 
transit, infrastructure and highway improvements, including:
• $6.0 billion to construct the Surrey Langley SkyTrain project to add a 16-kilometre 
extension of the existing Expo Line. Te project will run on an elevated guideway 
primarily along Fraser Highway from King George Station to 203 Street in Langley 
City. Te project is expected to complete in 2029.
• $4.3 billion towards the Highway 99 Tunnel Program, including an eight-lane 
immersed tube Fraser River Tunnel that will replace the George Massey Tunnel, 
providing a toll-free crossing that aligns with regional interests and improves transit, 
cycling and walking connections across the Fraser River. Other parts of the program 
including the Steveston Interchange, transit and cycling projects worth $137 million 
are now in use. Te tunnel project is in design, and the estimated cost of the project 
is being updated and reviewed as the design and contract negotiations progress. 
Te Transportation Investment Plan (Table 1.7) includes an updated forecast of 
cash flows for the tunnel project. Due to commercial sensitivities related to releasing 

--- page 63 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 53
THREE YEAR FISCAL PLAN
an updated estimate for the project before a contract is executed, the Province will 
update the project budget and schedule once negotiations with the contractor have 
concluded.
• $3.0 billion for the Broadway Subway project, which will add 5.7 kilometres of 
SkyTrain line and six stations. Te project will provide frequent and reliable access 
to one of the most congested transit corridors in Metro Vancouver, meet current and 
future transportation needs, reduce traffic congestion and air pollution, and improve 
livability. Te project is under construction and is expected to complete in 2027.
• $2.7 billion investment towards the Highway 1 Mount Lehman Road to Highway 11 
project, Phase 3B of the Fraser Valley Highway 1 Corridor Improvement Program. 
Phase 3B will include several improvements along an 8 kilometre length of Highway 1 
from the Mount Lehman Road Interchange to Highway 11. Te project is expected to 
complete in 2031.
• $2.3 billion investment towards the Highway 1 264th Street to Mount Lehman 
Road project, Phase 3A of the Fraser Valley Highway 1 Corridor Improvement 
Program. Tis phase will include several improvements along a 13 kilometre length of 
Highway 1 from the 264th Street Interchange to Mount Lehman Road. Te project is 
expected to complete in 2028.
• $2.2 billion over three years to preserve and sustain transportation assets in order to 
maintain the safety and integrity of existing infrastructure. Examples include bridge 
rehabilitation, corridor paving, intersection improvements and culvert upgrades with 
investments throughout the province.
• $416 million investment toward the redevelopment of the Belleville Terminal. Te 
project will provide a safe, secure, state-of-the-art international gateway terminal for 
passengers and goods. Te project is expected to complete in 2028.
• $230 million towards the Highway 8 Corridor Project that will provide a permanent 
long-term solution to reinstate sites impacted by the 2021 atmospheric river event 
to pre-event conditions. Te project will see the construction of two new climate-
resilient 2-lane bridge structures and restore 13 kilometres of laneway lost to flooding. 
Te project is expected to complete in 2026.
• $93 million to construct a new Highway 1 Sackum Overhead Bridge that will replace 
the current bridge approximately 22 kilometres east of Lytton and 13 kilometres west 
of Spences Bridge. Te project will see the replacement of the existing end-of-life 
bridge with a new 2-lane bridge crossing the Canadian Pacific Kansas City Railway 
and Sackum Creek on Highway 1. Te project is expected to complete in 2027.
• $64 million investment to rehabilitate the Agassiz-Rosedale Bridge that will address 
steel degradation and improve the drainage system to extend the service life of the 
bridge. Te project is expected to complete in 2029.
Approximately $14.0 billion for transportation operating and capital investments over 
the next three years include:
• $12.3 billion of provincial investment in transportation infrastructure; and
• $1.7 billion of investment leveraged through federal cost sharing and partnerships with 
local governments and other organizations.

--- page 64 ---
THREE YEAR FISCAL PLAN
54 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Investments in Housing
Over the next three years, approximately $2.7 billion in taxpayer-supported capital 
spending will be invested to build housing across British Columbia. Tese projects are 
expected to create thousands of new homes over the next three years, providing a mix of 
shelter space, supportive housing, affordable housing, and near-market rental housing.
Housing projects are financed through a combination of government transfers for the 
development and purchase of provincially-owned assets and operating grants for the 
development and purchase of non-provincially-owned assets.
Examples of housing capital investments in Budget 2026 include:
• $221 million to develop 328 units through the Woodland Park affordable rental 
housing project, located at 296 Angela Drive, Port Moody. Te project is expected to 
complete in 2027.
• $188 million to develop 97 units through the Clark & 1st Avenue project, located 
at 1353 East 1st Avenue, Vancouver. Te project is developed by BC Housing, 
in partnership with Vancouver Coastal Health and the City of Vancouver. Te project 
is expected to complete in 2028.
• $173 million to develop 300 units through the 128 to 132 East Cordova Street project 
in Vancouver. Tis is a partnership between BC Housing, the City of Vancouver, 
Canada Mortgage and Housing Corporation and the Salvation Army Vancouver. 
Te project is expected to complete in 2026.
• $153 million to develop 205 units through the Pandora housing project, located at 
926-930 Pandora Avenue, Victoria. Te project is being developed in partnership 
with the City of Victoria and the Capital Region Housing Corporation. Te project is 
expected to complete in 2029.
7aEle 1.7  PrRYLncLal 7ranVpRrtatLRn ,nYeVtPentV
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan
2027/28
Plan
2028/29
Fiscal 
Plan 
Total
PrRYLncLal LnYeVtPentV
– Highway corridor rehabilitation …………………………………………
378
         
487
         
459
         
447
         
1,393
       
– Side road improvements ………………………………………………
190
         
197
         
201
         
202
         
600
         
– Pattullo Bridge replacement ……………………………………………
184
         
176
         
103
         
93
           
372
         
– Highway 99 Tunnel Program 1 …………………………………………
246
         
718
         
1,320
       
1,424
       
3,462
       
– Transportation Infrastructure Recovery ………………………………
42
           
48
           
27
           
-
              
75
           
– Fraser Valley Highway 1 Corridor Improvements Program…………
474
         
618
         
506
         
413
         
1,537
       
– Highway 1 to Alberta border ……………………………………………
139
         
137
         
93
           
162
         
392
         
– Broadway Subway ……………………………………………………..
274
         
275
         
175
         
108
         
558
         
– Surrey Langley Skytrain ………………………………………………
1,122
       
842
         
660
         
260
         
1,762
       
– Transit Infrastructure  ……………………………………………………
165
         
418
         
414
         
212
         
1,044
       
– Transportation and Trade Network Reliability  ………………………
293
         
333
         
304
         
207
         
844
         
– Safety improvements ……………………………………………………
61
           
91
           
75
           
70
           
236
         
– Community and other programs ………………………………………
25
           
21
           
22
           
23
           
66
          
7Rtal prRYLncLal LnYeVtPentV ………………………………………
3593
       
4361
       
4359
       
3621
       
12341
     
Investments funded through contributions from other partners ………
753
         
835
         
485
         
326
         
1,646
      
7Rtal LnYeVtPentV Ln tranVpRrtatLRn LnIraVtructure 2 ………………
4346
       
5196
       
4844
       
3947
       
13987
    
1
2 Total investments include operating and capital spending.
Includes the Fraser River Tunnel Project and Highway 99/Steveston Interchange Transit & Cycling Improvements. This includes an updated forecast of cash 
flows for the tunnel project.

--- page 65 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 55
THREE YEAR FISCAL PLAN
• $151 million to develop 248 units through the 1015 East Hastings project in 
Vancouver.  Tis project is a partnership between BC Housing, the Vancouver 
Aboriginal Friendship Centre Society, and the City of Vancouver. Te project is 
expected to complete in 2026.
• $120 million to develop 176 units through the Bertram project, located at 
1451 Bertram Street, Kelowna. Te project will provide non-market and affordable 
market rental housing for moderate to middle-income families. Te project is expected 
to complete in 2029.
• $79 million to develop 109 units through the King Edward supportive housing 
project, located at 1406 and 1410 East King Edward Avenue, Vancouver. Te project 
is expected to complete in 2028.
• $71 million to develop 94 units through the Pender supportive housing project, 
located at 343 West Pender Street, Vancouver. Te project will provide low-income 
seniors who are homeless or at risk of becoming homeless with stable tenancy and 
additional supports. Te project is expected to complete in 2029.
Ministry Capital Spending
Budget 2026 includes $1.4 billion in capital spending by government ministries over 
the fiscal plan period. Tis will support investments in maintaining, upgrading and 
expanding infrastructure, such as provincial park amenities, wildfire facilities and 
equipment, courthouses, correctional centres, office buildings and information systems.
Current and planned capital investments made by government ministries include:
• $496 million for the Plant and Animal Health Centre in Abbotsford to support 
monitoring, detection and prevention of disease spread. Te facility will replace the 
Animal Health Centre damaged during the 2021 flooding and is expected to complete 
in 2031.
Capital Project Reserves
Te three-year capital plan includes $150 million of central reserves.
Financing Capital Projects 
Provincial capital infrastructure spending is financed through a combination of sources:
• direct borrowing (debt financing);
• operating cash surplus;
• cost sharing with partners (e.g. federal government, regional hospital districts); and
• partnerships with the private sector (public-private-partnerships, or P3s).

--- page 66 ---
THREE YEAR FISCAL PLAN
56 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Self-Supported Capital Spending
Capital investments of self-supported commercial Crown agencies are projected to total 
over $15.3 billion over the fiscal plan period. Self-supported investments mainly include:
• $14.6 billion of total self-supported capital spending for electrical generation, 
transmission and distribution projects to meet growing customer demand and 
to enhance reliability. Included in this total is construction of a third dam and 
hydroelectric generating station on the Peace River through the Site C project. 
BC Hydro’s electricity system was largely built in the 1960s, 1970s, and 1980s and 
B.C.’s population and economy continue to grow. BC Hydro is upgrading and 
maintaining aging assets and will embark on an unprecedented level of construction 
over the next 10 years, expanding British Columbia’s electricity system for the future.
• $234 million for ICBC projects, including the costs for the head office relocation, 
investments in information technology, and facility maintenance and upgrades.
• $275 million for BC Lottery Corporation projects, including replacement of key 
legacy business systems, expansion of the lottery distribution network, and acquisition 
of gaming equipment to support lottery, PlayNow internet gaming, casino and 
community gaming activities.
• $80 million for Liquor Distribution Branch projects, including investments for 
updates and improvements to liquor stores, technology-related projects, and ongoing 
operating equipment replacements.
Table 1.8 provides information on major capital projects, and further details on provincial 
capital investments are shown in the service plans of ministries and Crown agencies. 
Projects Over $50 million
Approved major capital projects with multi-year budgets totaling $50 million or more, 
including provincial funding, are shown in Table 1.8. Annual allocations of the budget 
for these projects are included as part of the provincial government’s capital investment 
spending shown in Table 1.6.
In addition to financing through provincial sources, major projects may be 
cost-shared with the federal government, municipalities and regional districts, and/or
the private sector. Total capital spending for these major projects is $84.7 billion, 
reflecting provincial financing of $73.8 billion, including internal sources and 
public-private-partnership liabilities, as well as $10.9 billion in contributions from the 
federal government and other sources, including private donations.
Te following projects have been added to the table since the Second Quarterly Report:
• Beausoleil (Landsdowne) Elementary ($73 million); 
• Victoria General Hospital - Electrical Energy Centre ($76 million); 
• Agassiz-Rosedale Bridge Repair Project ($64 million); 
• BC Housing – 343 W Pender St. ($71 million); 
• BC Hydro – Goldstream - property purchase ($61 million); 
• BC Hydro – Public EV charging - light-duty program ($130 million); 

--- page 67 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 57
THREE YEAR FISCAL PLAN
• BC Hydro – McLellan - substation upgrade project ($77 million); 
• BC Hydro – Bridge River 1 - recoat penstocks 1-4 project ($126 million); and 
• BC Hydro – Newell substation upgrade project ($195 million).
Te following projects have been completed since the Second Quarterly Report and 
removed from the table:
• BC Housing – Stanley New Fountain; and
• BC Hydro – Various Sites - NERC Critical Infrastructure Protection implementation 
project for cyber assets.
As previously announced, the following projects have been cancelled since the 
Second Quarterly Report and removed from the table:
• Highway 1 Goldstream Safety Improvements; and
• BC Housing – 2086-2098 W 7th Ave. 
Other changes since the Second Quarterly Report include:
• Stitó:s Lá:lém totí:lt Elementary Middle School project’s anticipated total cost 
decreased from $54 million to $53 million to reflect final project cost.
• Burke Mountain Secondary project’s year of completion was amended from 2026 
to 2027 due to site work delays impacting project schedule; 
• Simcoe Elementary project’s year of completion was amended from 2029 to 2028 
to reflect the revised project schedule; 
• Pitt Meadows Secondary project’s year of completion was amended from 2028 to 2029 
to reflect the revised project schedule; 
• Okanagan College – Student Housing project’s anticipated total cost increased from 
$73 million to $74 million to reflect final project cost. Te increase is funded by the 
institution; 
• Capilano University – Student Housing project’s year of completion was amended 
from 2025 to 2026 to reflect the revised project schedule; 
• Simon Fraser University – Digital Research Infrastructure Refresh - CEDAR project’s 
anticipated total cost increased from $90 million to $91 million to reflect final project 
cost;
• Te University of British Columbia – Recreation Centre North project’s anticipated 
total cost decreased from $73 million to $72 million to reflect final project cost; 
• Te University of British Columbia – School of Biomedical Engineering project’s 
anticipated total cost decreased from $139 million to $138 million to reflect final 
project cost; 
• Te University of British Columbia – Te Gateway Building project’s anticipated 
total cost increased from $195 million to $208 million to reflect final project cost. 
Te increase is funded by the institution; 
• University of the Fraser Valley – Student Housing project’s anticipated total cost 
increased from $105 million to $107 million to reflect final project cost. Te increase 
is funded by the institution; 

--- page 68 ---
THREE YEAR FISCAL PLAN
58 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
• Okanagan College – Centre for Food, Wine and Tourism project’s anticipated 
total cost increased from $57 million to $58 million to reflect revised project cost. 
Te increase is funded by the institution; 
• Capilano University – Squamish Student Housing project’s year of completion was 
amended from 2027 to 2028 to reflect the revised project schedule; 
• Te University of British Columbia – Canada’s Immuno-Engineering and 
Biomanufacturing Hub: Advanced Terapeutics Manufacturing Facility project’s year 
of completion was amended from 2030 to 2028 to align with revised project schedule; 
• Kwantlen Polytechnic University – Student Housing and Dining project’s year of 
completion was amended from 2029 to 2030 to reflect the revised project schedule; 
• Royal Columbian Hospital Redevelopment Phases 2 & 3 project’s anticipated total 
cost increased from $1.249 billion to $1.859 billion to reflect revised project cost. 
Internal borrowing increased from $1.148 billion to $1.782 billion and contributions 
from other sources increased from $65 million to $77 million. Te project’s year of 
completion was amended from 2026 to 2029 to reflect the revised project schedule; 
• New St. Paul’s Hospital project’s anticipated total cost increased from $2.180 billion 
to $2.266 billion to reflect revised project cost. Internal borrowing increased from 
$1.327 billion to $1.413 billion; 
• Nanaimo Long-Term Care project’s anticipated total cost increased from $286 million 
to $350 million to reflect revised project cost. Internal borrowing increased from 
$172 million to $236 million. Te project’s year of completion was amended from 
2027 to 2029 to reflect the revised project schedule; 
• Te Western Communities Long-Term Care project’s anticipated total cost increased 
from $224 million to $325 million to reflect revised project cost. Internal borrowing 
increased from $157 million to $258 million. Te project’s year of completion was 
amended from 2027 to 2029 to reflect the revised project schedule; 
• Highway 99 10-Mile Slide project’s total anticipated cost decreased from $88 million 
to $84 million to reflect project final cost. Internal borrowing decreased by $4 million; 
• West Fraser Road Realignment project’s anticipated total cost decreased from 
$94 million to $84 million to reflect project final cost. Internal borrowing decreased 
by $10 million; 
• Highway 1 Corridor – Falls Creek project’s anticipated total cost decreased from 
$143 million to $89 million to reflect final project cost. Internal borrowing decreased 
from $59 million to $5 million; 
• Highway 5 Corridor project’s anticipated total cost decreased from $350 million 
to $263 million to reflect revised project cost. Internal borrowing decreased from 
$111 million to $24 million; 
• Highway 1 Corridor – Nicomen Bridge project’s anticipated total cost decreased 
from $144 million to $100 million to reflect revised project cost. Internal borrowing 
decreased from $64 million to $20 million; 
• Highway 7 Widening – 266th St. to 287th St. project’s year of completion was 
amended from 2025 to 2026 to reflect the revised project schedule; 
• Highway 17 Keating Cross Overpass project’s year of completion was amended from 
2025 to 2026 to reflect the revised project schedule; 

--- page 69 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 59
THREE YEAR FISCAL PLAN
• Highway 99 / Steveston Interchange, Transit & Cycling Improvements project’s year 
of completion was amended from 2025 to 2026 to reflect the revised project schedule; 
• Pattullo Bridge Replacement project’s year of completion was amended from 2025 
to 2026 to reflect the revised project schedule; 
• Blackwater North Fraser Slide project’s year of completion was amended from 2026 
to 2027 to reflect the revised project schedule; 
• Cottonwood Hill at Highway 97 Slide project’s year of completion was amended from 
2026 to 2027 to reflect the revised project schedule; 
• Highway 1 Salmon Arm West project’s year of completion was amended from 2026 
to 2027 to reflect the revised project schedule; 
• Highway 95 Bridge Replacement project’s year of completion was amended from 2026 
to 2027 to reflect the revised project schedule; 
• Highway 1 Fraser Valley Corridor Improvements - Mount Lehman Road to 
Highway 11 project’s internal borrowing decreased from $2,651 million to 
$2,601 million while contributions from other sources increased to $50 million;
• BC Housing – 1015 Hastings St. Development project’s year of completion was 
amended from 2025 to 2026 to reflect the revised project schedule; 
• BC Housing – 128 to 134 East Cordova St. project’s anticipated total cost increased 
from $166 million to $173 million to reflect the revised project cost. Contributions 
from other sources increased from $103 million to $110 million; 
• BC Housing – 320 Hastings St. E. Redevelopment project’s year of completion was 
amended from 2025 to 2026 to reflect the revised project schedule; 
• BC Housing – Vancouver Parkside project’s year of completion was amended from 
2025 to 2026 to reflect the revised project schedule; 
• BC Housing – 1410 E King Edward Ave project’s year of completion was amended 
from 2026 to 2028 to reflect the revised project schedule; 
• Connect the Basin – high-speed internet infrastructure project’s anticipated total cost 
increased from $76 million to $96 million for an approved expansion of the project. 
Internal borrowing increased from $43 million to $63 million; 
• BC Hydro – Mica replace units 1 to 4 generator transformers project’s anticipated 
total cost decreased from $89 million to $86 million as the project contingency was 
not required; 
• BC Hydro – Various Sites - EV charging infrastructure implementation program’s 
anticipated total cost decreased from $73 million to $72 million as the project 
contingency was not required;  
• BC Hydro – Sperling substation metalclad switchgear replacement project’s anticipated 
total cost increased from $76 million to $83 million due to higher construction and 
engineering costs resulting from more complex as-found site conditions;  
• ICBC Head Office Relocation project’s anticipated total cost increased from 
$151 million to $152 million to reflect the revised project cost; and 
• A new section has been created to disclose projects with adjusted timelines as a result 
of the capital plan review. 

--- page 70 ---
THREE YEAR FISCAL PLAN
60 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table 1.8 Capital Expenditure Projects Greater Than $50 million 1
Note: Information in bold type denotes changes from the 2025/26  Second Quarterly Report released on November 27, 2025. 
Project
Estimated
Anticipated
Year of
Cost to
Cost to
Total
Internal/
P3
Federal
Other
($ millions)
Completion
Dec. 31, 2025
Complete
Cost
Borrowing
Liability
Gov't
Contrib'ns
Schools
Centennial Secondary 2 ……………………………………………
2017
60
                
1
            
61
            
61
          
-
        
-
          
-
          
New Westminster Secondary 2………………………………………
2021
98
                
9
            
107
          
107
        
-
        
-
          
-
          
Quesnel Junior School 2 ……………………………………………
2022
48
                
1
            
49
            
49
          
-
        
-
          
-
          
Stitó:s Lá:lém totí:lt Elementary Middle School 2 …………………
2022
53
                
-
            
53
            
48
          
-
        
-
          
5
          
Coast Salish Elementary 2 ……………………………………………
2023
28
                
10
          
38
            
33
          
-
        
-
          
5
          
Burnaby North Secondary 2 …………………………………………
2024
117
              
-
            
117
          
108
        
-
        
-
          
9
          
Eric Hamber Secondary 2 ……………………………………………
2024
94
                
12
          
106
          
94
          
-
        
-
          
12
        
Victoria High School 2 ………………………………………………
2024
100
              
-
            
100
          
97
          
-
        
-
          
3
          
Cedar Hill Middle ……………………………………………………
2025
39
                
15
          
54
            
50
          
-
        
-
          
4
          
Cowichan Secondary 2 ………………………………………………
2025
85
                
1
            
86
            
84
          
-
        
-
          
2
          
Henry Hudson Elementary …………………………………………
2025
41
                
19
          
60
            
49
          
-
        
-
          
11
        
North East Latimer Elementary ……………………………………
2025
37
                
15
          
52
            
52
          
-
        
-
          
-
          
Carson Elementary …………………………………………………
2026
33
                
28
          
61
            
61
          
-
        
-
          
-
          
New Cloverley Elementary  …………………………………………
2026
31
                
33
          
64
            
61
          
-
        
-
          
3
          
Sníne Elementary 
- (formerly Pineview Valley Elementary) …………………………
2026
39
                
26
          
65
            
65
          
-
        
-
          
-
          
Burke Mountain Secondary …………………………………………
2027
86
                
74
          
160
          
135
        
-
        
-
          
25
        
George Pringle Secondary 
- (formerly Westside Secondary) ……………………………………
2027
73
                
51
          
124
          
121
        
-
        
-
          
3
          
La Vallée (Pemberton) Elementary …………………………………
2027
21
                
45
          
66
            
66
          
-
        
-
          
-
          
New East Side Elementary …………………………………………
2027
11
                
48
          
59
            
59
          
-
        
-
          
-
          
Prince Rupert Middle …………………………………………………
2027
18
                
109
        
127
          
127
        
-
        
-
          
-
          
Smith Middle and Secondary …..................................................
2027
25
                
281
        
306
          
306
        
-
        
-
          
-
          
Cameron Elementary ………………………………………………
2028
4
                  
64
          
68
            
68
          
-
        
-
          
-
          
Guildford Park Secondary …………………………………………
2028
8
                  
57
          
65
            
60
          
-
        
-
          
5
          
John Diefenbaker Elementary ………………………………………
2028
3
                  
50
          
53
            
53
          
-
        
-
          
-
          
Mission Secondary …………………………………………………
2028
7
                  
169
        
176
          
175
        
-
        
-
          
1
          
Montgomery Middle …………………………………………………
2028
2
                  
85
          
87
            
87
          
-
        
-
          
-
          
Simcoe Elementary …………………………………………………
2028
1
                  
64
          
65
            
65
          
-
        
-
          
-
          
Tamanawis Secondary ………………………………………………
2028
7
                  
50
          
57
            
52
          
-
        
-
          
5
          
Clayton Heights Secondary  …………………………………………
2029
-
                   
90
          
90
            
89
          
-
        
-
          
1
          
Fleetwood Park Secondary …………………………………………
2029
1
                  
78
          
79
            
79
          
-
        
-
          
-
          
Olympic Village Elementary …………………………………………
2029
2
                  
149
        
151
          
151
        
-
        
-
          
-
          
Pitt Meadows Secondary ……………………………………………
2029
1
                  
143
        
144
          
144
        
-
        
-
          
-
          
Beausoleil (Landsdowne) …………………………………………
2030
-
                   
73
          
73
            
73
          
-
        
-
          
-
          
Burtch Road Middle School …………………………………………
2030
-
                   
101
        
101
          
101
        
-
        
-
          
-
          
North Langford Secondary …………………………………………
2030
-
                   
219
        
219
          
219
        
-
        
-
          
-
          
Seismic mitigation program 3 ………………………………………
2030
1,910
           
116
        
2,026
       
2,026
     
-
        
-
          
-
         
Total schools ………………………………………………………
 
3,083
           
2,286
    
5,369
       
5,275
     
-
        
-
          
94
        
Post-secondary institutions
University of Victoria – Student Housing 2 ……………….….……
2023
243
              
-
            
243
          
128
        
-
        
-
          
115
      
Okanagan College – Student Housing 2 ……………….….………
2024
72
                
2
            
74
            
73
          
-
        
-
          
1
          
British Columbia Institute of Technology 
– Student Housing 2 ………….....................................................
2025
143
              
1
            
144
          
129
        
-
        
-
          
15
        
North Island College – Student Housing 2 …………………………
2025
77
                
1
            
78
            
76
          
-
        
-
          
2
          
Royal Roads University – West Shore Learning Centre 2 ………
2025
103
              
5
            
108
          
88
          
-
        
-
          
20
        
Simon Fraser University
– Digital Research Infrastructure Refresh - CEDAR 2 ………….
2025
88
                
3
            
91
            
25
          
-
        
41
       
25
        
University of the Fraser Valley – Student Housing 2 ……………
2025
101
              
6
            
107
          
88
          
-
        
-
          
19
        
Post-secondary institutions projects are continued on the next page
Project Financing

--- page 71 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 61
THREE YEAR FISCAL PLAN
Table 1.8 Capital Expenditure Projects Greater Than $50 million 1
Note: Information in bold type denotes changes from the 2025/26  Second Quarterly Report released on November 27, 2025. 
Project
Estimated
Anticipated
Year of
Cost to
Cost to
Total
Internal/
P3
Federal
Other
($ millions)
Completion
Dec. 31, 2025
Complete
Cost
Borrowing
Liability
Gov't
Contrib'ns
Post-secondary institutions projects continued
The University of British Columbia  
– Recreation Centre North 2 …………………………………………
2025
72
                
-
            
72
            
-
             
-
        
-
          
72
        
– School of Biomedical Engineering 2 ……………….….……….…
2025
137
              
1
            
138
          
25
          
-
        
-
          
113
      
– The Gateway Building 2 ……………………………………………
2025
199
              
9
            
208
          
-
             
-
        
-
          
208
      
Capilano University – Student Housing ……………………………
2026
44
                
14
          
58
            
41
          
-
        
-
          
17
        
The University of British Columbia  
– xࡊԥl sic snpaxࡊnwixއtn - UBCO ……………………………………
2026
67
                
52
          
119
          
-
             
-
        
-
          
119
      
University of Victoria  
– Engineering and Computer Science Building Expansion ………
2026
79
                
71
          
150
          
97
          
-
        
-
          
53
        
Douglas College – Academic and Student Housing ……………
2027
94
                
238
        
332
          
232
        
-
        
-
          
100
      
Okanagan College – Centre for Food, Wine and Tourism …….…
2027
12
                
46
          
58
            
52
          
-
        
-
          
6
          
Simon Fraser University – Student Housing Phase 3 ……………
2027
33
                
164
        
197
          
132
        
-
        
-
          
65
        
The University of British Columbia  
– Sauder School of Business Power House Expansion …………
2027
33
                
118
        
151
          
-
             
-
        
-
          
151
      
– UBCO Downtown Kelowna Project ………………………………
2027
-
                   
54
          
54
            
-
             
-
        
-
          
54
        
Vancouver Island University – Student Housing and Dining ……
2027
36
                
71
          
107
          
106
        
-
        
-
          
1
          
British Columbia Institute of Technology  
– Trades and Technology Complex ……………….….……….….
2028
18
                
200
        
218
          
186
        
-
        
1
         
31
        
Camosun College - Student Housing ……………….….……….…
2028
3
                  
152
        
155
          
152
        
-
        
-
          
3
          
Capilano University – Squamish Student Housing ………………
2028
53
                
2
            
55
            
48
          
-
        
-
          
7
          
The University of British Columbia  
 – Canada's Immuno-Engineering and Biomanufacturing
 Hub: Advanced Therapeutics Manufacturing Facility …………
2028
6
                  
64
          
70
            
22
          
-
        
42
       
6
          
Vancouver Community College
– Centre for Clean Energy & Automotive Innovation ……………
2028
75
                
240
        
315
          
295
        
-
        
-
          
20
        
The University of British Columbia  
 – Student Housing - Lower Mall Precinct …………………………
2029
8
                  
552
        
560
          
300
        
-
        
-
          
260
      
Kwantlen Polytechnic University
– Student Housing and Dining …................................................
2030
1
                  
142
        
143
          
118
        
-
        
-
          
25
        
Simon Fraser University
– Medical School Permanent Facility ……………….….……….…
2030
1 
520
 
521
 
496
 
- 
- 
25
Total post-secondary institutions …………..……………………
 
1,798
           
2,728
    
4,526
       
2,909
     
-
        
84
       
1,533
  
Health facilities
Red Fish Healing Centre for Mental Health 
and Addiction - șԥqiݦܽԥwݦԥnԥq lelԥm 2 …………….….………
2021
130
              
1
            
131
          
131
        
-
        
-
          
-
          
Clinical and Systems Transformation ………………………………
2025
844
              
-
            
844
          
702
        
-
        
-
          
142
      
iHealth Project – Vancouver Island Health Authority 2 ……………
2025
165
              
-
            
165
          
55
          
-
        
-
          
110
      
Lions Gate Hospital – New Acute Care Facility 2 …………………
2025
293
              
33
          
326
          
160
        
-
        
-
          
166
      
Ksyen Regional Hospital 
(formerly Mills Memorial Hospital Replacement) 2 ……………
2025
627
              
6
            
633
          
510
        
-
        
-
          
123
      
Nanaimo Regional General Hospital
– ICU/HAU Redevelopment ……….............................................
2025
45
                
15
          
60
            
22
          
-
        
-
          
38
        
Nats'oojeh Hospital and Health Centre 
(formerly Stuart Lake Hospital Replacement) 2 …………….….…
2025
150
              
8
            
158
          
140
        
-
        
-
          
18
        
Surrey Memorial Hospital
 – Hemodialysis Renal Centre …................................................
2026
46
                
39
          
85
            
84
          
-
        
-
          
1
          
 – Interventional Cardiology and Interventional Radiology ….....
2026
42
                
55
          
97
            
97
          
-
        
-
          
-
          
University Hospital of Northern BC Redevelopment
Phase 1 – Site Preparation ………...........................................
2026
45
                
58
          
103
          
62
          
-
        
-
          
41
        
+ealth projects are continued on the next page
Project Financing

--- page 72 ---
THREE YEAR FISCAL PLAN
62 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table 1.8 Capital Expenditure Projects Greater Than $50 million 1
Note: Information in bold type denotes changes from the 2025/26  Second Quarterly Report released on November 27, 2025. 
Project
Estimated
Anticipated
Year of
Cost to
Cost to
Total
Internal/
P3
Federal
Other
($ millions)
Completion
Dec. 31, 2025
Complete
Cost
Borrowing
Liability
Gov't
Contrib'ns
+ealth projects continued
Burnaby Hospital Redevelopment – Phase 1 ……………………
2027
480
              
153
        
633
          
599
        
-
        
-
          
34
        
Cowichan District Hospital Replacement …………….….……….
2027
786
              
660
        
1,446
       
1,148
     
-
        
-
          
298
      
Dawson Creek and District Hospital Replacement …………….…
2027
388
              
202
        
590
          
413
        
-
        
-
          
177
      
Immunization BC Digital Platform …………………………………
2027
64
                
11
          
75
            
75
          
-
        
-
          
-
          
New St. Paul's Hospital ………………………………………………
2027
1,795
           
471
        
2,266
       
1,413
     
-
        
-
          
853
      
Richmond Long-Term Care …………………………………………
2027
2
                  
176
        
178
          
178
        
-
        
-
          
-
          
Royal Inland Hospital Phil and Jennie Gaglardi Tower
– Direct procurement …………………………………………………
2027
143
              
59
          
202
          
112
        
-
        
-
          
90
        
– P3 contract …………………………………………………………
2022
288
              
-
            
288
          
-
             
164
   
-
          
124
      
Centre for Children and Youth Living with Health Complexity …
2028
59
                
251
        
310
          
224
        
-
        
-
          
86
        
East Kootenay Regional Hospital 
– Oncology and Renal Redevelopment …..................................
2028
-
                   
59
          
59
            
-
             
-
        
-
          
59
        
Kamloops Cancer Centre ……………………………………………
2028
22
                
364
        
386
          
341
        
-
        
-
          
45
        
Nanaimo Cancer Centre ……………………………………………
2028
18
                
311
        
329
          
307
        
-
        
-
          
22
        
St. Vincent's Heather Long-Term Care ……………………………
2028
28
                
281
        
309
          
309
        
-
        
-
          
-
          
Cariboo Memorial Hospital Redevelopment ………………………
2029
194
              
173
        
367
          
257
        
-
        
-
          
110
      
Nanaimo Long-Term Care …………………………………………
2029
2
                  
348
        
350
          
236
        
-
        
-
          
114
      
New Surrey Hospital and BC Cancer Centre …………….….……
2029
1,030
           
1,851
    
2,881
       
2,816
     
-
        
-
          
65
        
Royal Columbian Hospital Redevelopment Phases 2 & 3 …….…
2029
977
              
882
        
1,859
       
1,782
     
-
        
-
          
77
        
St. Paul's Hospital Clinical Support and Research Centre ………
2029
86
                
704
        
790
          
476
        
-
        
-
          
314
      
Vancouver General Hospital – 
Operating Rooms Renewal - Phase 2 …………………………
2029
126
              
297
        
423
          
396
        
-
        
-
          
27
        
Victoria General Hospital - Electrical Energy Centre …........
2029
-
                   
76
          
76
            
33
          
-
        
-
          
43
        
Western Communities Long-Term Care …………….….……….…
2029
3
                  
322
        
325
          
258
        
-
        
-
          
67
        
Dr. F.W. Green Memorial Home ….............................................
2030
6
                  
230
        
236
          
143
        
-
        
-
          
93
        
University Hospital of Northern BC Redevelopment 
Phase 2 – Acute Care Tower …..............................................
2031
5
                  
1,574
    
1,579
       
1,246
     
-
        
-
          
333
      
Richmond Hospital Redevelopment ………………………………
2033
47
                
1,912
    
1,959
       
1,889
     
-
        
-
          
70
       
Total health facilities ………………………………………………
 
8,936
           
11,582
  
20,518
     
16,614
   
164
   
-
          
3,740
  
Transportation
Highway 99 10-Mile Slide 2……………………………………..……
2021
82
                
2
            
84
            
84
          
-
        
-
          
-
          
Highway 4 Kennedy Hill Safety Improvements 2 …………….….…
2022
57
                
10
          
67
            
53
          
14
       
-
          
Highway 91 to Highway 17 and Deltaport Way 
Corridor improvements 2 ………………………………….….……
2023
250
              
10
          
260
          
87
          
-
        
82
       
91
        
West Fraser Road Realignment 2 …………….….……….…..……
2023
84
                
-
            
84
            
72
          
-
        
12
       
-
          
Highway 1 Corridor – Falls Creek 2 …........................................
2024
86
                
3
            
89
            
5
            
-
        
84
       
-
          
Highway 1 Kicking Horse Canyon Phase 4 2 ………………………
2024
595
              
6
            
601
          
386
        
-
        
215
     
-
          
Highway 1 Quartz Creek Bridge Replacement 2 …………………
2024
103
              
16
          
119
          
69
          
-
        
50
       
-
          
Highway 5 Corridor 2 …...............................................................
2024
253
              
10
          
263
          
24
          
-
        
239
     
-
          
BC Transit Victoria HandyDART Facility 2 …..............................
2025
73
                
11
          
84
            
41
          
-
        
21
       
22
        
Highway 1 Chase Four-Laning 2 …………….….……….…..……
2025
159
              
37
          
196
          
184
        
-
        
12
       
-
          
Highway 1 Corridor – Nicomen Bridge 2 ….................................
2025
94
                
6
            
100
          
20
          
-
        
80
       
-
          
Highway 1 Corridor – Tank Hill …...............................................
2026
145
              
148
        
293
          
218
        
-
        
75
       
-
          
Highway 1 Ford Road to Tappen Valley Road Four-Laning ……
2026
190
              
53
          
243
          
161
        
-
        
82
       
-
          
Highway 7 Widening – 266th St. to 287th St. …………….….……
2026
107
              
23
          
130
          
101
        
-
        
29
       
-
          
Highway 17 Keating Cross Overpass ………………………………
2026
67
                
10
          
77
            
58
          
-
        
17
       
2
          
Highway 99 / Steveston Interchange,
Transit & Cycling Improvements …………………………………
2026
85
                
52
          
137
          
137
        
-
        
-
          
-
          
7ransportation projects are continued on the next page
Project Financing

--- page 73 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 63
THREE YEAR FISCAL PLAN
Table 1.8 Capital Expenditure Projects Greater Than $50 million 1
Note: Information in bold type denotes changes from the 2025/26  Second Quarterly Report released on November 27, 2025. 
Project
Estimated
Anticipated
Year of
Cost to
Cost to
Total
Internal/
P3
Federal
Other
($ millions)
Completion
Dec. 31, 2025
Complete
Cost
Borrowing
Liability
Gov't
Contrib'ns
7ransportation projects continued
Highway 8 Corridor ….................................................................
2026
57
                
173
        
230
          
220
        
-
        
10
       
-
          
Kootenay Lake ferry service upgrade ………………………….....
2026
84
                
33
          
117
          
100
        
-
        
17
       
-
          
Pattullo Bridge Replacement ……………………………………...
2026
1,197
           
440
        
1,637
       
1,637
     
-
        
-
          
-
          
Quesnel-Hydraulic Road Slide …................................................
2026
5
                  
75
          
80
            
80
          
-
        
-
          
-
          
Blackwater North Fraser Slide …................................................
2027
18
                
185
        
203
          
192
        
-
        
11
       
-
          
Broadway Subway 4 …………………………………………………
2027
2,106
           
848
        
2,954
       
1,957
     
-
        
897
     
100
      
Cottonwood Hill at Highway 97 Slide …......................................
2027
34
                
301
        
335
          
313
        
-
        
22
       
-
          
Highway 1 Salmon Arm West 5 ……………………………………
2027
93
                
47
          
140
          
109
        
-
        
31
       
-
          
Highway 1 Bus on Shoulder 
McKenzie to Colwood Interchange …......................................
2027
19
                
76
          
95
            
68
          
-
        
27
       
-
          
Highway 1 Jumping Creek to MacDonald …...............................
2027
101
              
144
        
245
          
199
        
-
        
46
       
-
          
Highway 1 R.W. Bruhn Bridge ………………………………………
2027
138
              
122
        
260
          
169
        
-
        
91
       
-
          
Highway 1 Sackum Overhead Bridge Replacement …...............
2027
12
                
81
          
93
            
93
          
-
        
-
          
-
          
Highway 1 Selkirk …...................................................................
2027
29
                
100
        
129
          
97
          
-
        
32
       
-
          
Highway 95 Bridge Replacement …...........................................
2027
38
                
52
          
90
            
61
          
-
        
29
       
-
          
Belleville Terminal Redevelopment …........................................
2028
71
                
345
        
416
          
371
        
-
        
45
       
-
          
Highway 1 Fraser Valley Corridor Improvements 
264th St. to Mount Lehman Road ………………………………
2028
474
              
1,776
    
2,250
       
2,250
     
-
        
-
          
-
          
Agassiz-Rosedale Bridge Repair Project ………………………
2029
-
                   
64
          
64
            
64
          
-
        
-
          
-
          
Highway 1  216th St. to 264th St. widening ………………..………
2029
156
              
324
        
480
          
383
        
-
        
97
       
-
          
Surrey Langley SkyTrain Project …………….….……….…..……
2029
2,067
           
3,929
    
5,996
       
4,441
     
-
        
1,306
  
249
      
Fraser River Tunnel Project 6 ……………….….……….…..………
2030
398
              
3,750
    
4,148
       
4,148
     
-
        
-
          
-
          
Highway 1 Fraser Valley Corridor Improvements 
Mount Lehman Road to Highway 11 ……………………………
2031
116
              
2,535
    
2,651
      
2,601
     
-
        
-
          
50
       
Total transportation ………………………………………………
 
9,643
           
15,797
  
25,440
     
21,253
   
-
        
3,673
  
514
      
Housing
58 W Hastings 2 …………….….……….…..………………………
2024
154
              
6
            
160
          
67
          
-
        
21
       
72
        
1015 Hastings St. Development ….............................................
2026
131
              
20
          
151
          
95
          
-
        
37
       
19
        
128 to 134 East Cordova St. …………….….……….…..…………
2026
65
                
108
        
173
          
36
          
-
        
27
       
110
      
320 Hastings St. E. Redevelopment ….......................................
2026
73
                
13
          
86
            
49
          
-
        
5
         
32
        
Vancouver Parkside …................................................................
2026
51
                
3
            
54
            
54
          
-
        
-
          
-
          
296 Angela Drive …………….….……….…..………………………
2027
146
              
75
          
221
          
150
        
-
        
42
       
29
        
1410 E King Edward Ave …………….….……….…..……………
2028
3
                  
76
          
79
            
73
          
-
        
-
          
6
          
Clark & 1st Ave …………….….……….…..…………………………
2028
45
                
143
        
188
          
32
          
-
        
121
     
35
        
1451 Bertram St …………….….……….…..………………………
2029
2
                  
118
        
120
          
120
        
-
        
-
          
926 & 930 Pandora Ave …………….….……….…..………………
2029
6
                  
147
        
153
          
132
        
-
        
6
         
15
        
343 W Pender St. …………….….……….…..……………………
2029
-
                   
71
          
71
            
58
          
-
        
-
          
13
       
Total housing ………………………………………………………
 
676
              
780
        
1,456
       
866
        
-
        
259
     
331
      
Other taxpayer-supported
Nanaimo Correctional Centre Replacement 2 ……………………
2024
180
              
1
            
181
          
181
        
-
        
-
          
-
          
FIFA World Cup 2026 - Stadium Capital Improvements ............
2026
79
                
30
          
109
          
109
        
-
        
-
          
-
          
Provincial Archives, Research and  Collections Campus
(formerly RBCM Collections and Research Building) …………
2026
213
              
57
          
270
          
270
        
-
        
-
          
-
          
Connect the Basin –  high-speed internet infrastructure …………
2027
3
                  
93
          
96
            
63
          
-
        
29
       
4
          
Plant and Animal Health Centre ……………………....................
2031
-
                   
496
        
496
          
496
        
-
        
-
          
-
         
Total other taxpayer-supported …………………………………
 
475
              
677
        
1,152
       
1,119
     
-
        
29
       
4
         
Project Financing

--- page 74 ---
THREE YEAR FISCAL PLAN
64 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table 1.8 Capital Expenditure Projects Greater Than $50 million 1
Note: Information in bold type denotes changes from the 2025/26  Second Quarterly Report released on November 27, 2025. 
Project
Estimated
Anticipated
Year of
Cost to
Cost to
Total
Internal/
P3
Federal
Other
($ millions)
Completion
Dec. 31, 2025
Complete
Cost
Borrowing
Liability
Gov't
Contrib'ns
Approved projects with adjusted timelines
Abbotsford Long-Term Care …………….….……….…..…………
TBC
25
                
186
        
211
          
157
        
-
        
-
          
54
        
Burnaby Hospital Redevelopment – Phase 2 
and BC Cancer Centre ……………………………………………
TBC
45
                
1,770
    
1,815
       
1,771
     
-
        
-
          
44
        
Campbell River Long-Term Care …………….….……….…..……
TBC
1
                  
133
        
134
          
80
          
-
        
-
          
54
        
Chilliwack Long-Term Care …....................................................
TBC
8
                  
266
        
274
          
246
        
-
        
-
          
28
        
Cottonwoods Long-Term Care Replacement ….........................
TBC
2
                  
185
        
187
          
112
        
-
        
-
          
75
        
Delta Long-Term Care ………………………………………………
TBC
15
                
165
        
180
          
162
        
-
        
-
          
18
        
Fort St. John Long-Term Care …................................................
TBC
-
                   
155
        
155
          
109
        
-
        
-
          
46
        
Squamish (Hilltop) Long-Term Care ….......................................
TBC
-
                   
286
        
286
          
286
        
-
        
-
          
-
          
University of Victoria – Student Housing Expansion ……………
2034
3
                  
175
        
178
          
121
        
-
        
-
          
57
       
Total approved projects with adjusted timelines ………………
 
99
                
3,321
    
3,420
       
3,044
     
-
        
-
          
376
     
Total taxpayer-supported …………….….………
24,710
         
37,171
 
61,881
     
51,080
   
164
   
4,045
 
6,592
Power generation and transmission
BC Hydro
– Mica replace units 1-4 generator transformers project 2 ………
2022
85
                
1
            
86
            
86
          
-
        
-
          
-
          
– Lake Buntzen 1 Coquitlam tunnel gates
refurbishment project 2 …………….….……….…..………………
2023
65
                
9
            
74
            
74
          
-
        
-
          
-
          
– Wahleach refurbish generator project 2 …………….….………
2023
58
                
3
            
61
            
61
          
-
        
-
          
-
          
– Bridge River 1 - penstock concrete foundation 
refurbishment project 2 .….......................................................
2024
63
                
-
            
63
            
63
          
-
        
-
          
-
          
– Capilano substation upgrade project 2 …………….….……….…
2024
76
                
1
            
77
            
77
          
-
        
-
          
-
          
– G.M. Shrum G1 to 10 control system upgrade 2 …………….…
2024
73
                
3
            
76
            
76
          
-
        
-
          
-
          
– Natal - 60-138 kV switchyard upgrade project 2 …………….…
2025
77
                
8
            
85
            
85
          
-
        
-
          
-
          
– Site C project 2, 7 …………….….……….…..……………………
2025
14,822
         
1,178
    
16,000
     
16,000
   
-
        
-
          
-
          
– Vancouver Island radio system project 2 …………….….………
2025
55
                
3
            
58
            
57
          
-
        
-
          
1
          
– Various Sites - EV charging infrastructure
implementation program 2 .......................................................
2025
72
                
-
            
72
            
54
          
-
        
10
       
8
          
– 2L143 - cable replacement project …………............................
2026
28
72
          
100
          
100
        
-
        
-
          
-
          
– 2L333 - load interconnection - Enbridge APP CS16 …............
2026
65
67
          
132
          
71
          
-
        
15
       
46
        
– Cheakamus recoat units 1 and 2 penstocks
(interior and exterior) project …...............................................
2026
46
7
            
53
            
53
          
-
        
-
          
-
          
– Comox - Puntledge flow control improvements project ……....
2026
50
3
            
53
            
53
          
-
        
-
          
-
          
– Fort Nelson - regional reliability improvement project .............
2026
38
                
20
          
58
            
58
          
-
        
-
          
-
          
– Goldstream - property purchase …......................................
2026
1
                  
60
          
61
            
61
          
-
        
-
          
-
          
– Mainwaring station upgrade project …………….….……….….
2026
95
                
59
          
154
          
154
        
-
        
-
          
-
          
– Mica townsite apartment accommodation project ...................
2026
41
                
26
          
67
            
67
          
-
        
-
          
-
          
– Ruskin - left abutment slope sinkhole 
remediation project …………….….……….…..…………………
2026
76
                
53
          
129
          
129
        
-
        
-
          
-
          
– 1L037 Jervis and Agamemnon crossings project …..............…
2027
16
                
48
          
64
            
64
          
-
        
-
          
-
          
– 1L243 transmission load increase (HVC) project ....................
2027
38
                
104
        
142
          
139
        
-
        
-
          
3
          
– Distribution design modernization project ………....................
2027
14
                
40
          
54
            
54
          
-
        
-
          
-
          
– Fleetwood - Distribution load interconnection 
(SLS Servicing) project …........................................................
2027
27
                
131
        
158
          
77
          
-
        
-
          
81
        
– Kimberley to Marysville - substation relocation project …........
2027
8
                  
65
          
73
            
73
          
-
        
-
          
-
          
– Long Lake terminal station - transmission load
interconnection project ..........…………………….....................
2027
33
                
47
          
80
            
79
          
-
        
-
          
1
          
– Materials classification facility project …..................................
2027
35
                
41
          
76
            
76
          
-
        
-
          
-
          
– Minette - transmission load interconnection project ………….…
2027
23
                
49
          
72
            
52
          
-
        
-
          
20
        
– Public EV charging - light-duty program 8 …………….….…
2027
55
                
75
          
130
          
130
        
-
        
TBD
TBD
– Sperling substation metalclad switchgear
replacement project …………….….……….…..…………………
2027
65
                
18
          
83
            
83
          
-
        
-
          
-
          
PoZer generation and transPission projects are continued on the next page
Project Financing

--- page 75 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 65
THREE YEAR FISCAL PLAN
Table 1.8 Capital Expenditure Projects Greater Than $50 million 1
Note: Information in bold type denotes changes from the 2025/26  Second Quarterly Report released on November 27, 2025. 
Project
Estimated
Anticipated
Year of
Cost to
Cost to
Total
Internal/
P3
Federal
Other
($ millions)
Completion
Dec. 31, 2025
Complete
Cost
Borrowing
Liability
Gov't
Contrib'ns
PoZer generation and transPission projects continued
– Clayburn - substation upgrade (2nd phase) project ……….....
2028
6
                  
51
          
57
            
57
          
-
        
-
          
-
          
– Ladore spillway seismic upgrade project ………......................
2028
116
              
257
        
373
          
373
        
-
        
-
          
-
          
– Mica - U1 - U4 circuit breaker and iso-phase bus
replacement project ….............................................................
2028
41
                
135
        
176
          
176
        
-
        
-
          
-
          
– Northwest - substations outage mitigation project ………........
2028
27
                
62
          
89
            
87
          
-
        
-
          
2
          
– Peace to Kelly Lake stations sustainment project …………….
2028
148
              
196
        
344
          
344
        
-
        
-
          
-
          
– Prince George to Terrace capacitors project …………….….…
2028
252
              
330
        
582
          
481
        
-
        
97
       
4
          
– Treaty Creek Terminal - transmission load
interconnection (KSM) project …………….….……….…..……
2028
100
              
68
          
168
          
81
          
-
        
-
          
87
        
– Burrard switchyard - control building upgrade project …………
2029
6
                  
51
          
57
            
57
          
-
        
-
          
-
          
– John Hart dam seismic upgrade project …………….….………
2029
436
              
476
        
912
          
912
        
-
        
-
          
-
          
– Kootenay Canal modernize controls project …………….….…
2029
30
                
31
          
61
            
61
          
-
        
-
          
-
          
– McLellan - substation upgrade project …………….….………
2029
12
                
65
          
77
            
77
          
-
        
-
          
-
          
– Mount Pleasant substation - transformer and feeder 
sections addition project …......................................................
2029
6
                  
84
          
90
            
90
          
-
        
-
          
-
          
– Victoria secondary network replacement project ….................
2029
2
                  
113
        
115
          
115
        
-
        
-
          
-
          
– Bridge River 1 - recoat penstocks 1-4 project …………….…
2030
8
                  
118
        
126
          
126
        
-
        
-
          
-
          
– Strathcona discharge upgrade project ….................................
2030
76
                
490
        
566
          
566
        
-
        
-
          
-
          
– Newell substation upgrade project …………….….……….…
2031
14
                
181
        
195
          
195
        
-
        
-
          
-
          
– Bridge River 1 replace units 1-4  generators/
-
            
governors project …………….….……….…..……………………
2032
30
                
283
        
313
          
313
        
-
        
-
          
-
         
Total power generation and transmission ………………………
 
17,510
         
5,182
    
22,692
     
22,317
   
-
        
122
     
253
      
Other self-supported
ICBC Head Office Relocation …………….….……….…..…………
2028
2
                 
150
       
152
         
152
       
-
        
-
          
-
         
Total self-supported …………….….……….….
17,512
         
5,332
    
22,844
     
22,469
   
-
        
122
     
253
     
Total projects over $50 million …………….….
42,222
         
42,503
 
84,725
     
73,549
   
164
   
4,167
 
6,845
1
2
3
4
5
6
7
8
The tunnel project is in design, and the estimated cost of the project is being updated and reviewed as the design and contract negotiations progress. Due to 
commercial sensitivities related to releasing an updated estimate for the project before a contract is executed, the Province will update the project budget and schedule 
once negotiations with the contractor have concluded.
Project Financing
Only projects that receive provincial funding and have been approved by Treasury Board and/or Crown corporation boards are included in this table.  Ministry service 
plans may highlight projects that still require final approval. Capital costs reflect current government accounting policy. 
Assets have been put into service and only trailing costs remain.
The Seismic Mitigation Program consists of spending to date on Phase 2 of the program and may include spending on projects greater than $50 million included in the 
table.
The Broadway Subway Project forecast and value of costs incurred to date include the City of Vancouver in-kind contribution of land rights, in keeping with the 
approved project budget. Under current government accounting, purchased intangible assets are given accounting recognition, and contributed intangible assets, such 
as land use rights or licenses are not.
Project is delivered in two segments, the Salmon Arm West 1st Ave to 10th Ave reached substantial completion in 2023 and the Salmon Arm West 10th Ave to 10th St. 
is expected to complete in 2027.
The approved project cost estimate (June 2021) is $16 billion, with an approved project in-service date of 2025. The project is now in-service with only trailing costs 
and wrap-up work remaining on the project. The anticipated project cost and costs to date include capital costs, charges subject to regulatory deferral and certain 
operating expenditures.
The total cost represents the gross cost of the project and has not been netted for provincial and federal government contributions. The provincial and federal 
government contribution amounts are dependent on the final actual project costs and what costs are eligible under the agreement

--- page 76 ---
THREE YEAR FISCAL PLAN
66 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
%Xilding a 6ecXre and 6Xstainable %&
Investment in Critical Infrastructure for 
British Columbia 
Te Province is continuing to build record 
levels of infrastructure to meet the needs of 
British Columbians. From schools and hospitals 
to roads, transit and housing, over the next 
three years, Government is projecting to spend 
nearly $38 billion and continue construction 
on projects throughout the province, including:
• 17 major hospitals and acute care facilities, 
like the Cowichan District Hospital, the 
redevelopment of Dawson Creek and 
District Hospital, the New St. Paul’s 
Hospital, the redevelopment of Richmond 
Hospital, a new hospital and cancer centre in 
Surrey, and new cancer centres in Nanaimo 
and Kamloops. 
• Transit expansions such as the Broadway 
Subway project and the Surrey Langley 
SkyTrain, and critical highway and goods 
movement infrastructure such as the Fraser 
Valley Highway 1 Corridor Improvement 
Program and the Fraser River Tunnel project. 
• 66 K-12 school additions and improvements 
that will add 23,600 new student spaces, 
and almost 6,000 seismically safe seats, 
including Olympic Village Elementary, 
Mission Secondary, Prince Rupert Middle, 
and Smith Middle and Secondary.
• Student housing projects that will add 3,900 
new beds at post-secondary institutions, 
including Douglas College, the University 
of British Columbia, and Vancouver Island 
University. 
• A new medical school at Simon Fraser 
University, the first medical school to open 
in western Canada in nearly 60 years.
Strategically Sequencing Projects
Since 2017, Government has significantly 
increased annual capital investments to 
fill infrastructure deficits and deliver the 
infrastructure and services British Columbians 
depend upon. Trough ambitious capital 
planning, Government is expanding health 
system capacity, replacing aging schools, 
keeping British Columbians moving on 
transportation and transit networks, and 
building more affordable homes to help address 
the housing crisis. 
After years of building infrastructure to close 
gaps and strengthen services, B.C. is adjusting 
the pace of the capital plan to continue to build 
the schools, hospitals, and transit people need 
in a sustainable way in the face of new global 
pressures.
Tere are pressures on Government’s fiscal 
and debt outlook. In addition, the ongoing 
trade war and tariff threats continue to drive 
global instability. Material and labour costs 
have remained persistently high. Tese create 
conditions where Government must make 
careful choices on its capital plan in the 
long-term.
Sustained investments in new hospitals, 
hospital expansions and complex transportation 
and transit projects, in particular, consume 
a large part of the existing capital plan. Te 
number of contractors for projects of this 
complexity is limited. Delivering multiple 
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
15/16
16/17
17/18
18/19
19/20
20/21
21/22
22/23
23/24
24/25
25/26 1
&Kart  ± 7a[Sayer 6XSSorted &aSital 
6Sending 6ince   billions
1 Projected spending for 2025/26

--- page 77 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 67
THREE YEAR FISCAL PLAN
major projects at the same time means 
Government’s ability to fund other capital 
priorities in a sustainable manner is constricted 
(see Chart 2). Furthermore, it leads to a boom 
and bust cycle of capital investment and 
increases risks associated with having to replace 
infrastructure at the same time in the future. 
A key component of sustaining Government’s 
capital plan will be to strategically sequence 
major projects over a longer-term and where 
possible, redesign projects to lower costs. 
Tis will allow infrastructure investments to 
continue over the longer-term, providing more 
fiscal sustainability and predictability. 
For Budget 2026, Government reviewed its 
capital plan as part of efforts to maintain the 
province’s debt-to-GDP ratio among the best 
in Canada. Spending projections were adjusted 
to more accurately reflect the timing of project 
spending and contributions from the federal 
government. Project timelines were re-assessed. 
Tis resulted in a need to adjust the timing of 
some projects. 
A listing of approved projects with adjusted 
timelines can be found on page 64. 
Government remains committed to delivering 
urgently needed infrastructure and will be 
working to determine how to better sequence 
and deliver these capital projects.
Maintaining Strong Levels of Capital 
Spending 
Projected capital spending over the next three 
years exceeds prior year spending and will 
continue to support the Province’s economy 
and provide good paying jobs for British 
Columbians. B.C.’s projected capital spending 
for 2026/27 remains among the highest per 
capita against provincial peers. Per capita capital 
spending is expected to be $2,401 in 2026/27. 
Tis remains higher than per capita capital 
spending amongst provincial peers like Alberta, 
Ontario and Quebec as expressed in their 2025 
budgets. 
St. Paul's Hospital
Cowichan Hospital
Centre for Children and Youth Living 
with Health Complexity 
Kamloops Cancer Centre
Royal Columbian Hospital Phase 2 & 3
Nanaimo Cancer Centre
Clinical Research and Support Centre 
New Surrey Hospital
Vancouver General Hospital Operating 
Rooms
Cariboo Memorial Hospital
University Hospital of Northern BC 
Redevelopment
Richmond Hospital Redevelopment
2026            2027           2028          2029           2030           2031            2032            2033
Major Healthcare Projects
Chart 2 – Major Healthcare Projects Currently Under Construction2
2 Tis chart is not a complete listing of all healthcare projects under construction. See Table 1.8 for a full listing of major projects.

--- page 78 ---
THREE YEAR FISCAL PLAN
68 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Te re-pacing of taxpayer-supported capital 
spending is occurring at the same time as 
increased BC Hydro investments which will 
help sustain the economy and create jobs. 
Te Budget 2026 fiscal plan period projects 
$14.6 billion in self-supported capital spending 
for BC Hydro, a $1.3 billion increase compared 
to the Budget 2025 fiscal plan projection. More 
information on how BC Hydro projects are 
creating jobs and supporting the Province’s 
economy can be found in the topic box on 
page 47.
Efficiently Delivering Long -Term Care
Te Province is committed to expanding 
long-term care availability to meet the needs 
of the aging population. Construction is 
underway on projects like St. Vincent’s 
Heather, a new long-term care home that will 
increase access to care for seniors in the Lower 
Mainland. Te new 13-storey long-term care 
home will include space for 240 residents. 
Te replacement of the Dr. F.W. Green 
Memorial Home is also underway in Cranbrook. 
It will replace the existing facility and increase 
beds from 60 to 150.
However, Government is experiencing 
significant and unsustainable costs per 
long-term care bed — up to $1.8 million 
per bed in some cases. Government is in the 
process of determining ways to deliver more 
cost efficient long-term care beds throughout 
the province. 
5.8
9.8
10.8
12.5
13.7
13.1
10.9
2017/18
2023/24
2024/25
2025/26
2026/27
2027/28
2028/29
Capital spending adjusted for 
construction price index2
Projected outlook over the next four years
&Kart  ± 6Sending in Prior <ears 
Compared to Current Outlook   billions 
For example, the Province’s 2025/26 
Tird Quarterly Report reflects budget increases 
for the Western Communities long-term 
care facility in Colwood and the Nanaimo/
Lantzville long-term care facility. Despite 
the budget increase, the Vancouver Island 
Health Authority worked with the Ministry 
of Infrastructure to mitigate the extent of cost 
escalation through value engineering. Tis 
included streamlining mechanical, electrical 
and architectural systems and consolidating 
buildings for better efficiency. Tese efforts have 
significantly brought down the cost per bed for 
these facilities compared to those currently in 
construction. Government has approved these 
budget increases to continue to address the 
shortage of long-term care beds in the province. 
Table 1: Total cost per bed of long-term care 
facilities
With B.C.’s aging population and a demand for 
long-term care that outpaces space availability, 
Government is taking action to deliver beds 
more efficiently and at a scale that meets the 
crisis. Tis includes advancing innovative 
approaches like standard design guidelines for 
long-term care homes, modular construction 
options, and a reassessment of facility 
requirements to achieve cost efficiencies, while 
maintaining safe, high-quality care for seniors. 
Government is adjusting the timing of delivery 
for several approved long-term care projects to 
incorporate the lessons learned from projects 
already underway and its ongoing review of 
the long-term care infrastructure program. 
Tis work is focused on strengthening delivery, 
reducing risk and ensuring future projects are 
better positioned to meet the serious needs of 
B.C. seniors and their families. For instance, 
taking the time to redesign projects based on 
standardized design guidelines aims to lower 
costs and construction timelines. Once this 
3  Actual spending was $3.9 billion in 2017/18, $8.8 billion in 2023/24 and $10.4 billion in 2024/25. Te escalation applied reflects the increase in 
the Vancouver non-residential construction price index between 2017 to 2025.
Total cost per bed 
($ millions)
Project
1.59
Dr. F.W. Green Memorial Home
1.29
St. Vincent's Heather Long-Term Care
1.17
Nanaimo Long-Term Care
1.09
Western Communities Long-Term Care

--- page 79 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 69
THREE YEAR FISCAL PLAN
process is complete, the Province will be able 
to establish revised completion dates and move 
forward with greater certainty in expanding 
long-term care capacity in the years ahead.
Long-term care facilities funded through the 
capital plan are only part of the government’s 
plan to support seniors and increase access to 
care. Te Province is piloting the new Small 
Care Homes that adapt existing residential 
buildings to provide 24/7 care in a familiar and 
comfortable setting. Compared to traditional, 
larger-scale long-term care facilities, Small Care 
Homes are more economical, expedient and 
sustainable to launch. Many seniors also want 
to stay at home longer, closer to loved ones. 
Government supports programs like Better at 
Home, Hospital at Home and LTC@Home to 
help seniors stay in their homes longer.
Building the Homes People Need
Government funds housing investments 
through a mix of operating grants, financing 
arrangements and capital spending. Trough 
Budget 2026, Government is adjusting the pace 
of some housing investments. Tis includes 
reallocating nearly $1.4 billion across the 
fiscal plan, while maintaining Government’s 
commitment to overall unit targets over a 
longer term. Even as government re-paces some 
housing investments, capital investment in 
housing remains at historic levels. Budget 2026
housing investments are nearly five times 
what they were in 2016, demonstrating 
Government’s continued commitment to 
delivering the homes people need. More 
information can be found starting on page 23.
Meeting Acute Care Needs Troughout the 
Province
Te timing of Phase 2 of the Burnaby Hospital 
has been adjusted as part of ongoing efforts 
to strategically sequence the Province’s capital 
plan. Te first phase of this hospital project is 
experiencing delays due to changes in scope 
and the complexity of renovating an operating 
acute care facility. Further work is needed 
to ensure alignment between scope, design 
development and cost assumptions in support 
of delivering the project within approved 
budgets. Tis provides an opportunity to 
refresh plans to ensure the project meets 
the needs of the community. Construction 
of Phase 1 of the Burnaby Hospital 
Redevelopment is currently underway and 
will be completed in 2027. 
Additional efforts are being undertaken 
to ensure the Province is advancing the 
development of new acute care projects, 
including the launch of initial planning for 
expansion at Nanaimo Regional General 
Hospital.
Working to Bring Down Capital Costs in the 
K-12 Sector
Government is continuing to innovate to 
deliver K-12 infrastructure in a timely and 
cost-effective manner. Tese ongoing efforts 
will help to keep the capital plan ambitious and 
sustainable. Te Province continues to build 
new student spaces in growing communities 
throughout British Columbia with its 
Prefabricated Classroom Program. Te program 
builds modern classrooms with sustainable, 
energy-efficient designs. Tese classrooms are 
more cost effective and can be built twice as 
fast as traditional schools. Since the inception 
of the program in 2023, government has 
approved 37 projects, creating 7,900 student 
spaces. In addition, Government has recently 
approved the seismic replacement of Ladysmith 
Intermediate School. It will be the first K-12 
facility fully constructed with prefabricated 
materials in British Columbia.
Increasing Support for Maintaining 
Infrastructure 
Government continues to invest in the 
maintenance, repair and renewal of provincially 
owned infrastructure. Tis funding is essential 
for the safe operations of provincial highways, 
hospitals, schools, and other public infrastructure.
Examples include bridge rehabilitation; HVAC, 
electrical and plumbing system updates; 
renovations to improve accessibility; and 
seismic upgrades. 

--- page 80 ---
THREE YEAR FISCAL PLAN
70 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Tese investments deliver strong results 
for taxpayers and extends the lifespan of 
infrastructure for future British Columbians. 
Te recently announced Agassiz-Rosedale 
Bridge project highlights the value of this 
program. Te existing bridge has nearly reached 
the end of its useful life. Te $64 million 
rehabilitation project is expected to extend 
the life of the bridge by 40 to 50 years and 
prevent the need for a full replacement which 
would otherwise have a total cost in excess of 
$1 billion. 
Allocations for these types of infrastructure 
improvements are increasing to provide 
more predictability in the province’s capital 
spending. Budget 2026 provides an additional 
$200 million in funding over three years 
to support these maintenance programs. 
Tis brings total program spending to over 
$5.9 billion over the fiscal plan period. Tis 
builds upon the $227 million added over three 
years through Budget 2025 and $616 million 
added over three years through Budget 2024. 
Updating Legislated Reporting Tresholds 
In accordance with the Budget Transparency and 
Accountability Act (BTAA), Government is 
required to provide updates on major project 
expenditures. Tis is done through the Capital 
Expenditure Projects Greater Tan $50 million 
table ($50M Table) that is reported in the 
budget and quarterly updates (starting on 
page 60 in this report).
Te original intention of the threshold was to 
report capital projects of significant size, risks 
and costs. Te threshold of $50 million for 
capital projects has remained the same since the 
act was established in 2000 while the cost of 
construction in British Columbia has increased 
over 150 per cent. In 2001, the $50M Table 
captured 14 projects totaling $4 billion 
in anticipated costs. As of Budget 2026, 
there are over 200 projects totaling over 
$80 billion in anticipated costs, including 
many straightforward K-12 school projects 
and routine upgrades to BC Hydro facilities 
that would not have been captured previously. 
Te increase in the number of projects on the 
table reflects the significant increase in capital 
spending but also captures less complex projects 
that were not contemplated when the threshold 
was established.
To reflect the construction market of today, 
Government will be tabling legislation to 
update the current threshold in alignment 
with the growth in construction costs since 
2000 and ensure reporting is streamlined and 
focused on major projects. It will also require 
future governments to assess these thresholds 
to maintain alignment with construction price 
trends over time. Te Province will continue 
to safeguard the framework and intent of 
the BTAA in ongoing capital planning and 
reporting.

--- page 81 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 71
THREE YEAR FISCAL PLAN
Provincial Debt
Government obtains financing from outside sources mainly through debt instruments 
that are to be repaid on future dates. Total provincial debt is projected to increase by 
$80.5 billion over the fiscal plan period to $234.6 billion by 2028/29.
Taxpayer-supported debt is forecast to increase by $72.5 billion to $189.0 billion 
by 2028/29 to finance the operating deficits and significant investments in capital 
infrastructure over the next three years, including $5.7 billion borrowed for education 
projects, $8.5 billion for health facilities, $15.7 billion for transportation sector projects, 
$2.9 billion for social housing and $2.6 billion for other service delivery agencies and 
general government.
Te self-supported debt of commercial Crown corporations is forecast to increase 
by $8.0 billion over the fiscal plan period, ending at $45.5 billion. Tis increase is 
mainly for capital investments related to improving and expanding British Columbia’s 
hydroelectric generation and distribution assets.
Borrowing requirements and debt are affected by changes in the timing of capital project 
spending as well as the Province’s actual operating results and the timing and amount 
of upcoming requirements. Te current projection of total provincial debt for 2025/26 
is $2.6 billion lower than forecast in Budget 2025 due to improved operating results 
and lower capital funding requirements, partially offset by changes in working capital 
balances and a higher opening balance adjustment for the 2024/25 year end.
Table 19 Provincial Debt Summary1
($ millions unless otherwise indicated)
Updated
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Taxpayer-supported debt
Provincial government
Operating ….........................................................................................
31,866
      
45,522
      
57,563
      
69,000
      
Capital 2 …...........................................................................................
51,330
      
57,356
      
63,514
      
69,332
     
Total provincial government …............................................................
83,196
      
102,878
    
121,077
    
138,332
   
Taxpayer-supported entities
BC Transportation Financing Authority …...........................................
27,979
      
32,959
      
38,216
      
43,338
      
Health Authorities and Hospital Societies ….......................................
2,281
        
2,227
        
2,169
        
2,104
        
Post Secondary institutions ….............................................................
1,000
        
1,060
        
1,061
        
1,099
        
Social Housing  …................................................................................
1,642
        
2,729
        
2,967
        
2,324
        
Other 3 ………………………………………………………………………
442
           
1,044
        
1,416
        
1,822
       
Total taxpayer-supported entities….....................................................
33,344
      
40,019
      
45,829
      
50,687
     
Total taxpayer-supported debt ………………………………………………… 116,540
    
142,897
    
166,906
    
189,019
    
Self-supported debt ……..........................................................……………
37,519
     
40,477
     
42,949
     
45,540
     
Total provincial debt ……………………………………………………………
154,059
   
183,374
   
209,855
   
234,559
   
Taxpayer-supported debt to *DP ratio ………………………………………
261
306
344
374
Total provincial debt to *DP ratio ………………………………………….…
345
393
432
464
Taxpayer-supported debt per capita () ……………………………………
20,453
      
25,305
      
29,431
      
32,988
      
Taxpayer-supported interest bite (cents per dollar of revenue) …………
49
62
73
82
1
2
3
Provincial debt is prepared in accordance with Generally Accepted Accounting Principles and presented consistent with the Debt Summary Report included   
in the Public Accounts. Debt is shown net of sinking funds and unamortized discounts, excludes accrued interest and foreign exchange adjustments, and 
includes non-guaranteed debt directly incurred by commercial Crown corporations and debt guaranteed by the Province.
Includes debt incurred by the government to fund the building of capital assets in the education, health, social housing and other sectors.
Forecast includes potential provincial First Nation equity loan guarantees that may be authorized by Treasury Board under the First Nations Equity Financing 
program.

--- page 82 ---
THREE YEAR FISCAL PLAN
72 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Increasing debt levels are expected to result in higher debt metrics, with 
taxpayer-supported debt-to-GDP rising to 37.4 per cent at the end of the fiscal 
plan period (see Chart 1.4). Te debt-to-GDP trend has improved from the 
First Quarterly Report which was impacted by the decision to eliminate the consumer 
carbon tax. Steps taken in Budget 2026 have improved this metric measurably. 
Despite this growth, B.C.’s net liabilities-to-GDP remains one of the lowest in Canada 
(see Chart 1.5).
With increasing debt levels, government’s debt servicing costs are expected to increase 
over the fiscal plan period. A common metric of affordability is the interest bite, or 
the taxpayer-supported interest cost as a percentage of revenue, which is forecast at 
4.9 per cent in 2025/26 and reaches 8.2 per cent by 2028/29.
Government’s gross borrowing requirements over the fiscal plan period are anticipated to 
total $100.2 billion, which will finance government’s operating and capital investments, 
as well as refinancing of debt maturities (see Table 1.10).
Total provincial debt is presented consistent with the Debt Summary Report included 
in the Public Accounts. Debt is shown net of sinking fund investments and unamortized 
discounts, excludes accrued interest and foreign exchange adjustments, and includes 
non-guaranteed debt directly incurred by commercial Crown corporations and debt 
guaranteed by the Province. Te reconciliation between provincial debt and the financial 
statement debt is shown in Appendix Table A15.
46.6
39.7
37.7
8.7
23.6
47.6
40.8
38.9
9.0
27.4











CAN
QC
ON
AB
BC
1HtOiDEiOitiHsDsDSHrcHntDJHoI*'3
)orHcDst
)orHcDst
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1HtOiDEiOitiHsto*'3isusHdIorintHrSroYinciDOcoPSDrisonduHtKHDYDiODEiOit\oISuEOicinIorPDtion)iJurHsZHrHsourcHd
IroPHDcKjurisdiction’s ODtHstIiscDOorHconoPicuSdDtHSuEOisKHdIroP)HEruDr\tKrouJK1oYHPEHr%&IiJurHsDrH
EDsHdontKHBudget 2026 IorHcDst
&Kart 
Debt AIIordability Among Provinces
23.2
26.6
31.6
3ϱ.ϱ
23͘ϭ
26͘ϭ
30͘6
34͘4
37͘4
2024ͬ2ϱ
202ϱͬ26
2026ͬ27
2027ͬ28
2028ͬ29
Budget 2026
Yϭ hƉdĂte
Per cent
18.2
22.9
26.7
30.9
34.4
23.1
26.1
30.6
34.4
37.4
2023/24
2024/25
2025/26
2026/27
2027/28
2028/29
Budget 2025
Per cent
Budget 2026
&Kart 
7a[SayersXSSorted Debtto*DP

--- page 83 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 73
THREE YEAR FISCAL PLAN
Additional details on government’s outstanding debt are provided in Appendix 
Tables A17 to A19.
Relationship Between Deficit and Debt
In addition to operating results, the change in debt is affected by cash balance changes and 
other working capital changes, as well as the debt financing requirements of government’s 
capital plan. Table 1.11 reconciles the forecast deficits with changes in debt.
Table 1.11  Provincial Debt Changes
($ millions)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Total provincial debt1 at beginning of year ……………………………… 133,877
   
154,059
   
183,374
   
209,855
  
Taxpayer-supported debt changes
Annual deficit ........................................................................................
9,614
       
13,309
     
12,165
     
11,437
     
Non-cash items ………………………………………………………………
(3,242)
      
(3,412)
      
(3,677)
      
(3,876)
      
Changes in commercial Crown corporations' retained earnings...........
1,644
       
1,441
       
1,447
       
1,444
       
Changes in cash balances 2 ….............................................................
(4,786)
      
(338)
         
(60)
           
239
          
Changes in other working capital balances 3 .......................................
1,754
       
1,693
       
1,017
       
1,984
       
Taxpayer-supported capital spending ..................................................
12,467
     
13,664
     
13,117
     
10,885
    
Annual change in total taxpayer-supported debt ………………………
17,451
     
26,357
     
24,009
     
22,113
    
Self-supported debt changes
Net operating cash flows ......................................................................
(1,875)
  
(2,055)
  
(2,576)
  
(2,603)
  
Commercial crown capital spending .....................................................
4,606
       
5,013
       
5,048
       
5,194
      
Annual change in total self-supported debt ……………………………
2,731
       
2,958
       
2,472
       
2,591
      
Annual change in total provincial debt ................................................
20,182
     
29,315
     
26,481
     
24,704
    
Total provincial debt1 at year end …………………………………………
154,059
   
183,374
   
209,855
   
234,559
  
1
2
3 Changes in other working capital balances include changes in accounts receivables, accounts payable, accrued liabilities, deferred revenue, investments, 
restricted assets and other assets.
Provincial debt is prepared in accordance with Generally Accepted Accounting Principles and presented consistent with the Debt Summary Report 
included in the Public Accounts. Debt is shown net of sinking funds and unamortized discounts, excludes accrued interest and foreign exchange 
adjustments, and includes non-guaranteed debt directly incurred by commercial Crown corporations and debt guaranteed by the Province.
Changes in cash balances include all cash balances from the Consolidated Revenue Fund, School Districts, Universities, Colleges, Health Authorities, 
Hospital Societies and other taxpayer-supported agencies.
Table 1.10  Provincial Borrowing Requirements
($ millions)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Total provincial debt1 at beginning of year ……………………………………
133,877
   
154,059
   
183,374
   
209,855
  
New borrowing 2 ……………………………………………………………………
31,496
     
34,909
     
35,024
     
30,276
     
Direct borrowing by Crown corporations and agencies ................................
150
          
524
          
182
          
437
          
Retirement of debt 3 ………………………………………………………………
(11,464)
    
(6,118)
      
(8,725)
      
(6,009)
     
Net change in total debt ……………..……………………………………………
20,182
     
29,315
     
26,481
     
24,704
    
Total provincial debt1 at year end ………………………………………………
154,059
   
183,374
   
209,855
   
234,559
  
Annual growth in debt (per cent) ..................................................................
15.1
         
19.0
         
14.4
         
11.8
        
1
2 New long-term borrowing including refinancing of short-term debt with long-term borrowing.
3
Provincial debt is prepared in accordance with Generally Accepted Accounting Principles and presented consistent with the Debt Summary Report included in 
the Public Accounts. Debt is shown net of sinking funds and unamortized discounts, excludes accrued interest and foreign exchange adjustments, and includes 
non-guaranteed debt directly incurred by commercial Crown corporations and debt guaranteed by the Province.
Maturities (net of sinking fund balances), sinking fund contributions, and sinking fund earnings.

--- page 84 ---
THREE YEAR FISCAL PLAN
74 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Risks to the Fiscal Plan
Table 1.12 provides the estimated fiscal impacts of the identified sensitivities for some 
of the key variables in the fiscal plan projections on an individual basis. However, 
inter-relationships between the variables may cause the actual variances to be higher 
or lower than the estimates shown in the table. For example, an increase in the 
US/CDN dollar exchange rate may be partly offset by higher commodity prices.
Te assumptions and risk sensitivities for individual revenue sources and major program 
areas can be found in Appendix Tables A5 and A6.
Own Source Revenue
Te main areas that may affect own source revenue forecasts are B.C.’s overall economic 
activity, the performance of its major trading partners, the exchange rate and commodity 
prices.
Revenues are sensitive to economic performance. For example, taxation and other 
revenue sources are driven by economic factors, such as household income, consumer 
expenditures, housing starts, employment, population growth and the exchange rate. 
Te revenue forecast contained in the fiscal plan is based on the economic forecast 
detailed in Part 3 - British Columbia Economic Review and Outlook. As well, it incorporates 
commodity price forecasts developed by the Ministry of Forests, the Ministry of Energy 
and Climate Solutions and the Ministry of Mining and Critical Minerals based on 
private sector information.
Income tax revenue forecasts are based on projections of household income, net operating 
surpluses of corporations and the federal government estimates of national corporate 
taxable income. Te forecasts are updated from reports on tax assessments provided by 
the Canada Revenue Agency. As a result, revenue estimates and tax credits can be affected 
by timing lags in the reporting of current and prior year tax assessments by the Canada 
Revenue Agency.
Government revenues can also be volatile due to the influence of the cyclical natural 
resource sector in the economy, and the importance of natural resource revenues in the 
Province’s revenue base. Changes in commodity prices, such as natural gas, lumber or 
coal may have a significant effect on natural resource revenues and economic growth.
7aEle 1.12  .e\ )LVcal 6enVLtLYLtLeV
($ millions)
Variable
Increases of
Annual Fiscal Impact
Nominal GDP ………………………………………
1%
$300 – $500
Lumber prices (US$/thousand board feet) ………
$50
$40 – $60 1 
Natural gas prices (Cdn$/gigajoule) ………………
25 cents
$150  – $250 2
US exchange rate (US cent/Cdn $) ………………
1 cent
-$50 to -$90
Interest rates ………………………………………… 1 percentage point
-$271
Debt …………………………………………………
$500 million
-$18 to -$21
1 Sensitivity relates to stumpage revenue only. 
2 Sensitivities can vary significantly especially at lower prices. 

--- page 85 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 75
THREE YEAR FISCAL PLAN
Te economic and revenue forecasts could be affected by trade related issues, such as 
continued uncertainty around restrictive global trade policies, U.S. tariffs, and renewal of 
the Canada-United States-Mexico Agreement.
Tere is also the ongoing U.S.-Canada softwood lumber dispute. Te imposition of 
countervailing and anti-dumping duties by the U.S. on Canadian softwood lumber 
exports, and the addition of tariffs on wood products, have the effect of increasing market 
uncertainty and volatility as well as increasing costs and imposing burdensome bonding 
requirements for Canadian producers. B.C. disagrees with the views that the lumber 
industry is subsidized or that it sells lumber into the U.S. at below cost or sales value in 
Canada, and is supporting the federal government in its challenges of the application of 
duties to the World Trade Organization and under Chapter 19 of the North American 
Free Trade Agreement and under Chapter 10 of the Canada-United States-Mexico 
Agreement.
As a result, some B.C. communities and residents that are reliant on the forest sector 
have been adversely affected by the continuing uncertainty and volatility. Actual results 
for a number of factors, including assumptions for lumber prices, harvest volumes, 
interest and exchange rates could pose risks to the fiscal plan.
Over the fiscal plan period, the outlook for forest revenue is lower than in recent years, 
incorporating lower harvest volumes. Te impacts of the mountain pine beetle infestation 
and forest fires have reduced the supply of timber available to the forest industry. 
Government is also protecting more of the oldest and rarest forests through the old 
growth deferral strategy, while accelerating efforts to build a stronger, more innovative 
forestry industry.
Details on major assumptions and sensitivities resulting from changes to those 
assumptions are outlined in Appendix Table A5.
Federal Government Contributions
Potential policy changes regarding federal government allocations, including health and 
social transfers and cost-sharing agreements, could affect the revenue and the expenditure 
forecasts. Te forecast incorporates preliminary estimates of the cost associated with 
severe flooding and other events that are eligible for federal government contributions 
under the Disaster Financial Assistance Arrangements. Expenses and the related federal 
contributions could be higher or lower depending on the timing of the determination of 
expenses by the Province and federal validation.
Impacts of Federal Government Policy Changes
Unexpected changes in federal government policies may have a broader impact on the 
forecast of provincial revenues and spending programs. Changes to immigration targets 
may affect tax revenue sources and demands for government programs and services. 
For example, the recently announced cap on international students may impact the 
student-related revenues and spending of post-secondary institutions.

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Crown Corporations
Crown corporations provided financial forecasts and statements of assumptions approved 
by their boards, which were used to prepare the government’s fiscal plan. Tese forecasts, 
along with further details on assumptions and risks, are also included in the service plans 
of these corporations and agencies, being released with the budget.
SUCH Sector
Te fiscal plan incorporates three-year projections for school districts, post-secondary 
institutions, and health authorities, based on plans submitted by those entities.
Forecasts for the health authorities have been signed off by the board chairs of the 
respective health authorities. Te Ministry of Health will continue to work with the 
health authorities to manage any emerging revenue and spending pressures.
Forecasts for the universities, colleges, and institutions have been signed off by chairs of 
the board or audit committee and lead financial officers.
Forecasts for the combined school districts have been compiled by the Ministry of 
Education and Child Care based on the requirements of the School Act, the current year 
plans developed by the school districts, and ministry policy assumptions respecting future 
funding allocations. Variances from these assumptions could impact the fiscal plan.
Spending
Government funds several demand-driven programs, including those delivered through 
third-party delivery agencies, such as health care, K-12 and post-secondary education, 
income assistance and community social services. Te budgets for these programs reflect 
reasonable estimates of demand and other factors such as price inflation. If demand is 
higher than estimated, this will result in a spending pressure to be managed.
Te spending plans for the Ministry of Forests and the Ministry of Emergency 
Management and Climate Readiness include base amounts to fight wildfires and respond 
to floods and other public emergencies. Unanticipated or unpredictable occurrences may 
affect expenses in these ministries.
Increasing levels of debt result in a higher potential impact from the risk of interest rate 
increases.
Details on major assumptions and sensitivities resulting from changes to those 
assumptions are shown in Appendix Table A7 and in ministry service plans.
Capital Risks
Te capital spending forecasts included in the fiscal plan may be affected by subsequent 
planning (i.e. design development) and procurement activities (i.e. receipt/review of 
construction bids) resulting in project costs that are higher than the initial approved 
budgets. For large capital projects, government will review the budget and scope risks, 
and the strategies to mitigate these risks.

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THREE YEAR FISCAL PLAN
Other risks affecting capital spending forecasts include:
• changes in the timing of capital project spending, which may reduce borrowing 
requirements and debt needed to fund capital investments in the near term;
• weather and geotechnical conditions, including the outcome of environmental impact 
studies, causing project delays and/or unexpected costs;
• changes in market conditions, including service demand, the impact of inflation 
on building material costs, the availability of, and wage rates for, skilled workers, 
and borrowing costs;
• the accuracy of capital project budget and construction schedule forecasts;
• the successful negotiation/timing of cost-sharing agreements with the federal 
government and other funding partners; and
• the timing and outcomes of public-private sector partnership negotiations.
Pending Litigation
Te spending plan for the Ministry of the Attorney General contains provisions 
for payments under the Crown Proceeding Act based on estimates of expected 
claims, judgments and related costs of settlements likely to be incurred. Litigation 
developments may occur that are beyond the assumptions used in the plan (for example, 
higher-than-expected volumes, or size of claim amounts and timing of judgments and 
settlements). Tese developments may affect government revenues and/or expenditures 
in other ministries. Litigation may also impact government agencies and corporations.
Write-downs and Other Adjustments
Ministry budgets provide for anticipated levels of asset or loan write-downs where these 
expenses can be reasonably estimated. Te overall spending forecast does not make 
allowance for extraordinary items other than the amount provided in the Contingencies 
Vote.
Prudence and Risk
Te economic, financial, and external variables and factors that impact the estimates of 
revenues, expenditures, capital spending and debt will change throughout the year as new 
information becomes available with potentially material impacts. As a result, the actual 
operating surplus/deficit, capital expenditure and debt figures may differ from the current 
forecast. Government will continue to update the fiscal plan throughout the year.
Government incorporates a prudent approach in forecasting with the aim of meeting or 
exceeding budget projections. Tis prudence is primarily reflected in revenue projections 
that are supported by various sources of external information, and spending forecasts 
which include complete costing for approved programs and initiatives. More specifically, 
the following measures are part of Budget 2026:
• Economic growth assumptions for the province’s major trading partners are prudent 
compared to private sector forecasts to reflect external risks. Te Budget 2026
projections for British Columbia real GDP are within the range of the outlook 
provided by members of the Economic Forecast Council.

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• Te Budget 2026 natural gas price forecast is lower than the private sector average over 
the next three years, to adopt prudence in preparing the natural gas royalty forecast. 
Over the ensuing three years, the Budget 2026 natural gas price projection averages 
60 cents lower than the average of the private sector forecasters (see Appendix Table A6 
for details).
• Te Budget 2026 expense forecast includes a Contingencies voted appropriation of 
$5 billion in each year of the fiscal plan to manage priority spending initiatives and 
caseload pressures.

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PART 2
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TAX MEASURES
Table 2.1   Summary of Tax Measures
Effective Date
2026/27
2027/28
2028/29
Home Owner Grant Act
• 
Repeal northern and rural home owner benefit  ...........................................................
January 1, 2027
24
97
97
Income Tax Act
• 
Increase lowest personal income tax rate from 5.06% to 5.60% …..............................
January 1, 2026
476
     
493
      
513
      
• 
Increase B.C. tax reduction credit by $115 …..................................…..........................
January 1, 2026
(123)
    
(122)
    
(121)
     
• 
Freeze personal income tax brackets and non-refundable credits …...........................
January 1, 2027
60
       
309
      
590
      
• 
Amend scientific research and experimental development tax credit............................ December 16, 2024
(16)
      
(15)
      
(15)
       
• 
Increase tax credit for volunteer firefighters and search and rescue volunteers ….......
January 1, 2026
(1)
        
(1)
         
(1)
         
• 
Introduce new B.C. children and youth disability supplement …...................................
Regulation
-
          
(105)
    
(140)
     
• 
Eliminate sunset date for farmers' food donation tax credit …...................................…
royal assent
*
*
*
• 
Eliminate production services tax credit pre-certification requirement …......................
royal assent
*
*
*
• 
Extend filing deadlines for Film Incentive B.C. tax credit and production services
tax credit ….......................................….......................................…..............................
royal assent
*
*
*
• 
Eliminate filing requirement for Film Incentive B.C. completion certificate …................
royal assent
*
*
*
• 
Increase production services tax credit certification fee and introduce major
production tax credit certification fee ….........................................................................
March 1, 2026
*
*
*
• 
Introduce new manufacturing and processing investment tax credit ............................
April 1, 2026
(55)
      
(55)
      
(55)
       
• 
Eliminate sunset date for book publishing tax credit .....................................................
March 31, 2026
*
*
*
• 
Extend Shipbuilding and ship repair industry tax credit ................................................
royal assent
*
*
*
Land Tax Deferment Act
• 
Amend property tax deferment program interest rate terms…......................................
January 1, 2026
11
       
23
        
34
        
Police Act
• 
Set property tax rates….................................................................................................
January 1, 2026
*
*
*
Property Transfer Tax Act
• 
Expand purpose-built rental exemption  .......................................................................
January 1, 2025
*
*
*
Provincial Sales Tax Act
• 
Expand PST to certain professional services ...............................................................
October 1, 2026
261
     
534
      
563
      
• 
Eliminate exemptions for clothing patterns, basic cable, and landline services ...........
October 1, 2026
23
       
44
        
43
        
School Act
• 
Increase additional school tax rates…...........................................................................
January 1, 2027
35
       
139
      
142
      
• 
Set provincial residential class school property tax rates…...........................................
January 1, 2026
51
       
124
      
201
      
• 
Set provincial non-residential class school property tax rates…...................................
January 1, 2026
5
         
31
        
59
        
Speculation and Vacancy Act
• 
Increase rate for foreign owners and untaxed worldwide earners to 4%…...................
January 1, 2027
6
         
23
        
23
        
Taxation (Rural Area) Act
• 
Set provincial rural area property tax rates…................................................................
January 1, 2026
-
          
2
          
4
          
Various Acts
• 
Various technical measures ………..…………………………….....................................
various
Total .....................................................................................................................................
757
     
1,521
   
1,937
   
    *   Denotes measures that have no material impact on taxpayers.
Taxpayer Impacts
($ millions)

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TAX MEASURES
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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
B.C. Tax Updates
Since taking office, government has worked hard to reduce the tax burden on British Columbians and 
their families. Tis includes: eliminating MSP premiums; introducing and enhancing the B.C. family 
benefit; introducing the renter’s tax credit; increasing the B.C. tax reduction credit; and timely temporary 
enhancements and supports. As a result of these efforts taxpaying British Columbians are now paying less 
provincial tax in 2026 than they would have in 2022 at the same income levels.
Provincial tax revenue is the largest source of provincial revenue (58 per cent in 2025/26; see Appendix 
Table A9) used to fund the services British Columbians rely on.
As part of Budget 2026’s efforts to protect critical services for the people of B.C., the government is taking 
steps to increase provincial revenue by updating taxes.
At the same time government continues to help people with costs and ensure British Columbians benefit 
from some of the lowest overall tax burdens in Canada.
Fiscal impacts of eliminating carbon tax
For its first ten years, revenue raised by B.C.’s consumer carbon tax was used to pay for tax cuts in other 
areas, including reductions to the first two personal income tax rates, reductions to the small business 
corporate tax income tax rate, elimination of the provincial sales tax on electricity, and industry property 
tax deductions. 
When the Province eliminated the consumer carbon tax and the climate action tax credit in 2025, 
it resulted in net negative fiscal impacts estimated at $2,083 million in 2026/27, $2,343 million in 
2027/28, and $2,554 million in 2028/29.

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Home Owner Grant Act
Northern and Rural Home Owner Benefit Repealed
Effective January 1, 2027, the northern and rural home owner benefit is repealed. 
Te northern and rural home owner benefit was introduced to offset the effects of the 
consumer carbon tax, which has now been repealed. It has provided an additional $200 
to eligible home owner grant recipients who live outside the Capital, Metro Vancouver, 
and Fraser Valley regional districts to offset their higher carbon tax costs.
Income Tax Act
Lowest Personal Income Tax Rate and Basic Personal Income Tax Credits Increased
Effective for the 2026 and subsequent taxation years, the lowest personal income tax rate 
is increased from 5.06 per cent to 5.60 per cent. Tis increased rate will apply to the first 
$50,363 of taxable income for 2026, and will appear on paycheques after July 1, 2026, 
when payroll withholdings are updated.
Effective for the 2026 and subsequent taxation years, the applicable percentage for the 
basic personal income tax credits is also increased from 5.06 per cent to 5.60 per cent. 
Tis will increase the amount of tax credits that can be claimed under the basic personal 
amount, age amount, and other basic non-refundable income tax credits to fully or 
partially offset the tax rate increase for taxpayers.
Te tax impacts will vary by taxpayer based on income levels and the availability of tax 
credits. While the average taxpayer will pay an additional $76 in income taxes in 2026, 
more than 40 per cent of taxpayers will see a tax saving when combined with the B.C. 
tax reduction credit increase below. Te maximum tax impact will be $201 in 2026 and 
will be paid by individuals with income greater than $140,000 and who do not have 
additional tax credits available. Tis represents approximately 1 per cent of taxpayers.
In addition, given recent federal tax changes to decrease the lowest federal personal 
income tax rate by one percentage point, BC taxpayers will on average pay lower 
combined personal income taxes in 2026, except for high-income individuals earning above 
$265,545 who will see a net tax increase. B.C. continues to have the lowest income taxes 
of any province in Canada for individuals earning less than $149,000.
B.C. Tax Reduction Credit Amount Increased
Effective for the 2026 taxation year, the maximum B.C. tax reduction credit is increased 
by $115 to $690. Te credit is non-refundable and can be claimed by lower-income 
individuals. Te maximum amount can be claimed by individuals who have a net income 
of less than $25,570 for 2026. Te credit is reduced by 3.56 per cent for income that 
exceeds the threshold.
Tax Measures — Supplementary Information
For more details on tax changes see: 
www.gov.bc.ca/budgettaxchanges

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Tis increased tax credit will further offset the tax rate increase from 5.06 per cent to 
5.60 per cent, effective for the 2026 taxation year. With this increase to the B.C. tax 
reduction credit, taxpayers with income below $25,570 will see tax savings of up to $690 
for the year, while taxpayers with income below $44,950 will receive a partial credit.
Personal Income Tax Brackets and Non-Refundable Tax Credits Indexation Paused 
for 2027 through 2030
Effective for the 2027 through to the 2030 taxation years, the personal income tax brackets 
and non-refundable tax credits are paused at their 2026 income levels. Indexation will 
return for the 2031 and subsequent taxation years. Tis change follows similar changes 
made in Alberta in 2019 and Manitoba in 2025.
Tis change will impact the province’s seven personal income tax bracket amounts, as 
well as non-refundable personal income tax credit amounts, including the basic personal 
amount, age amount, and disability amount. Te change will have a greater effect on 
British Columbians with higher incomes.
Te Scientific Research and Experimental Development Tax Credit Amended
Te Scientific Research and Experimental Development (SR&ED) tax credit is amended 
as follows to align with recent changes to the federal SR&ED tax incentive program:
• Te expenditure limit for the refundable tax credit is increased from $3 million to 
$6 million;
• Te taxable capital phase-out thresholds are increased from $10 million and 
$50 million to $15 million and $75 million, increasing the range over which the 
expenditure limit is gradually reduced;
• Capital expenditures are now eligible for the tax credit again; and
• Eligible Canadian public corporations are now able to claim the refundable SR&ED 
tax credit.
Tese changes are effective for taxation years that begin on or after December 16, 2024.
Te sunset date for the SR&ED tax credit is also removed.
Tax Credit for Volunteer Firefighters and Search and Rescue Volunteers Increased
Effective for the 2026 and subsequent taxation years, the amount of income an 
individual can claim for the tax credit for volunteer firefighters and search and rescue 
volunteers is increased from $3,000 to $6,000. Tis increases the maximum tax credit 
that may be claimed from $168 to $336.
New Children and Youth Disability Supplement Introduced
A new children and youth disability supplement for the B.C. Family Benefit is 
introduced for payments beginning July 1, 2027. Tis measure is being introduced as 
part of changes to the Children and Youth with Support Needs program.
Te new payment will be income-tested and available to families who have children 
with support needs and that meet the eligibility criteria. Families will be eligible for an 
additional annual amount of up to $6,000 for each eligible dependent. Eligibility will 
be determined based on entitlement to the federal disability tax credit. Te maximum 

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TAX MEASURES
payment amount of $6,000 will be reduced at a rate of 4 per cent for families with 
income above the $50,000 threshold. Te additional payment will be delivered monthly 
alongside the B.C. Family Benefit.
Farmers’ Food Donation Tax Credit Made Permanent
Effective on royal assent, the farmers’ food donation tax credit is made permanent by 
removing its sunset date. Te non-refundable credit is equal to 25 per cent of the fair 
market value of donated agricultural products and is intended to encourage farmers 
to donate fresh food to registered charities such as food banks and homeless shelters. 
Removing the sunset date supports investments in long-term food security efforts and 
further reduces food waste.
Mining Exploration Tax Credit Eligible Expenditures Confirmed
Subject to legislative amendments to the Income Tax Act (Canada), effective November 4, 2024,
the Province will amend the B.C. mining exploration tax credit to clarify that expenses 
incurred for the purpose of determining the quality of a mineral resource in Canada 
does not include expenses related to determining the economic viability or engineering 
feasibility of the mineral resource.
Tis change aligns with the announcement in federal Budget 2025.
Production Services Tax Credit Pre-Certification Requirement Eliminated
Effective on royal assent, the requirement for corporations to file a notice of intent 
to claim the production services tax credit is eliminated for notices due on or after 
February 17, 2026.
Notices that were required to have been filed prior to February 17, 2026 will continue to 
be subject to the previous requirements and timelines.
Film Incentive B.C. and Production Services Tax Credit Filing Deadlines Extended
Effective on royal assent, the time in which a corporation must file a claim for either 
the Film Incentive B.C. tax credit or the production services tax credit is extended from 
18 months to 36 months after the end of the corporation’s taxation year.
Te new time limit of 36 months applies to corporations with a taxation year beginning 
on or after February 17, 2026. For corporations with taxation years beginning before 
February 17, 2026, the time limit of 18 months is extended by a further 18 months if 
that time limit would have expired on or after February 17, 2026.
Requirement to File a Completion Certificate Eliminated
Effective on royal assent, corporations claiming the Film Incentive B.C. tax credit are 
no longer required to file a completion certificate with the Canada Revenue Agency that 
would have been due on or after February 17, 2026.
Tis change relates to the filing of a tax credit claim and does not affect a corporation’s 
requirement to apply for a completion certificate with the certifying authority.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Production Services Tax Credit Certification Fee Increased and Major Production 
Tax Credit Certification Fee Introduced
Effective March 1, 2026, the accreditation certificate fee for the production services tax 
credit is increased to $19,000 for corporations that began principal photography after 
December 31, 2024 and apply for certification on or after March 1, 2026. Te major 
production tax credit certificate fee is set at $5,000.
B.C. Manufacturing and Processing Investment Tax Credit Introduced
Effective April 1, 2026, a new temporary refundable investment tax credit is introduced 
for investments made by Canadian-controlled private corporations in buildings and 
machinery and equipment used for manufacturing and processing, subject to exclusions 
in the legislation.
Te new investment tax credit is calculated as 15 per cent of eligible investments up to 
$2 million, for a maximum credit of $300,000.
Te new investment tax credit is available at a rate of 15 per cent for investments made 
on or after April 1, 2026 until March 31, 2031. Starting April 1, 2031, the tax credit 
rate will be reduced by 2.5 percentage points per year until it is fully phased out for 
investments made after March 31, 2036.
Book Publishing Tax Credit Made Permanent
Effective March 31, 2026, the book publishing tax credit is made permanent by 
removing its sunset date.
Te refundable credit, worth 90 per cent of the base amount of federal contributions 
received under the Canada Book Fund, supports B.C.-based book publishers.
Shipbuilding and Ship Repair Industry Tax Credit Extended
Effective on royal assent, the shipbuilding and ship repair industry tax credit is extended 
for one year to the end of 2027.
Land Tax Deferment Act
Property Tax Deferment Program Interest Rate Terms Amended
Effective for the 2026 and subsequent taxation years, the property tax deferment 
program interest rate terms are amended. Te interest rates for the regular and families 
with children programs are harmonized, increased to rate of prime plus two per cent 
compounded monthly.
Te new interest rate will apply to property taxes deferred under both programs in 
respect of 2026 and subsequent taxation years. Any amounts deferred in respect of 
taxation years prior to 2026 will continue to be subject to the interest rate terms set 
under their applicable deferment agreements.
Te Province’s borrowing costs have been higher than the program’s lending terms, at 
a cost to other taxpayers. With this change the lending terms for new loans will more 
closely align with commercial lending terms.

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Police Act
Police Tax Rates Set
Effective for the 2026 tax year, the police tax rates are set to recover 33 per cent of 
legislated costs, after policy-based deductions, consistent with the policy in place 
since 2023.
Te police tax is a provincial property tax that partially recovers the Province’s costs 
of policing in rural areas and small municipalities with populations below 5,000. 
Te Police Act allows for up to 50 per cent of legislated costs to be recovered through 
the police tax.
Property Transfer Tax Act
Purpose-Built Rental Exemptions Expanded
Effective January 1, 2025, the purpose-built rental exemptions from the property 
transfer tax are expanded to apply to newly constructed purpose-built rental buildings 
leased for a maximum of 24 months before their first taxable transaction is registered at 
the Land Title and Survey Authority of British Columbia. Te 24-month period begins 
on the commencement date of the first lease, and leases must have a term of one month 
or longer.
Te expanded exemptions recognize a common practice among developers to lease units 
in newly constructed rental buildings to achieve steady revenue prior to sale. Tis is 
often required by lenders and purchasers who rely on the verified revenue to determine 
a building’s value.
Purchases of new qualifying purpose-built rentals are exempt from the further 2 per cent 
property transfer tax, which applies to the fair market value of the residential component 
of a taxable transaction that exceeds $3 million. In addition, transactions that occur 
between January 1, 2025 and December 31, 2030 are also exempt from the general 
property transfer tax. Tese exemptions were initially introduced in Budget 2023 and 
Budget 2024 to address housing affordability by incentivizing the construction of rental 
housing.
To qualify, properties must be newly constructed, non-stratified, and held as rentals on 
a monthly basis or longer for at least 10 years. Te residential portion of the property 
must be entirely used for rental purposes and have at least 4 apartments.
Provincial Sales Tax Act
PST Expanded to Certain Professional Services
Te provincial sales tax (PST), introduced in 1948, is a retail sales tax that primarily taxes 
the sale of goods. Since its introduction, B.C.’s economy has shifted significantly towards 
services, which have largely remained untaxed under the PST. B.C. currently has the 
narrowest sales tax base of all Canadian provinces that have a sales tax.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Effective October 1, 2026, the following services will become subject to the PST: 
accounting and bookkeeping services; architectural services; engineering and geoscience 
services; rental property and strata management services and commissions related to 
buying and selling non-residential real estate; and security and private investigation 
services. Expanding the tax to these services is generally consistent with how tax applies to 
these services in most provinces. Te PST on architectural, engineering, and geoscience 
services will apply to 30 per cent of the purchase price of the services subject to the tax.
Businesses that provide these services will need to register to collect and remit PST. More 
information will be made available before the taxes come into effect.
PST Exemptions for Clothing Patterns, Basic Cable, and Landline Services 
Eliminated
Effective October 1, 2026, the PST exemption for clothing patterns, yarn, natural fibres, 
synthetic thread, and fabric that are commonly used in making or repairing clothing 
are eliminated. Te exemption for services related to clothing and footwear will also be 
removed. Eliminating these exemptions is generally consistent with how tax applies to 
these goods and services in most provinces. Basic laundry services will remain exempt.
Te PST exemptions for basic cable television services, toll-free telephone services, 
and residential landline telephone services are also eliminated. Tis will improve fairness 
across platforms as alternatives to these services are currently taxable.
School Act
Additional School Tax Rates Increased
Effective for the 2027 and subsequent taxation years, the rates for the school tax on 
residential properties valued over $3 million are increased. Te tax rate that applies to 
the residential portion assessed between $3 million and $4 million is increased from 
0.2 per cent to 0.3 per cent, and the tax rate that applies to the portion of residential 
assessed value that exceeds $4 million is increased from 0.4 per cent to 0.6 per cent.
Te additional school tax applies to most properties in the residential class assessed at 
over $3 million, including detached homes, stratified condominiums or townhouse units, 
and most vacant land. In the case of a mixed-use property, only the residential portion of 
the property’s taxable assessed value above $3 million is subject to the tax. An estimated 
2.3 per cent of residential folios are subject to the additional school tax.
Provincial Non-Residential Class School Property Tax Rates Set
Since 2005, the Province has set non-residential property tax rates at a level such that 
industrial property tax revenues increase by inflation plus new construction. In contrast, 
B.C.’s other major sources of tax revenues, such as income and consumption taxes, have 
kept pace with GDP growth. Te share of tax revenue from provincial property taxes has 
decreased from 14 per cent in 2003/04 to 8 per cent in 2025/26.

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TAX MEASURES
To prevent further decline, for 2026 and future years, non-residential class school 
property taxes will be increased based on the 3-year average annual change in provincial 
nominal Gross Domestic Product. Tis policy replaces the previous rate setting policy, 
which increased non-residential class school tax revenue by inflation plus tax on new 
construction. Tis policy change maintains the property tax base relative to economic 
growth, in line with other provincial taxes.
Provincial Residential Class School Property Tax Rates Set
Consistent with the change for non-residential property tax rates, starting in 2026, 
residential class school property taxes will be increased based on the 3-year average annual 
change in provincial nominal Gross Domestic Product, before application of the home 
owner grant. Tis policy replaces the longstanding rate setting policy, where average 
residential class school property taxes, before application of the home owner grant, 
increased by the previous year’s provincial inflation rate. Tis policy change maintains the 
property tax base relative to economic growth, in line with other provincial taxes.
Speculation and Vacancy Tax Act
Speculation and Vacancy Tax Rate Increased
Effective January 1, 2027, the rate for foreign owners and untaxed worldwide earners, 
as well as others specified under the Speculation and Vacancy Tax Act currently taxed at 
3 per cent, will increase from 3 per cent to 4 per cent.
Te increased tax rate of 4 per cent will apply to the speculation and vacancy tax payable 
by these property owners based on the use of their residential properties during the 2027 
calendar year and onward. Tis will not impact taxpayers declaring based on the use of 
their residential properties in 2026 or before.
Increasing this speculation and vacancy tax rate will help ensure residential properties are 
used as homes rather than investments.
Taxation (Rural Area) Act 
Provincial Rural Area Property Tax Rates Set
In line with the change to school tax rate setting policy, starting in 2026, rural property 
taxes will be increased based on the 3-year average annual change in provincial nominal 
Gross Domestic Product. Tis replaces the previous approach of adjusting rural tax 
revenues by inflation plus tax on new construction. Te change is intended to maintain 
the property tax base relative to economic growth, in line with other provincial taxes.
A single rate applies to each property class province-wide, excluding utility and industrial 
properties in the Peace River Regional District.
Various Acts
Various Technical Measures
• Effective June 30, 2026, the Assessment Act is amended to clarify the existing practice 
that BC Assessment is not required to consider the effect of private encumbrances 
affecting use when determining the assessed value of a property.

--- page 98 ---
TAX MEASURES
88 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
• Effective August 4, 2023, the Income Tax Act is amended to allow Canada Revenue 
Agency to reduce renounced amounts for the B.C. mining flow-through share tax 
credit and the mining exploration tax credit.
• Effective on royal assent, the School Act and the Taxation (Rural Area) Act are 
amended to expand the definition of “eligible corporation” to include trusts that are 
for the benefit of one or more First Nations and corporations that are wholly-owned 
subsidiaries of other eligible corporations.
• Effective January 1, 2027, the Speculation and Vacancy Tax Act is amended so that 
property owners who do not declare by the March 31 due date will be charged a $250 
non-refundable late declaration penalty.
• Effective on royal assent, the Speculation and Vacancy Tax Act is amended to remove 
a property owner’s right to appeal an assessment arising from their own declaration 
that an exemption does not apply to their property under the Act.
• Effective on royal assent, the Property Transfer Tax Act is amended to allow a person to 
appeal the imposition of a gross negligence penalty to the Minister of Finance.
• Effective on royal assent, the Property Transfer Tax Act is amended to extend the 
limitation period for charging a person with an offence from one year to six years, 
aligning the limitation period for all offences under the Act.
• Effective on royal assent, the Property Transfer Tax Act is amended to clarify that 
residential property is defined as property that is classified as class 1 on the assessment 
roll for the applicable year.
• Effective February 18, 2026, the Provincial Sales Tax Act and Provincial Sales Tax 
Exemption and Refund Regulation are amended to enable sellers of goods to provide 
a point-of-sale exemption or refund to businesses purchasing goods for use outside of 
the province. Te new exemption will allow the purchaser to remove the goods from 
B.C. instead of requiring the seller to do so. To claim an exemption or refund, the 
purchaser must provide evidence that the goods are being shipped outside of B.C. for 
business use.

--- page 99 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 89
PART 3
|
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
1
Summary
B.C.’s economy saw mixed performance among sectors in 2025 amid U.S. tariffs and 
related global economic uncertainty, and declining B.C. population growth. Consumer 
spending on goods was strong through the first half of the year but has slowed in recent 
months. Te Bank of Canada (BoC) lowered its key interest rate by a full percentage 
point in 2025 and inflation has remained within the BoC’s target range. Residential 
construction remained above average in 2025 despite declining from the high levels 
of activity seen in recent years, and home sales were subdued in 2025. Meanwhile, 
investment saw steady growth despite headwinds from economic uncertainty. B.C.’s 
exports have been resilient amid U.S. tariffs and were unchanged compared to the 
prior year.
Te Ministry of Finance (Ministry) estimates that B.C.’s economy expanded by 
1.5 per cent in 2025. Looking ahead, the Ministry forecasts the economy to grow by 
1.3 per cent in 2026 before growth increases to 1.8 per cent in 2027. Modest growth 
is expected over the next two years due to trade uncertainty, as well as impacts from 
the federal government’s reduced immigration targets. As the economy adjusts to these 
factors, economic growth is expected to improve over the medium-term as immigration 
levels normalize and uncertainty over trade subsides. Over the medium-term 
(2028 to 2030), real GDP growth is expected to average 2.1 per cent annually.
Overall, the Ministry’s forecast for B.C. real GDP growth in the near-term is prudent 
compared to the average outlook provided by the Economic Forecast Council (EFC), 
while the medium-term outlook is within the range provided by the EFC.
1 Reflects information available as of January 29, 2026, unless otherwise indicated.
1.3
1.2
1.5
1.8
1.8
1.3
1.9
2.4
0.0
1.0
2.0
3.0
B.C. real GDP (annual per cent change)
Sources: B.C. Ministry of Finance; Economic Forecast Council
2026
2027
Economic Forecast Council
(January 6, 2026)
Ministry of Finance  
Budget 2026
Economic Forecast Council
(January 6, 2026)
Ministry of Finance  
Budget 2026
low
average
high
low
average
high
Ch art 3.1
M
inistry' s Ou tlook  for B.C. Comp ared to Private S ector

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Te main downside risks to B.C.’s economic outlook include a worsening global trade 
conflict, immigration and population volatility, housing market weakness, and a global 
climate of uncertainty that slows investment. Other risks include commodity price 
instability, renewed inflationary pressures, and climate change impacts.
British Columbia Economic Activity and Outlook
Te Ministry’s estimate for B.C. real GDP growth in 2025 is slightly higher at 
1.5 per cent from the projection of 1.4 per cent in the 2025 Second Quarterly Report. 
Te forecast for 2026 is unchanged from the 2025 Second Quarterly Report at 
1.3 per cent. Te updated outlook reflects support from government spending and 
an improved trade balance, which offset lower consumer spending, housing market 
weakness, and a moderation in the provincial capital plan. Nominal GDP growth in 
2025 has been revised up to 4.1 per cent from 3.8 per cent, and up to 4.4 per cent from 
4.1 per cent in 2026. Te upward revisions to nominal GDP reflect an improvement in 
the province’s trade balance, in part from higher export prices for commodities including 
copper and precious metals.
Slow to moderate gains are expected across the economy in 2026. Consumer spending is 
projected to see subdued growth as a lower provincial population impacts employment 
growth and spending plans. Exports and imports are expected to be relatively weak 
as trade uncertainty persists. Investment is also expected to see slower growth with 
residential construction relatively unchanged from 2025, while higher investment activity 
in energy projects offsets lower investment activity in other areas due to economic 
uncertainty.
Te economy is expected to grow slightly faster in 2027 as trade uncertainty eases and 
immigration returns to making a positive contribution to population growth, albeit at 
a lower rate. Higher residential investment and exports of LNG support the outlook, 
which is partly offset by lower government spending and the completion of current 
LNG-related investment projects. Medium-term economic activity is supported by the 
return of population growth to more typical levels supporting the labour market and 
consumer spending, ongoing increases of LNG exports, residential investment, and 
easing uncertainty around global trade.
7aEle 3.1   BrLtLVh CRluPELa (cRnRPLc ,nGLcatRrV
Third Quarter
Fourth Quarter
Annual1
Jul. to Sep. 2025
Oct. to Dec. 2025
Jan. to Dec. 2025
change from
change from
change from
All data seasonally adjusted, per cent change
Apr. to Jun. 2025
Jul. to Sep. 2025
Jan. to Dec. 2024
Employment …………………………………………
-0.4
+0.0
+1.1
Manufacturing shipments2 .…………………………
+2.7
-0.1
+0.3
Exports2 ………………………………………………
-2.4
+4.9
+0.0
Retail sales2…………………………………………
-1.0
-0.2
+6.2
Consumer price index1,3 ……………………………
+1.8
+1.9
+2.1
Housing starts ………………………………………
-1.6
-15.9
-3.6
Residential sales units ………………………………
+7.9
+1.5
-5.7
Residential average sale price ……………………
+2.3
+0.6
-2.9
Non-residential building permits 2 …………………
+44.7
+21.2
+14.3
1 Non-seasonally adjusted data                                   2 Data to November                                   
3 Quarterly calculations for CPI are year-over-year, e.g. Third Quarter is Jul. to Sep. 2025 change from Jul. to Sep. 2024

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
U.S. Tariff Assumptions
Te Budget 2026 economic outlook includes all tariffs and supports announced and 
enacted as of January 12, 2026. Compared with the 2025 Second Quarterly Report, the 
scope of tariffs is relatively unchanged. Te Ministry assumes that the Canadian federal 
government will support businesses using revenue generated from retaliatory tariffs.
Budget 2026 includes the following U.S. tariffs on Canadian exports:
• 35 per cent on all Canadian exports to the U.S. that are not compliant with the 
Canada-United States-Mexico Agreement (CUSMA), with a lower rate (10 per cent) for 
energy products and potash;
• 50 per cent on steel and aluminum products and content in derivatives;
• 50 per cent on copper products and content in derivatives;
• 25 per cent on automobiles, with tariffs applied to only the foreign-produced content 
of CUSMA-compliant automobiles;
• 25 per cent on automobile parts that are not compliant with CUSMA;
• 25 per cent on upholstered furniture, kitchen cabinets and vanities;
• 10 per cent on softwood timber and lumber (on top of existing anti-dumping and 
countervailing duties); and
• 25 per cent on medium- and heavy-duty vehicles and their parts and 10 per cent on buses.
Budget 2026 includes the following retaliatory tariffs on U.S. exports to Canada:
• 25 per cent on steel and aluminum products; and
• 25 per cent on U.S. vehicles that are not compliant with CUSMA, and 25 per cent on 
the U.S. content of CUSMA-compliant vehicles.
The share of Canadian exports to the U.S. that were compliant with CUSMA was 
roughly 38 per cent in 2024, but rose following the imposition of tariffs. In October 2025, 
U.S. Census Bureau data indicated that almost 90 per cent of the value of Canadian 
merchandise trade exported to the U.S. was duty free.
B.C. is less exposed to U.S. trade than other provinces, with nearly half of all goods 
exports going to non-U.S. destinations. Despite being less exposed to the U.S. than 
other provinces, B.C.’s outlook for international trade remains uncertain as Canada 
renegotiates CUSMA and works to diversify trade to new foreign and domestic markets. 
As the situation evolves, the Ministry will continue to incorporate new developments 
into the economic outlook.

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
92 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Labour Market
B.C.’s labour market saw moderate growth in 2025, as population growth slowed and 
employers adjusted to tariff-related economic uncertainty. Accordingly, the majority 
of net new jobs came during the first half of the year, while the second half of the year 
mostly trended down. Overall, employment increased by 1.1 per cent (+32,200 jobs) 
in 2025 with weaker growth in full-time employment (+0.6 per cent, +12,900 jobs) 
and faster growth for part-time employment (+3.3 per cent, +19,200 jobs). Job creation 
was led by the private sector (+18,900 jobs), with smaller gains in the public sector 
(+12,900 jobs) and self-employed workers (+400 jobs). Employment grew for men 
(+1.3 per cent, +20,000 jobs) and women (+0.9 per cent, +12,100 jobs), while the 
unemployment rate was 6.2 per cent for both.
On an industry basis, employment gains in 2025 were concentrated in the services sector 
(+22,800 jobs), led by professional, scientific, and technical services (+13,600 jobs); 
wholesale and retail trade (+7,100 jobs); and finance, insurance, real estate and leasing 
(+5,400 jobs). Employment in the goods sector increased by 9,400 jobs compared to 
2024, primarily driven by an increase in construction (+15,400 jobs) and manufacturing 
(+7,500 jobs) offsetting a decline in forestry, fishing, mining, oil and gas (-9,200 jobs).
Te provincial unemployment rate increased in 2025, as labour force growth outpaced 
job gains. B.C.’s unemployment rate was 6.3 per cent in December 2025, and averaged 
6.2 per cent overall in 2025, which is 0.6 percentage points higher than 2024, but 
0.6 percentage points below the national average. Meanwhile, the job vacancy rate 
declined in the first eleven months of 2025 compared to the same period in 2024, 
indicating less hiring activity.
Sources: Statistics Canada (Labour Force Survey); Haver Analytics
B.C. ePplR\Pent (thRuVanGV Va)
2200
2400
2600
2800
3000
2020
2021
2022
2023
2024
2025
Dec 2025 2944 
Ch art 3.2
B.C. E mp loyment

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
B.C.’s labour force expanded by 1.8 per cent in 2025, supported by the lagged impact 
of strong population growth in prior years; however, this was a slower pace of growth 
compared to the previous two years. B.C.’s labour force participation rate averaged 
65.0 per cent in 2025, down 0.2 percentage points compared to 2024. Te labour force 
participation rate for the prime-age workers (25 to 54 years age group) increased in 2025, 
reversing a decline in the previous year, while the average participation rate among youth 
(15 to 24 years age group) fell by 2.3 percentage points over the year.
Employee compensation (i.e. aggregate wages, salaries, and employers’ social 
contribution) grew at a slower pace than recent years in B.C., rising by 2.4 per cent 
year-to-date to September 2025 compared to the same period of 2024, reflecting a 
combination of job gains and rising wages. Te average hourly wage rate increased 
by 3.1 per cent in 2025 compared to 2024. On average, wages grew faster than the 
consumer price index for B.C., which increased by 2.1 per cent in 2025.
Outlook
Te near-term outlook for B.C.’s labour market has softened due to decreased 
immigration levels, as well as international trade disruptions. Te Ministry forecasts that 
employment in B.C. will increase by 0.4 per cent in 2026 (approximately +12,900 jobs), 
followed by annual growth of 0.8 per cent in 2027 (approximately +22,500 jobs), and 
growth of 1.0 per cent annually on average over the medium-term.
Te province’s unemployment rate is expected to average 5.9 per cent in 2026 and 
5.8 per cent in 2027, as employment growth outpaces slower labour force growth from 
reduced immigration levels. Te unemployment rate is expected to average around 
5.5 per cent over the 2028 to 2030 period.
Employee compensation is expected to increase to $227.7 billion in 2026 from 
$220.5 billion in 2025 (+3.3 per cent), a relatively slow pace, reflecting slower 
employment growth and stable wage growth. Employee compensation is forecast to grow 
by 3.3 per cent in 2027 as well, and average 3.9 per cent growth on average each year 
from 2028 to 2030 as employment growth improves.
Demographics
On October 1, 2025, B.C.’s population was 5.68 million people, down 0.2 per cent 
from the same date in 2024, driven by reductions in international migration reflecting 
lower federal immigration targets. During the January to September period of 2025, 
the province experienced a net outflow of 18,030 migrants, down from a net inflow 
of 95,573 people over the same period of 2024, with outflows increasing in each quarter 
of 2025.
Net international migration has gone from net inflows (+97,050 persons) in January to 
September of 2024 to net outflows (-19,978 persons) in the same period of 2025. Te 
decline in net international migration was a result of a significant decline in the number 
of net non-permanent (temporary) residents from +58,112 persons to -48,943 persons. 
Te change from net inflow to outflow was largely driven by a decline in temporary work 
permit holders (from +42,493 persons to -11,488 persons), and an accelerated outflow of 
study permit holders (from -677 persons to -32,202 persons). Overall, the net outflows 
of international migrants across Canada mostly reflects lower admission targets for 
non-permanent residents, while targets for permanent residents have also been reduced.

--- page 104 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
94 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
A rise in net interprovincial migration (from -1,477 persons to +1,948 persons) partly 
offset the overall outflow of migrants from B.C. in the first nine months of 2025. 
Interprovincial migration to B.C. has returned to net inflows in the two most recent 
quarters.
Outlook
Following a 0.5 per cent increase in 2025, B.C.’s July 1 population is projected to 
decrease by 0.9 per cent in 2026, reflecting net outflows of temporary residents following 
several years of elevated inflows. Population growth is expected to remain low in 2027, 
rising by just 0.4 per cent as outflows of temporary residents continue. Growth is 
expected to normalize from 2028 to 2030, rising by 1.1 per cent on average each year 
over this period.
B.C. is expected to experience a total net migration loss of about 38,100 persons in 
2025 followed by a decline of 14,100 persons in 2026. Tis is due to the expected net 
outflow of temporary residents in 2025 and 2026 reflecting lower federal immigration 
targets. Te province is expecting modest net inflows of interprovincial migrants in 
2025, before rising somewhat higher in 2026 and stabilizing to a more typical level over 
the medium-term. From 2027 to 2030, total net migration is expected to stabilize and 
average around +64,400 persons.
Consumer Spending and Inflation
Consumer spending rose significantly in the first half of last year, reflecting the lagged 
impact of high population growth in recent years, as well as the front loading of spending 
activity ahead of U.S. tariffs, lower interest rates, and lower inflation, but have trended 
down in the following months. Year-to-date to November 2025, B.C.’s nominal retail 
sales increased by 6.2 per cent, while inflation averaged 2.1 per cent in 2025, indicating 
growth in sales volumes as well. Year-to-date sales were led by higher spending at 
motor vehicles and parts dealers (+13.4 per cent), partly due to front-loaded spending 
ahead of tariffs on automobiles, and sporting goods, hobby, musical instrument, book 
and miscellaneous retailers (+19.4 per cent). Tese gains were partly offset by declines 
in spending at gasoline stations and fuel vendors (-3.3 per cent), reflecting lower 
gasoline prices.

--- page 105 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 95
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Sales at food services and drinking places in B.C., a component of the service sector, rose 
by 5.4 per cent year-to-date to November 2025 compared to the same period of 2024, 
partly due to higher prices.
Last year, consumer sentiment in B.C. and across Canada was weighed down by 
uncertain economic conditions amid U.S. tariffs. Te consumer confidence index 
for B.C. averaged 62.9 points in 2025, 13.4 points lower than 2024 and well below 
historical averages, and remained weak in January 2026. At the national level, the Bank 
of Canada’s Canadian Survey of Consumer Expectations released in January 2026 reported 
consumers’ main concerns were over high prices and economic uncertainty related to 
international trade.
B.C.’s annual CPI inflation rate was 2.1 per cent in 2025, the lowest annual growth 
rate since 2020. Price growth in 2025 was led by shelter (+2.8 per cent). While shelter 
inflation was the largest contributor to headline inflation in 2025, it slowed substantially 
for both rented and owned accommodation compared to the prior three years, when 
shelter inflation ranged between 5.7 per cent and 7.6 per cent. Food (+3.2 per cent) 
was also a significant contributor to headline inflation, driven by groceries. Lower prices 
for gasoline (-7.6 per cent), partly due to the removal of the B.C. consumer carbon tax, 
moderated headline inflation in 2025.
Ch art 3.3
B.C. R etail S ales
5000
6000
7000
8000
9000
10000
2020
2021
2022
2023
2024
2025
Sources: Statistics Canada; Haver Analytics
B.C. retaLl ValeV ( PLllLRnV Va)
1RY 2025 9641

--- page 106 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
96 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Outlook
Te Ministry estimates that real household consumer spending increased by 2.9 per cent 
in 2025, driven by higher spending on goods. Household consumption is expected to 
grow by 1.5 per cent in 2026 and 2.2 per cent in 2027, as spending on goods is more 
subdued amid lower population growth, while spending on services is expected to be 
steady. Annual growth is expected to average 2.6 per cent over the 2028 to 2030 period.
Te Ministry estimates that nominal retail sales eased in the latter part of 2025, but 
overall grew by 5.8 per cent in 2025. Retail sales are forecast to moderate to 2.4 per cent 
growth in 2026, rise to 3.3 per cent in 2027, and average 3.8 per cent annual growth 
from 2028 to 2030.
Consumer price growth is expected to remain relatively constant, with factors 
contributing to upward price pressure (such as tariffs and food inflation) partly offset by 
downward pressure on prices from lower population growth and lower demand. Overall, 
consumer price inflation is forecast to be 2.1 per cent in 2026, and 2.0 per cent in 2027 
and for the balance of the forecast horizon.
Ch art 3.4
B.C. I nflation
1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2020
2021
2022
2023
2024
2025
Sources: Statistics Canada; Haver Analytics
B.C. CRnVuPer PrLce ,nGe[ (\earRYer\ear per cent change)
Dec 2025 1.7

--- page 107 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 97
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Housing
B.C. housing starts totalled 44,193 units in 2025, showing resilience to economic 
uncertainty and related headwinds. Tis was a decline of 3.6 per cent compared to 
2024, but remained above the ten-year historical average of 43,187 units. Multiple-unit 
housing starts decreased by 3.6 per cent while single-unit housing starts fell by 
3.5 per cent. Among Census Metropolitan Areas (CMA) in B.C., housing starts were 
lower in 2025 in Kelowna (-31.4 per cent) and Vancouver (-3.3 per cent), but were 
higher in Abbotsford (+79.6 per cent) and Victoria (+16.1 per cent). Home completions 
saw record high levels in Vancouver and Kelowna in 2025, growing by 20.5 per cent and 
86.3 per cent, respectively. Home completions in Abbotsford (+25.6 per cent) also saw 
significant growth, while Victoria decreased (-10.9 per cent).
B.C.’s home sale market was subdued in 2025 due to economic uncertainty, declining 
in the first half of the year with moderate upward movement in the second half of 
the year. Overall in 2025, home sales were down 5.7 per cent compared to 2024, 
and averaged 5,852 units per month, well below the ten-year average of 7,642 units. 
Te decline was concentrated in Greater Vancouver (-10.2 per cent) and the Fraser Valley 
(-16.5 per cent), while higher sales activity in Okanagan-Mainline (+8.1 per cent) and 
the Kootenay region (+7.2 per cent) provided some offset.
Ch art 3.5
B.C. H ou sing S tarts
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2020
2021
2022
2023
2024
2025
B.C. housing starts (annualized units, sa)
Sources: Canada Mortgage and Housing Corporation; Haver Analytics              
* Historical average from Jan. 2015 to Dec. 2024
Dec 2025: 48,256
Ten-Year Historical Average*: 43,187

--- page 108 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
98 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
With muted demand throughout the year, the MLS average home sale price decreased 
by 2.9 per cent on average in 2025. Similar to home sales, the MLS average home sale 
price fell in the first half of the year before recovering some of the decline in the second 
half of the year. Meanwhile, growth in MLS composite benchmark house prices (which 
account for differences in dwelling types and quality in each region) varied by region, 
where declines were seen in the Fraser Valley (-4.2 per cent) and Greater Vancouver 
(-2.1 per cent), while prices increased in the Vancouver Island (+2.7 per cent) and 
Victoria (+2.0 per cent) regions.
Ch art 3.6
B.C. H ome S ales and Price
0
5000
10000
15000
20000
0
300000
600000
900000
1200000
2020
2021
2022
2023
2024
2025
Sources: Canadian Real Estate Association; Haver Analytics
B.C. 0/6 aYerage hRPe Vale prLce 
(GRllarV Va)
B.C. 0/6 hRPe ValeV 
(unLtV Va)
6aleV Dec 2025 6033
 PrLce Dec 2025 953238
Ch art 3.7
G reater V ancou ver H PI  Bench mark  Price
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2020
2021
2022
2023
2024
2025
MLS HPI benchmark price in Greater Vancouver
(dollars, nsa)
Sources: Canadian Real Estate Association; Haver Analytics
Single Family Home Price Dec 2025: 
$1,887,800
Townhouse Price Dec 2025: 
$1,056,600
Apartment Price Dec 2025: 
$710,00

--- page 109 ---
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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
After two years of declines, residential building permits, a leading indicator of home 
construction, saw strong growth last year. Year-to-date to November 2025, the value 
of residential building permits increased 13.5 per cent compared to the same period 
of 2024, and the number of residential units permitted increased 11.4 per cent. 
Te increase was driven by higher multiple-unit dwelling permits, which were partly 
offset by lower single-unit dwelling permits. Among CMAs, building permits were driven 
by increases in Vancouver, Abbotsford-Mission, Chilliwack, and Victoria, while permit 
values declined in Nanaimo and Kelowna.
Outlook
Te Ministry forecasts home sales to increase by 9.7 per cent in 2026 and by 5.2 per cent 
in 2027, which is improved activity compared to the low levels seen since 2023, but 
still below historical averages. Home sales are expected to average 2.3 per cent annual 
growth in the 2028 to 2030 period, as housing market activity returns to more typical 
levels. Te average home sale price is expected to rise by 3.2 per cent in 2026, followed 
by 2.3 per cent in 2027, and then grow by 2.7 per cent over the medium-term. Putting 
unit sales and prices together, the total value of home sales is forecast to increase by 
13.1 per cent in 2026, 7.6 per cent in 2027, and then average 5.1 per cent annual 
growth from 2028 to 2030.
Te Ministry expects B.C. housing starts to total approximately 44,210 units in 
2026 and 45,920 units in 2027, below the record high levels seen from 2021 to 
2023, but above the ten-year average. Home construction is expected to average 
around 48,900 units per year over the 2028 to 2030 period. Government actions to 
encourage homebuilding and private and public sector investment support the outlook, 
particularly in the medium-term, while the near-term outlook is impacted by economic 
uncertainty and lower population growth.
Business and Government
Te total value of non-residential permitting increased over the first eleven months 
of 2025, rising by 14.3 per cent compared to the same period of 2024. Te increase 
was driven by higher permit issuance for institutional and governmental buildings 
(+62.3 per cent), partly due to higher permitting values for government buildings, 
and school and education buildings. Commercial building permit values also increased 
(+9.8 per cent), driven by higher permit values for hotels and restaurants, laboratories, 
and trade and services. Meanwhile, a substantial decline was observed in industrial 
building permits (-57.8 per cent) following high levels in 2024, as permit values for 
factories and plants, and transportation and utilities declined.
Small business confidence fell sharply in the first half of 2025 as the U.S. announced and 
implemented tariffs. However, in recent months, the proportion of B.C. small business 
owners expecting their business’ performance to be stronger over the next year increased 
substantially. A majority of small businesses in B.C. reported in January 2026 that 
insufficient demand (domestic or foreign) was a limitation on sales or production growth.

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
100 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Activity in B.C.’s international tourism sector remains relatively unchanged, with 
travellers entering B.C. rising by 0.4 per cent year-to-date to November 2025 compared 
to the same period of 2024 and averaging 695,194 international travellers per month. 
Te number of U.S. visitors declined by 0.6 per cent over this period, trending lower 
following a high level of visitors at the beginning of the year. Te number of non-U.S. 
visitors reached their highest level since 2019 in October 2025, but have not yet 
surpassed pre-pandemic levels. Overall, the number of non-U.S. visitors to B.C. rose 
4.0 per cent year-to-date to November 2025 compared to the same period of 2024.
Outlook
B.C.’s investment outlook is complex, supported by government policy at multiple levels 
and low interest rates, but weighed down by global economic uncertainty. Residential 
investment is expected to improve over the forecast horizon. Non-residential investment 
has an uneven growth path due to the timing of investment in current major energy 
projects, an uncertain economic environment, and moderation in the provincial capital 
plan. Overall, the Ministry estimates that total real investment grew by 2.7 per cent 
in 2025, and expects growth of 1.5 per cent in 2026. Te Ministry forecasts total real 
investment to increase by 0.1 per cent in 2027, and then average 0.7 per cent growth 
annually over the 2028 to 2030 period.
In 2025, real business investment is estimated to have decreased by 0.5 per cent, 
reflecting the timing of investment in major energy projects in the province as well 
as lower residential investment. Real business investment is expected to see moderate 
growth of 1.3 per cent in 2026. Growth is expected to slow to 0.7 per cent in 2027 
and decline by 0.5 per cent in 2028 as higher residential investment is offset by lower 
non-residential investment as current major LNG projects near completion. Real business 
investment is expected to grow by 2.5 per cent on average annually in 2029 and 2030.
Real expenditure on goods and services by all levels of government is estimated to have 
increased by 2.6 per cent in 2025 and is forecast to increase by 1.5 per cent in 2026. 
Te Ministry expects real government spending to decline by 0.5 per cent in 2027 and 
grow slowly by 0.2 per cent in 2028, as the federal government increases fiscal discipline 
and the B.C. government continues expenditure management. Real government 
spending growth is expected to average 1.4 per cent annually in 2029 and 2030.
Following estimated growth of 8.1 per cent in 2025, the Ministry expects nominal net 
operating surplus of corporations (an approximation of corporate profits) to increase by 
9.6 per cent in 2026 and 4.6 per cent in 2027 largely reflecting improved nominal GDP 
growth. Net operating surplus is expected to continue to grow over the 2028 to 2030 
period, increasing between 3.4 per cent and 5.3 per cent annually.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 101
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
External Trade and Commodity Markets
B.C. merchandise exports in 2025 were resilient to challenges from the imposition of 
U.S. tariffs, volatile commodity prices, and uncertain future trade policies. Year-to-date 
to November 2025, the value of B.C. goods exports was unchanged compared to 
the same period of 2024, trending down following tariff-related stockpiling earlier 
in the year. Year-to-date performance across industries has been mixed. Declines in 
exports were largest for coal (-21.2 per cent), pulp (-9.7 per cent), and softwood 
lumber (-6.3 per cent). Meanwhile, exports were higher for other energy products 
(which includes petroleum and petroleum products, +23.5 per cent), copper ores and 
concentrates (+18.4  per cent), and natural gas (+26.9 per cent).
In the first eleven months of 2025, the value of merchandise exports from B.C. 
have declined the most to Japan (-20.0 per cent), the U.S. (-2.7 per cent), South 
Korea (-15.5 per cent), and India (-42.2 per cent), and have risen the most to China 
(+24.9 per cent) and Mexico (+260.0 per cent). Underlying the overall declines was lower 
exports of energy products, largely due to lower coal prices, to Japan (-38.6 per cent), 
South Korea (-29.8 per cent), and India (-44.1 per cent). Lower exports to the U.S. 
was largely driven by lower exports of softwood lumber (-10.3 per cent), lower value of 
exports of electricity (-28.2 per cent), and fabricated metal products (-18.8 per cent). 
Gains in exports to China were driven by copper ores and concentrates (+66.4 per cent) 
and other energy products (+362.4 per cent).
B.C.’s manufacturing shipments increased slightly (+0.3 per cent) year-to-date to 
November 2025 compared to the same period of 2024, mainly due to increased 
shipments of food manufacturing (+7.5 per cent) and primary metal products 
(+11.2 per cent), offsetting declines in wood products (-5.8 per cent) and transportation 
equipment products (-11.1 per cent).
Ch art 3.8
B.C. E x p orts
2500
3000
3500
4000
4500
5000
5500
6000
6500
2020
2021
2022
2023
2024
2025
Source: BC Stats
B.C. LnternatLRnal PerchanGLVe e[pRrtV ( PLllLRnV Va)
1RY 2025 4818

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
102 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Te price of Western spruce-pine-fir (SPF) 2x4 lumber was volatile in 2025 as the U.S. 
imposed new tariffs and increased anti-dumping and countervailing duties on Canada’s 
lumber exports, as well as price impacts from the front-loading of inventories ahead of 
broad U.S. tariff announcements early in 2025. SPF prices averaged $467 US/000 board 
feet in 2025, rising 13.2 per cent compared to 2024.
Oil prices have fallen in 2025, with an increase in global supply (particularly among 
members of the Organization of Petroleum Exporting Countries) and softening global 
demand outweighing risks from geopolitical conflicts and trade uncertainty. In 2025, 
the West Texas Intermediate (WTI) oil price averaged $65.46 US per barrel, down 
14.5 per cent compared to 2024. Meanwhile, the plant inlet price of natural gas 
increased 22.7 per cent in 2025 compared to 2024, averaging $0.90 C/GJ, but remained 
below historical levels. Natural gas production continued to rise in B.C. in 2025, 
supported by LNG Canada’s first exports in June 2025.
Te average metallurgical coal price fell by 21.8 per cent in 2025, reflecting high global 
supply and weak steel production in Asia. Prices for lead also declined last year by 
5.4 per cent. Meanwhile, the price of safe-haven commodities gold and silver increased 
significantly by 44.1 per cent and 41.5 per cent, respectively, along with increases in the 
price of copper (+8.8 per cent), molybdenum (+3.9 per cent), and zinc (+3.2 per cent).
Outlook
Real exports of goods and services are estimated to have declined 1.0 per cent in 
2025, reflecting the impact of U.S. trade policy and global trade uncertainty. In 2026, 
real exports of goods and services are projected to increase by a modest 1.6 per cent, 
reflecting weak global demand and continued trade uncertainty. Te Ministry expects 
real exports of goods and services to grow by 4.2 per cent in 2027, and range between 
2.7 per cent and 3.8 per cent annually in the 2028 to 2030 period. LNG Canada 
reaching full export-capacity in 2026 provides some offset to the negative impact of U.S. 
tariffs in the short-term, while Woodfibre LNG and Cedar LNG support the outlook in 
the latter years.
Te price of lumber is forecast to average $470 US/000 board feet in 2026 and 
$490 US/000 board feet in 2027, partly reflecting the higher countervailing duty and 
anti-dumping rates imposed on softwood lumber exports to the U.S. Te price of lumber 
is expected to average $495 US/000 board feet between 2028 and 2030. Te plant inlet 
price for natural gas is expected to average $2.18 C/GJ in 2026/27, $2.39 C/GJ in 
2027/28, and $2.48 C/GJ in 2028/29.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 103
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Risks to the Economic Outlook
U.S. trade policy and changes to Canadian immigration policies have created an 
uncertain environment for B.C.’s economy. Tere are upside risks including the potential 
for more supportive interest rates, increased activity from lower interprovincial trade 
barriers, and expedited investments in major private sector capital projects. Downside 
risks to B.C.’s economic outlook include the following:
• continued uncertainty about the magnitude and scope of U.S. tariffs on Canadian 
exports, impacting trade flows, employment, business investment, inflation, and 
consumer spending;
• uncertainty surrounding the renewal of CUSMA;
• volatile immigration levels that could limit the supply of labour and weigh on 
economic activity;
• a pullback in residential investment and weak home sales due to economic uncertainty;
• severe climate-related events disrupting the lives and livelihoods of British Columbians, 
destroying productive capital, and impacting economic activity;
• weaker global economic activity and volatile prices for B.C.’s major commodity 
exports due to geopolitical conflicts and economic challenges in Europe and Asia; and
• timing of investment, operations and exports related to major private sector capital 
projects in the province.

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
104 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
External Outlook
Te economies of B.C.’s major trading partners performed relatively well in 2025 
compared to low expectations following the threat and introduction of U.S. tariffs. 
Trough the third quarter (July to September) of 2025, the Canadian economy has 
exceeded expectations overall, while investment conditions remain weak and are likely 
to stay subdued in the near-term due to ongoing U.S. trade uncertainty. U.S. economic 
activity declined in the first quarter (January to March) but strengthened throughout 
the year, supported by household consumption and investment in data centres. Japan’s 
economy is estimated to have performed better in 2025 following a contraction in 
2024. Meanwhile, China’s economy grew at a similar pace in 2025 as in 2024, reflecting 
a redirection of exports toward non-U.S. markets that partly offset slow consumer 
spending and property sector weakness. Te euro zone remained steady, posting three 
consecutive quarterly expansions in 2025. Despite exceeding expectations in 2025, 
growth among B.C.’s major trading partners is expected to slow in 2026 amid trade 
uncertainty and pessimistic domestic sentiment, particularly in Europe and Canada. 
Central banks in Canada, the euro zone, and the United States lowered interest rates in 
2025 as inflation stabilized. Market expectations for 2026 are diverging with the Bank 
of Canada expected to hold rates through most of the year and the U.S. Federal Reserve 
expected to continue rate decreases.
Canada
Te Canadian economy grew at an annualized rate of 2.6 per cent in the third quarter of 
2025, more than reversing a 1.8 per cent decline in the second quarter (April to June). 
Growth in the third quarter was driven by an improved trade balance, reflecting a decline 
in imports (-8.6 per cent) and a modest increase in exports (+0.7 per cent), as well as 
higher government capital investment (+12.2 per cent). Some of these gains were offset 
by declines in inventories, government spending (-1.7 per cent), and consumer spending 
(-0.4 per cent). Canadian business investment has been moderate through 2025 as higher 
residential investment has been partially offset by declining investment in machinery and 
equipment. On a year-to-date basis through the third quarter of 2025, Canadian GDP 
grew by 2.0 per cent compared with the same period in 2024.
Ch art 3.9
Canadian R eal G DP
1900
2000
2100
2200
2300
2400
2500
2600
      2020
      2021
      2022
      2023
      2024
      2025
Sources: Statistics Canada; Haver Analytics
CanaGLan real GDP (chaLneG 2017  ELllLRnV Vaar)
43 2025 2502

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 105
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Employment in Canada increased by 1.4 per cent in 2025 (+298,200 jobs), marking 
the slowest pace of employment growth since 2020. Within age groups, employment 
increased among youth aged 15 to 24 and 25 to 54 year olds, while it decreased slightly 
among those aged 55 and older. Labour force growth outpaced employment growth 
and the unemployment rate rose to 6.8 per cent in 2025, up from 6.3 per cent in 2024 
and reached its highest level since 2021. Meanwhile, the job vacancy rate continued to 
decline through the first eleven months of 2025, reaching its lowest level since 2017 
which indicates less hiring activity.
National home sales activity remained subdued in 2025. Both unit home sales and 
average sale prices declined in the first quarter, before recovering somewhat later in the 
year. Overall, MLS home unit sales fell by 1.9 per cent in 2025, while the average home 
sale price declined by 1.1 per cent. Heightened economic uncertainty and shocks related 
to U.S. tariffs offset the supportive impact of lower interest rates, limiting the recovery in 
housing market demand.
Following declines in 2022 and 2023, Canadian housing starts continued to recover in 
2025 increasing by 5.6 per cent. Within housing categories, multiple-unit starts rose by 
8.3 per cent, while single-unit starts were down 4.1 per cent. Among CMAs, Montreal 
(+58.1 per cent), Calgary (+13.6 per cent), Edmonton (+16.1 per cent), and Ottawa 
(+37.6 per cent) made the largest contributions to national housing starts growth, while 
Toronto (-30.8 per cent) partially offset these gains.
Despite Canadian counter-tariffs on U.S. goods that put upward pressure on the cost 
of imported goods, consumer price inflation in Canada remained within the Bank of 
Canada’s 1 to 3 per cent target range last year. In 2025, national inflation averaged 
2.1 per cent. Shelter (+3.0 per cent) and food (+3.2 per cent) remained the main 
contributors to headline inflation. Meanwhile, year-to-date to November 2025, nominal 
retail sales increased by 4.4 per cent compared with the same period of 2024, while real 
retail sales rose by 2.6 per cent over the same period.
Canadian international trade was significantly affected by new and changing U.S. 
tariffs in 2025. In the first quarter of 2025, total goods exports increased as exporters 
front-loaded shipments ahead of the tariff increases, but exports declined thereafter. 
Year-to-date through November 2025, the value of total merchandise exports edged 
down 0.1 per cent, with declines in six of the eleven months. On an industry basis, 
exports of energy products (-3.4 per cent) and basic and industrial chemicals, plastics, 
and rubber products (-10.5 per cent) contributed to the year-to-date decline partially 
offset by higher exports of metal and non-metallic mineral products (+12.4 per cent). 
Regarding trade in goods facing significant U.S. tariffs, exports in the first eleven months 
of the year fell for motor vehicles and parts (-3.7 per cent) and aluminum and aluminum 
alloys (-8.5 per cent) but rose for copper and copper alloys (+42.3 per cent). By trading 
partner, exports to the United States recorded a decline (-4.9 per cent), while exports 
to non-U.S. destinations increased (+15.9 per cent). Meanwhile, international exports 
of services performed better; year-to-date through November 2025, Canadian services 
exports increased by 2.9 per cent.

--- page 116 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
106 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Outlook
In January 2026, the Consensus survey projected that Canadian real GDP would increase 
by 1.3 per cent in 2026, and by 1.9 per cent in 2027.
CUSMA negotiations in 2026 are expected to keep economic uncertainty elevated. 
As a result, Canadian economic growth is expected to soften in 2026. Te Ministry 
prudently assumes that the Canadian economy will grow by 1.2 per cent in 2026, 
reflecting downside risks to international trade, and by 1.7 per cent in 2027. Over the 
medium-term, real GDP growth is projected to average 1.8 per cent annually.
1.7
1.7
1.2
0.8
0.7
1.1
1.0
1.1
1.1
1.1
1.1
1.2
1.3
0.0
1.0
2.0
3.0
-an
Mar
May
-ul
SeS
1oY
-an
)RrecaVt annual per cent
change Ln CanaGLan real GDP 2026 
Source:  Consensus Economics
7Ke cKart aEoYe reSresents forecasts for CanaGian real *'3 JroZtK in  as SolleG on sSecific Gates. For e[amSle 
forecasters surYeyeG on -anuary   KaG an aYeraJe  CanaGian real *'3 JroZtK forecast of . Ser cent 
ZKile on -anuary   tKey forecast  CanaGian real *'3 to JroZ Ey . Ser cent. 
2025
2026
Ch art 3.1 0
Consensu s Ou tlook  for Canada in 2026
7aEle 3.2   CanaGLan 5eal GDP )RrecaVt CRnVenVuV YerVuV B.C. 0LnLVtr\ RI )Lnance 


3er cent cKanJe in real *'3
B.C. Ministry of Finance  ««««««««««...««««««««...........
.
.
Consensus Economics  -anuary 
««««««««««...«««««
.
.

 Comparable month to %C 0inistry of )inance forecast

--- page 117 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 107
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
United States
U.S. real GDP expanded by an annualized 4.4 per cent in the third quarter of 2025, 
the strongest growth since the third quarter of 2023, following annualized growth of 
3.8 per cent in the second quarter of 2025. Growth in the third quarter of 2025 was led 
by consumer spending, while net exports increased, reflecting higher exports and lower 
imports. Business investment was mixed, with gains in intellectual property products and 
information processing equipment offset by lower inventories and residential investment. 
Te imposition of tariffs on imports into the U.S. has yet to have a substantial 
macroeconomic impact on the country. Year-to-date through the third quarter of 2025, 
U.S. GDP grew by 2.1 per cent compared with the same period of 2024.
U.S. employment increased by just 0.9 per cent (+1.4 million jobs) in 2025, 
representing the slowest annual employment growth since 2020. Te unemployment 
rate was 4.4 per cent in December 2025 and averaged 4.3 per cent in 2025, the second 
consecutive annual increase after a low of 3.6 per cent in 2023.
U.S. housing starts in 2025 continued the downward trend that began in 2022. 
Year-to-date to October 2025, housing starts declined by 0.8 per cent compared with 
the same period of 2024. Te decline was driven by a contraction in single-unit housing 
starts, which fell by 7.0 per cent, while multiple-unit housing starts increased by 
16.9 per cent over the same period. Meanwhile, new and existing home sales were little 
changed in 2025, with median prices of existing homes seeing a modest increase and new 
home prices declining.
Ch art 3.1 1
U .S . R eal G DP
18000
19000
20000
21000
22000
23000
24000
25000
      2020
      2021
      2022
      2023
      2024
      2025
Sources: U.S. Bureau of Economic Analysis; Haver Analytics 
8.6. real GDP (chaLneG 2017 86 ELllLRnV Vaar)
43 2025 24027

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BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
108 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Retail and food services sales in the U.S. saw faster growth in 2025 than in the preceding 
two years. Year-to-date to November, sales rose by 4.2 per cent compared with the same 
period last year. However, estimates of real retail and food services sales indicate more 
modest growth over 2025. Consumer price inflation was between 2 and 3 per cent 
throughout 2025, although it was closer to 3 per cent in the second half of 2025. CPI 
inflation averaged 2.7 per cent in 2025. Shelter and food were the main contributors to 
inflation, while energy prices rose modestly towards the end of the year.
Outlook
In January 2026, the Consensus survey projected that U.S. real GDP will grow 
2.4 per cent in 2026 and 2.0 per cent in 2027.
U.S. employment has weakened and trade policy uncertainty is expected to remain 
elevated and poses a risk to the outlook going forward. Te Ministry prudently projects 
that U.S. real GDP will grow by 2.1 per cent in 2026 and 1.9 per cent in 2027. In the 
medium-term, the Ministry assumes that growth will average 1.8 per cent annually.
7aEle 3.3   8.6. 5eal GDP )RrecaVt CRnVenVuV YerVuV B.C. 0LnLVtr\ RI )Lnance 


3er cent cKanJe in real *'3
B.C. Ministry of Finance  ««««««««««...««««««««...........
.
.
Consensus Economics  -anuary 
 ««««««««««...««««
.
.

 Comparable month to %C 0inistry of )inance forecast
Ch art 3.1 2
U .S . H ou sing S tarts
900
1100
1300
1500
1700
1900
2020
2021
2022
2023
2024
2025
Sources: U.S. Census Bureau; Haver Analytics
8.6. hRuVLng VtartV (thRuVanGV RI annualL]eG unLtV Va)
2ct 2025 1246

--- page 119 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 109
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Asia
China’s real GDP grew by 5.0 per cent in 2025, matching the growth rate recorded 
in 2024. While economic activity started strong in the first half of 2025, momentum 
eased in the second half of the year. Overall growth reflected strong export performance 
amid U.S. tariffs, as shipments were redirected away from the U.S. toward Europe 
and Southeast Asia, and industrial production posted its strongest growth since 2021. 
Meanwhile, domestic demand was weak. Retail sales remained subdued in 2025, 
infrastructure spending declined, and the real estate downturn continued.
Japan’s economy shrank by 2.3 per cent annualized in the third quarter of 2025, 
following 2.1 per cent growth in the second quarter. Te third quarter contraction 
was driven mainly by weak residential and business investment, with exports also 
contributing to the decline. Consumer spending grew modestly in the third quarter and 
was insufficient to fully offset declines elsewhere. Despite the third quarter contraction, 
Japan’s GDP was 1.4 per cent higher year-to-date to the third quarter compared to 
the same period of 2024. Meanwhile, the Bank of Japan continued interest rate hikes 
in 2025 as inflation remained above its target of 2 per cent, raising the policy rate 
to 0.75 per cent after over a decade of near-zero borrowing costs. Te Bank of Japan 
stated that they expect to continue raising rates if their economic and inflation forecasts 
materialize.
2.0
2.0
2.0
1.7
1.5
1.6
1.7
1.7
1.7
1.9
2.0
2.1
2.4
0.0
1.0
2.0
3.0
-an
Mar
May
-ul
SeS
1oY
-an
)RrecaVt annual per cent 
change Ln 8.6. real GDP 2026
Source:  Consensus Economics
7Ke cKart aEoYe reSresents forecasts for 8.S. real *'3 JroZtK in  as SolleG on sSecific Gates. For e[amSle forecasters 
surYeyeG on -anuary   KaG an aYeraJe  8.S. real *'3 JroZtK forecast of . Ser cent ZKile on -anuary  
tKey forecast  8.S. real *'3 to JroZ Ey . Ser cent.
2025
2026
Ch art 3.1 3
Consensu s Ou tlook  for th e U .S . in 2026

--- page 120 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
110 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Outlook
In January 2026, the Consensus survey projected that China’s real GDP will grow 
by 4.6 per cent in 2026 and 4.4 per cent in 2027. Te Ministry prudently forecasts 
that China’s economy will expand by 4.2 per cent in 2026, and 4.1 per cent in 2027, 
reflecting ongoing risks from geopolitical and trade tensions. In the medium-term, 
the Ministry forecasts growth to average 4.0 per cent annually.
Te January 2026 Consensus survey projects Japan’s real GDP to grow by 0.8 per cent 
in 2026 and 1.0 per cent in 2027. While consumer spending was stronger last year, 
uncertainty remains around exports and higher interest rates are expected to weigh 
on economic activity. Te Ministry prudently projects Japan’s economy to grow by 
0.5 per cent in 2026 and 0.6 per cent in 2027. Growth of 0.5 per cent is expected in 
each year from 2028 to 2030.
Europe
Despite uncertainty surrounding U.S. tariffs on European trade, euro zone GDP 
performed well in 2025, exceeding expectations. GDP growth was 1.1 per cent 
(annualized) in the third quarter of 2025 and 1.5 per cent year-to-date through the third 
quarter. Among the large euro zone economies, Spain recorded the strongest year-to-date 
growth through the third quarter of 2025 compared with the same period of 2024, while 
France, Italy, and Germany posted more moderate growth. Although the unemployment 
rate in the euro zone fluctuated in the first half of the year, it remained at or below 
6.4 per cent for 2025, one of the lowest levels since the introduction of the euro in 1999. 
Te European Central Bank (ECB) cut its key interest rate by a cumulative 
100 basis points in the first half of 2025 and held rates unchanged for the remainder of 
the year, citing expectations that inflation would stabilize at its 2 per cent target over the 
2026 to 2028 period. Inflation stood at 1.9 per cent in December 2025.
Outlook
Te January 2026 Consensus expects euro zone real GDP to grow by 1.1 per cent in 2026 
and 1.4 per cent in 2027. Manufacturing continues to face trade headwinds which could 
impact growth prospects going forward. Te Ministry prudently projects that the euro 
zone economy will grow by 0.9 per cent in 2026 and 1.2 per cent in 2027. Growth of 
1.2 per cent is expected in each year from 2028 to 2030.

--- page 121 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 111
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Financial Markets
Interest Rates
Te Bank of Canada (BoC) and the U.S. Federal Reserve (Fed) resumed cutting interest 
rates in the fall of 2025 after holding them through the spring and summer. Both central 
banks cited moderating economic activity as key reasons for reducing rates. Since 2024, 
the BoC has lowered its policy rate by more than the Fed. In 2026, modest rate cuts are 
forecast for the Fed while the BoC is expected to keep rates flat for most of the year.
In 2025, the BoC cut the policy interest rate by a total of 100 basis points, bringing it to 
2.25 per cent by the end of the year. After two rate cuts in the first three months of the 
year, the BoC held rates from April to August, citing heightened uncertainty around U.S. 
tariffs. Te BoC noted it was difficult to assess which effect would dominate, the risk 
of higher input price inflation from tariffs or the dampening effect of slower economic 
activity on demand. In September, the BoC resumed rate cuts in response to weaker 
economic conditions and lower inflation risks. Te BoC ended the year by holding 
rates and maintained them into 2026, reflecting moderate economic activity and stable 
inflation projections.
From January to August 2025, the Fed paused interest rate cuts, reflecting elevated 
inflation, strong economic activity, and low, stable unemployment. Te Fed resumed 
rate cuts from September to December, delivering a cumulative 75 basis point reduction, 
citing concerns over moderating economic activity and a rise in unemployment despite 
inflation remaining somewhat elevated. Te Fed began 2026 with a pause in rate cuts, 
noting that the unemployment rate was showing signs of stabilizing.
Ch art 3.1 4
I nterest R ate F orecasts
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2020
2021
Per cent
Sources: BanN of CanaGa; 8.S. FeGeral 5eserYe; anG B.C. Ministry of Finance forecasts.
BanN of CanaGa
2YerniJKt 
7arJet 5ate
8.S. FeGeral FunGs 
7arJet 5ate
Forecast
.
2022
2023
2024
2025
2026
2027
2028
2029
2030
.

--- page 122 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
112 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Outlook
Since the Canadian economy performed better than expected in 2025, private sector 
forecasters are not expecting further rate cuts. In contrast, the Fed is expected to resume 
reducing interest rates further in 2026. Based on the average of six private sector forecasts 
as of January 5, 2026, the Ministry projects that Canada’s overnight target rate will 
average 2.28 per cent in 2026 and 2.60 per cent in 2027. By comparison, the U.S. 
federal funds rate is expected to average 3.39 per cent in 2026 and 3.17 per cent in 2027.
According to the same six private sector forecasters, the Canadian three-month Treasury 
bill interest rate is expected to average 2.27 per cent in 2026 and 2.61 per cent in 2027. 
Meanwhile, the 10-year Government of Canada bond rate is assumed to be 3.34 per cent 
in 2026 and 3.49 per cent in 2027.
Exchange Rate
In 2025, the Canadian exchange rate depreciated by 2.0 per cent, falling from 
73.0 US cents in 2024 to 71.5 US cents. Tis decline reflects a wider interest rate gap 
between Canada and the U.S. in 2025, as well as differences in economic performance. 
Te Canadian dollar appreciated in the first half of 2025, reflecting a general decline in 
value of the U.S. dollar against world currencies. Te Canadian dollar then depreciated 
through November 2025, impacted by lower oil prices and additional rate cuts by the BoC.
Table 3.4   Private Sector Canadian Interest Rate Forecasts
Average annual interest rate (per cent)
2026
2027
2026
2027
BMO ……………………………………..
2.20
2.31
3.33
3.41
CIBC ………………………………………
2.22
2.56
3.28
3.57
National Bank ……………………………
2.30
2.73
3.36
3.44
RBC ………………………………………
2.21
2.77
3.55
3.73
Scotiabank ………………………………
2.43
3.02
3.31
3.63
TD …………………………………………
2.24
2.25
3.22
3.15
Average (as of January 5, 2026) ……
2.27
2.61
3.34
3.49
3-month Treasury Bill
10-year Government Bond

--- page 123 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 113
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Outlook
Since the Fed is expected to cut interest rates further while the BoC is not expected to, 
private sector forecasters expect the Canadian dollar to appreciate against the US dollar. 
Based on the average of six private sector forecasts as of January 5, 2026, the Ministry 
assumes that the Canadian dollar will average 73.6 US cents in 2026 and 75.6 US cents 
in 2027.
60
70
80
90
Private Sector Average   
(%udget )
86 centVCanaGLan  (GaLl\ rate)
Sources: Bank of Canada and B.C. Ministry of Finance forecasts.
* Based on the average of private sector forecasts. 6econd 4uarterly 5eport  as of October 10, 2025 and %udget  
as of January 5, 2026.
78.1¢
Private Sector Average  
(6econd 4uarterly 5eport )
Forecast*
75.4¢
2020
2021
2022
2023
2024
2025
2026
2027
2030
2028
2029
Ch art 3.1 5
Private S ector E x p ectations for th e Canadian Dollar
Table 3.5   Private Sector Exchange Rate Forecasts
Average annual exchange rate (US cents/Canadian $)
2026
2027
BMO …………………………………………………………………………
73.9
76.0
CIBC …………………………………………………………………………
73.1
74.8
National Bank ………………………………………………………………
74.0
75.3
RBC …………………………………………………………………………
73.2
75.8
Scotiabank …………………………………………………………………
73.8
76.7
TD ……………………………………………………………………………
73.4
74.9
Average (as of January 5, 2026) ………………………………………
73.6
75.6

--- page 124 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
114 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
7aEle 3.6.1   GrRVV DRPeVtLc PrRGuct (GDP) BrLtLVh CRluPELa

 e





GrRVV DRPeVtLc PrRGuct at 0arNet PrLceV
± 5eal (chaLneG 2017  ELllLRnV) «««««««
341.0
346.2
350.6
356.9
363.7
371.3
379.4
           ( change) ««««««««««««««
1.1
1.5
1.3
1.8
1.9
2.1
2.2
± 1ominal current Srices  Eillions ««««««
.
.
.
.
.
.
.
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.
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           cKanJe ««««««««««««««
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      JooGs anG serYices ««..«««««««««
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.
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           cKanJe ««««««««««««««
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.
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,nYestment in fi[eG caSital ««««...««««««
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.
)Lnal GRPeVtLc GePanG «««««««..««««
366.4
376.4
382.0
386.6
391.6
399.2
408.3
          ( change) ««««««««««««««
0.0
2.7
1.5
1.2
1.3
1.9
2.3
E[Sorts of JooGs anG serYices «««««««..«
.
.
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.
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.
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,nYentory cKanJe «««««...«««««««««
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.
.
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Statistical GiscreSancy ««««««««««««
.
.
.
.
.
.
.
5eal GDP at ParNet prLceV «««...««««««
341.0
346.2
350.6
356.9
363.7
371.3
379.4
          ( change) ««««««««««««««
1.1
1.5
1.3
1.8
1.9
2.1
2.2
 1onSrofit institutions serYinJ KouseKolGs.
e B.C. Ministry of Finance estimate.
Forecast

--- page 125 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 115
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
7aEle 3.6.2   6electeG 1RPLnal ,ncRPe anG 2ther ,nGLcatRrV BrLtLVh CRluPELa







ComSensation of emSloyees  millions ««

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.
.
.
.
.
.
5etail sales  millions ««««««««««

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         cKanJe «««««««««««««
.
.
.
.
.
.
.
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.
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         cKanJe «««««««««««««
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         cKanJe «««««««««««««
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.
.
.
.
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.
.
 'omestic Easis; ZaJes salaries anG emSloyers
 social contriEutions.
e B.C. Ministry of Finance estimate.
Forecast
7aEle 3.6.3   /aERur 0arNet ,nGLcatRrV BrLtLVh CRluPELa







3oSulation tKousanGs at -uly  ««««««







         cKanJe ««««««««««««
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 ,nternational miJration incluGes net nonSermanent resiGents anG returninJ emiJrants less net temSorary resiGents aEroaG.
 7Ke ciYilian noninstitutionali]eG SoSulation  years of aJe anG oYer.
 3ercentaJe of tKe laEour force SoSulation in tKe laEour force.
 ComSonents may not sum to total Gue to rounGinJ.
e BC Stats estimate.
Forecast

--- page 126 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
116 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table 3.6.4   Major Economic Assumptions
2024
2025
2026
2027
2028
2029
2030
Real GDP
      Canada (chained 2017 $ billions) ……………
2,456
2,498
e
2,528
2,571
2,617
2,664
2,712
          (% change) …………………………………
2.0
1.7
1.2
1.7
1.8
1.8
1.8
      U.S. (chained 2017 US$ billions) ……………
23,358
23,872
e
24,374
24,837
25,309
25,764
26,228
          (% change) …………………………………
2.8
2.2
2.1
1.9
1.9
1.8
1.8
      Japan (chained 2015 Yen trillions) …………
584
591
e
594
598
601
604
607
          (% change) …………………………………
-0.2
1.2
0.5
0.6
0.5
0.5
0.5
      China (constant 2010 US$ billions) …………
14,849
15,591
16,246
16,912
17,589
18,292
19,024
          (% change) …………………………………
5.0
5.0
4.2
4.1
4.0
4.0
4.0
      Euro zone1 (chained 2020 Euro billions)
12,982
13,163
e
13,282
13,441
13,603
13,766
13,931
          (% change) …………………………………
0.8
1.4
0.9
1.2
1.2
1.2
1.2
Industrial production index (% change)
      U.S. ……………………………………………
-0.7
1.3
0.8
1.2
1.5
1.6
1.6
      Japan …………………………………………
-2.9
1.2
e
1.0
1.0
1.0
0.9
0.9
      China ……………………………………………
5.7
5.9
4.4
3.9
3.8
3.8
3.8
      Euro zone1 ……………………………………
-3.0
1.4
e
0.8
1.2
1.2
1.2
1.2
Housing starts (thousands)
      Canada …………………………………………
245
259
230
230
230
230
230
          (% change) …………………………………
2.1
5.6
-11.2
0.0
0.0
0.0
0.0
      U.S. ……………………………………………
1,367
1,355
e
1,345
1,370
1,385
1,400
1,400
          (% change) …………………………………
-3.7
-0.9
-0.7
1.9
1.1
1.1
0.0
      Japan …………………………………………
792
738
e
750
770
800
830
830
          (% change) …………………………………
-3.3
-6.8
1.6
2.7
3.9
3.8
0.0
Consumer price index 
      Canada (2002 = 100) …………………………
160.9
164.2
167.8
171.3
174.8
178.3
181.8
          (% change) …………………………………
2.4
2.1
2.2
2.1
2.0
2.0
2.0
Canadian interest rates (%)
      3-month Treasury bills ………………………
4.41
2.59
2.27
2.61
2.75
2.75
2.75
      10-year government bonds …………………
3.34
3.23
3.34
3.49
3.40
3.40
3.40
United States interest rates (%)
      3-month Treasury bills ………………………
5.18
4.21
3.26
3.10
3.00
3.00
3.00
      10-year government bonds …………………
4.21
4.29
4.09
4.15
4.05
4.00
4.00
Exchange rate (US cents / Canadian $) ………
73.0
71.5
73.6
75.6
77.0
77.9
78.1
British Columbia goods and services 
     Export price deflator (% change) ……………
-0.1
4.5 e
6.1
2.4
1.3
1.4
1.8
1 Euro zone (20) is Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania,
  Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain.
e B.C. Ministry of Finance estimate.
Forecast

--- page 127 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 117
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Te EFC forecasts improved economic 
growth of 1.9 per cent in 2027, followed 
by steady annual average real GDP growth 
of about 1.9 per cent in the medium-term 
(2028 to 2030) and over the long-term period 
(see Chart 1).
Te Council estimates that B.C.’s economy 
grew at a slightly slower rate than Canada in 
2025, partly due to weaker global demand for 
some of B.C.’s key exports and muted home 
sales activity. Te EFC expects B.C.’s economy 
to outperform the national average in 2026 and 
match Canadian economic output in 2027. 
Te Council forecasts B.C. real GDP growth to 
be slightly above Canada’s over the medium and 
long-term (see Chart 2).
T he Economic F orecast Council,  Budget 2026
Introduction
In accordance with the Budget Transparency and 
Accountability Act, the Minister of Finance, 
in preparing the provincial budget, consults 
with the Economic Forecast Council (the 
Council or EFC) on British Columbia’s 
economic outlook. Te 13-member Council is 
comprised of leading economists from several 
of Canada’s major financial and private research 
institutions.
Te most recent meeting between the Minister 
and the Council was on December 8, 2025, 
with EFC members presenting their estimates 
for economic performance in 2025 and their 
forecasts for 2026 through 2030 and over the 
long-term. Topics of discussion included: U.S. 
tariffs and the evolving trade situation; business 
investment; major projects; federal immigration 
policy; demographics and B.C.’s labour and 
housing markets.
EFC members were invited to revise their 
forecasts following the meeting up until 
January 6, 2026 (11 of the 13 members chose 
to resubmit). Forecast details from the Council’s 
surveys are summarized in the table at the end 
of this topic box.
British Columbia Outlook
On average, the Council estimates that B.C.’s 
economy grew by 1.5 per cent in 2025, down 
0.3 percentage points from their February 2025 
projection. Te EFC forecasts B.C. real 
GDP growth of 1.5 per cent in 2026, down 
0.4 percentage points compared to their 
previous forecast. EFC expectations for slower 
near-term growth partly reflect the impact 
of U.S. tariffs and weaker global demand. 
In addition, the Council anticipates that lower 
population growth due to changes in federal 
immigration policy will temper labour and 
housing market activity in B.C. and nationally 
in the near-term.
1.8
1.9
2.0
2.1
2.0
na
2.0
1.5
1.5
1.9
1.9
2.0
1.9
1.9
0.0
0.5
1.0
1.5
2.0
2.5
2025
2026
2027
2028
2029
2030
Long-term
February 2025 survey*
January 2026 survey
B.C. Real GDP 
Annual per cent change
Source:  Average of Economic Forecast Council forecasts.
*Forecasts for 2030 were not part of the February 2025 survey. 
Chart 1 – EF C Outlook for B . C.
1.5
1.5
1.9
1.9
2.0
1.9
1.9
1.6
1.3
1.9
1.8
1.8
1.8
1.8
0.0
0.5
1.0
1.5
2.0
2.5
2025
2026
2027
2028
2029
2030
Long-term
B.C.
Canada
Real GDP 
Annual per cent change
Source: Average of Economic Forecast Council forecasts.
Chart 2 – EF C Outlook for B . C.  and Canada

--- page 128 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
118 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Te Council noted B.C.’s robust retail sales 
activity in the first half of 2025, supported by 
accelerated consumer spending ahead of U.S. 
tariffs and lower interest rates. Members expect 
B.C. retail sales growth to moderate in the 
near-term amid weaker demand due to lower 
immigration and modest employment growth.
Several members acknowledged the complexity 
of B.C.’s housing market. Te EFC generally 
expects less upward price pressure amid lower 
housing demand to improve affordability in 
the near-term. Council members indicated 
that weak pre-sales activity and uncertainty 
around the impact of U.S. tariffs on the broader 
economy have cooled residential investment.
Te Council said that the housing sector is 
further constrained by a shortage of skilled 
workers and low productivity. EFC members 
highlighted the risks around slowing 
construction, especially purpose-built rental 
units. Tey also considered options to encourage 
new residential investment to support rental 
unit construction, as well as opportunities to 
boost training and improve productivity in the 
construction sector.
Te EFC discussed the importance of attracting 
new private sector investment with some large 
projects now moving into operation. Te 
Council concluded that grid capacity is key to 
promoting investor confidence. Some members 
acknowledged the province’s Look West strategy 
and discussed options to fast track projects as 
well as the need for competitive regulatory and 
tax frameworks.
British Columbia Economic Forecast Council:  
Summary of B.C. real GDP forecasts, annual per cent change
Participant
Organization
2025
2026
2027
2028
2029
2030
Long-term
Robert Kavcic …................ Bank of Montreal1 ……………………
2.0
1.7
2.4
2.0
2.0
2.0
2.0
Brendon Ogmundson ….... BC Real Estate Association1 ………
1.3
1.5
2.3
2.4
2.4
2.4
2.4
David Williams ……………  Business Council of BC1 ……………
1.6
1.3
1.8
2.0
2.1
2.1
2.1
Bryan Yu ……………………Central 1 Credit Union1 ……………
1.3
1.4
1.9
2.3
2.5
2.0
na
Avery Shenfeld …………… CIBC1 …………………………………
1.4
1.3
2.0
na
na
na
na
Pedro Antunes …..............  Conference Board of Canada1 ……
1.2
1.7
2.1
2.0
2.0
2.0
1.8
Jimmy Jean …................... Desjardins Group1 .…………………
1.8
1.3
2.0
na
na
na
na
Sébastien Lavoie ………… Laurentian Bank Securities …………
1.3
1.5
1.7
1.6
1.6
1.6
1.6
Stéfane Marion …………… National Bank1 ………………………
1.7
1.2
2.0
2.0
2.0
2.0
2.0
Cynthia Leach …...............  RBC1 …………………………………
1.0
1.2
1.3
1.6
1.7
1.8
1.8
Jean-François Perrault …… Scotiabank ……………………………
1.4
1.6
1.9
na
na
na
na
Aaron Stokes ………………Stokes Economics1 …………………
2.0
1.8
2.1
1.3
1.4
1.4
na
Derek Burleton …………… TD1 ……………………………………
1.8
1.5
1.7
1.9
1.8
1.8
1.8
Average ………………………………………………………………
1.5
1.5
1.9
1.9
2.0
1.9
1.9
Standard Deviation …………………………………………………
0.3
0.2
0.3
0.3
0.3
0.3
0.2
1 Updated survey submitted subsequent to the December 8, 2025 meeting.
Te Council expects that uncertainty around 
the U.S. tariff situation and global trade policy 
will continue to constrain business investment. 
However, members agreed that B.C. was less 
exposed to trade risks compared to other 
provinces due to B.C.’s diversified trading 
network and broad export base. Some members 
also highlighted B.C.’s large services sector and 
well-established professional, scientific and 
technical industries as a potential advantage to 
partly offset global economic risks during times 
of high uncertainty around trade policy.
Te EFC discussed B.C.’s abundant natural 
resources and the potential boost from LNG 
exports to Asian markets and future mining and 
LNG projects. Council members said that U.S. 
tariffs and restrictive trade policy have added 
to ongoing challenges in the forestry sector, 
which have significant implications for rural 
communities.
Te Council discussed changes to federal 
immigration policy. EFC members expect lower 
immigration targets to have a larger impact 
on B.C. and Ontario due to their higher share 
of non-permanent residents. Te EFC noted 
that lower population growth may have mixed 
effects on B.C.’s economy. While the Council 
generally expects muted job growth to reduce 
domestic demand in the near-term, members 
said that lower population growth may also ease 
some pressure on demand for public services, 
infrastructure and housing.

--- page 129 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 119
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
Te EFC highlighted B.C.’s significant potential 
for future major projects and encouraged the 
province to seek opportunities to leverage 
federally endorsed projects. Members agreed 
that any economic boost from major projects 
would take several years to materialize.
Canadian Outlook
After an estimated gain of 1.6 per cent in 2025, 
the Council expects Canadian real GDP growth 
to slow to 1.3 per cent in 2026. Te EFC 
expects Canadian economic activity to improve 
to 1.9 per cent growth in 2027, followed by 
steady annual real GDP growth of 1.8 per cent 
in 2028 and over the long-term.
Te EFC discussed the U.S. tariff situation 
and potential outcomes of the imminent 
Canada-United States-Mexico Agreement
(CUSMA) review. Te Council agreed that 
current CUSMA exemptions have provided 
some shelter from the negative impacts of U.S. 
tariffs. However, members explained that the 
high degree of uncertainty around potential 
outcomes of the CUSMA review continues to 
weigh on business investment.
Council members said that lower population 
growth due to reduced federal immigration 
targets is weighing on Canadian labour 
market activity. Some members explained 
that businesses may scale down investment 
and hiring during a period of low population 
growth in the near-term. Meanwhile, decreased 
domestic demand has helped to cool inflation, 
prompting the Bank of Canada to lower 
interest rates somewhat. Looking ahead, most 
EFC members expect the Bank of Canada to 
gradually raise interest rates by 2027 as the 
Canadian economy improves.
Te Council also discussed the federal 
government’s new capital budgeting framework, 
potential provincial implications from federal 
spending reductions and the importance of 
establishing targets for fiscal sustainability.
International Outlook
Te Council estimates that the U.S. economy 
grew by 2.0 per cent in 2025. Te EFC expects 
U.S. real GDP to grow by 2.0 per cent in 2026 
and 2027, followed by annual average real GDP 
growth of about 1.9 per cent in 2028 and over 
the long-term.
EFC members remarked on the resiliency of 
the U.S. economy in 2025. However, some 
members cautioned that the recent boost 
from investment in data centres and artificial 
intelligence may be masking underlying 
weakness in other areas of the U.S. economy. 
Te Council also highlighted the elevated 
degree of uncertainty around the economic 
outlook given the volatile tariff situation and 
upcoming CUSMA review.
Te EFC recommended pursuing further 
opportunities to broaden B.C.’s and Canada’s 
global partnerships given the uncertain 
U.S. trade environment. Some members 
also indicated that there was potential for 
improvement in China’s economic outlook, 
with subsequent upside impacts on global 
demand and key commodity prices.
Canadian Dollar
Te Council’s projections for the Canadian 
dollar ranged from 71.0 US cents to 
75.8 US cents in 2026 and from 71.0 US cents 
to 76.5 US cents in 2027. Over the medium 
and longer-term, EFC forecasts ranged 
from a low of 72.5 US cents to a high of 
80.0 US cents (see Chart 3).
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.





/onJterm
EFC loZ
EFC aYeraJe
EFC KiJK
Source: Economic Forecast Council forecasts.
8S centsC
Chart 3  – EF C Outlook for the Canadian D ollar

--- page 130 ---
BRITISH COLUMBIA ECONOMIC REVIEW AND OUTLOOK
120 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
)RrecaVt 6urYe\ ± PartLcLpantV¶ 2pLnLRnV
All figures are based
on annual averages
Range
Average 1
Range
Average 1
Range
Average 1
Range
Average 1
Range
Average 1
Range
Average 1
Range
Average 1
BrLtLVh CRluPELa
Real GDP (% change) ……………………
1.0 – 2.0
1.5 (13)
1.2 – 1.8
1.5 (13)
1.3 – 2.4
1.9 (13)
1.3 – 2.4
1.9 (10)
1.4 – 2.5
2.0 (10)
1.4 – 2.4
1.9 (10)
1.6 – 2.4
1.9 (8)
Nominal GDP (% change) …………………
3.3 – 4.6
4.1 (13)
3.2 – 5.1
3.8 (13)
3.4 – 4.6
4.1 (13)
3.6 – 4.5
4.0 (10)
3.5 – 5.0
4.1 (10)
3.6 – 4.4
3.9 (10)
3.6 – 4.4
3.9 (8)
GDP Deflator (% change) …………………
2.0 – 3.0
2.6 (13)
1.6 – 3.4
2.3 (13)
1.3 – 2.9
2.1 (13)
1.6 – 2.6
2.1 (10)
1.5 – 2.5
2.1 (10)
1.5 – 2.3
2.0 (10)
1.7 – 2.3
2.0 (8)
Real business non-residential
   investment (% change) ........................
-3.0 – 4.9
0.4 (4)
-1.5 – 2.5
0.9 (4)
3.0 – 14.4
6.0 (4)
-3.6 – 4.0
1.5 (4)
-1.9 – 5.0
2.1 (4)
-4.5 – 3.1
1.0 (4)
1.5 – 2.5
2.0 (2)
Real business machinery and 
   equipment investment (% change) ……
-5.0 – 2.0
-2.4 (4)
1.0 – 3.0
2.1 (4)
2.0 – 11.2
5.4 (4)
2.5 – 8.3
4.4 (4)
2.1 – 6.0
3.5 (4)
0.9 – 3.6
2.2 (4)
2.3 – 2.5
2.4 (2)
Household Income (% change) …………
3.0 – 4.7
4.0 (8)
3.1 – 3.9
3.5 (8)
3.4 – 4.5
3.9 (8)
3.5 – 4.3
3.9 (8)
3.5 – 4.5
4.0 (8)
3.5 – 4.2
4.0 (8)
3.5 – 4.2
3.9 (6)
Net Migration (thousand
   persons) …………………………………
-14.5 – 40.0
15.3 (8)
-27.6 – 40.0
-0.6 (8)
-7.1 – 65.0
18.9 (8)
30.0 – 72.4
51.5 (8)
40.0 – 74.0
61.9 (8)
40.0 – 83.0
65.1 (8)
40.0 – 86.3
71.6 (6)
Employment (% change) …………………
1.0 – 1.3
1.2 (12)
-0.1 – 1.4
0.7 (12)
0.1 – 1.8
1.0 (12)
0.9 – 1.8
1.3 (9)
0.7 – 1.8
1.3 (9)
0.7 – 1.8
1.3 (9)
0.7 – 1.8
1.2 (7)
Unemployment rate (%) …………………
6.1 – 6.5
6.2 (13)
5.7 – 6.6
6.1 (13)
5.1 – 6.4
5.8 (13)
5.0 – 6.1
5.5 (9)
5.0 – 5.8
5.3 (9)
4.9 – 5.5
5.3 (9)
5.1 – 5.5
5.3 (7)
Net operating surplus 
   of corporations (% change) ……………
3.0 – 13.4
6.1 (4)
3.0 – 18.0
9.8 (4)
2.5 – 7.1
5.0 (4)
1.1 – 6.0
3.3 (4)
1.6 – 5.0
3.2 (4)
-0.3 – 5.0
2.3 (4)
1.7 – 4.0
2.9 (2)
Housing starts (thousand
   units) ………………………………………
41.0 – 48.0
43.7 (13)
29.0 – 49.0
40.1 (13)
34.0 – 55.0
41.2 (13)
35.8 – 45.0
41.5 (10)
35.0 – 45.0
42.1 (10)
34.0 – 45.0
41.5 (10)
38.8 – 45.0
42.6 (8)
MLS residential unit 
   sales (thousand units) …………………
70.0 – 72.3
71.0 (7)
72.0 – 82.5
77.9 (7)
77.8 – 91.7
83.6 (7)
81.0 – 96.4
87.5 (6)
79.0 – 97.8
89.3 (6)
77.0 – 98.9
90.2 (6)
76.0 – 102.0
88.3 (4)
MLS residential average 
   sale price ($ thousand) …………………
950 – 960
956 (7)
929 – 996
973 (7)
957 – 1,075
1,007 (7)
993 – 1,120
1,054 (6)
1,024 – 1,160
1,088 (6)
1,056 – 1,200
1,124 (6)
1,093 – 1,200
1,164 (3)
Retail sales (% change) …………………
5.3 – 6.5
6.2 (6)
2.0 – 5.0
2.8 (6)
1.5 – 5.3
3.1 (6)
3.0 – 4.4
3.7 (6)
3.5 – 4.5
3.9 (6)
3.3 – 4.1
3.8 (6)
3.3 – 4.0
3.7 (4)
Consumer price index (% change) ………
2.1 – 2.2
2.2 (12)
1.7 – 2.4
2.0 (12)
1.7 – 2.3
2.0 (12)
1.9 – 2.1
2.0 (9)
1.9 – 2.1
2.0 (9)
1.9 – 2.0
2.0 (9)
1.9 – 2.0
2.0 (7)
8nLteG 6tateV
Real GDP (% change) ……………………
1.8 – 2.2
2.0 (13)
1.6 – 2.4
2.0 (13)
1.7 – 2.2
2.0 (13)
1.8 – 2.2
1.9 (10)
1.8 – 2.2
2.0 (10)
1.8 – 2.2
1.9 (10)
1.8 – 2.1
1.9 (7)
Intended Federal Funds
   rate (%) ……………………………………
3.75 – 4.37
4.21 (12)
3.00 – 3.50
3.33 (12)
3.00 – 3.50
3.15 (12)
2.80 – 3.50
3.10 (9)
2.80 – 3.50
3.13 (9)
2.80 – 3.50
3.13 (9)
3.00 – 3.50
3.14 (6)
Housing starts (million units) ……………
1.34 – 1.41
1.36 (11)
1.30 – 1.46
1.38 (11)
1.31 – 1.49
1.42 (11)
1.30 – 1.59
1.45 (7)
1.30 – 1.63
1.47 (7)
1.20 – 1.63
1.47 (7)
1.20 – 1.60
1.45 (5)
CanaGa
Real GDP (% change) ……………………
1.2 – 1.7
1.6 (13)
1.2 – 1.5
1.3 (13)
1.5 – 2.3
1.9 (13)
1.5 – 2.2
1.8 (11)
1.5 – 2.2
1.8 (11)
1.5 – 2.2
1.8 (11)
1.5 – 2.0
1.8 (8)
Bank of Canada overnight
   target rate (%) ……………………………
2.25 – 2.93
2.63 (13)
2.21 – 2.75
2.33 (13)
2.25 – 2.88
2.53 (13)
2.25 – 3.00
2.66 (11)
2.25 – 3.00
2.69 (11)
2.25 – 3.00
2.72 (11)
2.25 – 3.00
2.69 (8)
Exchange rate (US cents/C$) ……………
71.0 – 72.0
71.7 (13)
71.0 – 75.8
73.4 (12)
71.0 – 76.5
75.0 (12)
72.5 – 79.0
75.8 (9)
72.5 – 80.0
76.0 (9)
72.5 – 80.0
76.3 (9)
72.5 – 80.0
75.8 (6)
Housing starts (thousand units) …………
234 – 270
257 (13)
170 – 271
238 (13)
190 – 300
237 (13)
200 – 285
237 (11)
210 – 288
241 (11)
215 – 291
241 (11)
219 – 260
235 (8)
Consumer price index (% change) ………
1.9 – 2.2
2.1 (13)
1.7 – 2.5
2.1 (13)
1.8 – 2.2
2.0 (13)
2.0 – 2.1
2.0 (11)
2.0 – 2.0
2.0 (11)
2.0 – 2.0
2.0 (11)
2.0 – 2.0
2.0 (8)
1 Based on responses from participants providing forecasts. Number of respondents shown in parentheses.
2030
Long-term
2025
2026
2028
2027
2029

--- page 131 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 121
PART 4
|
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
(11,187)
684 
772 
(141)
(146)
127 
(266)
100 
229 
214 
(9,614)
Higher
personal
income tax
revenue
Higher
corporate
income tax
revenue
Lower
other
taxation
revenue
Federal
government
transfers
Other
revenue
changes
Costs of
climate-
related
events
Additional
expenditure
management
savings
Refundable
tax
credits
Other
expense
changes
$ millions
Decrease in deficit of $1.6 billion 
6eFRQd
4uDUteUO\
5eSRUt
7KLUd
4uDUteUO\
5eSRUt
Chart 4 . 1
20 25 / 26  D eficit – Maj or Changes from the 2025/26 Second Quarterly Report
7aEle 4.1   202526 )RrecaVt 8pGate
 millions
%udget

)irst
4uarterly
5eport
6econd 
4uarterly
5eport
Third
4uarterly
5eport
5eYenue ««««««««««««««««««««««««««

    

    

      

      
E[Sense «««««.....«....««««««..«««««««««««

  

  

   

   
DeILcLt .......................«««««««««««««««««««««« (10912)
  
(11577)
  
(11187)
   
(9614)
     
CapLtal 6penGLng
7a[SayersuSSorteG caSital sSenGinJ «««««««««««««..

    

    

      

      
SelfsuSSorteG caSital sSenGinJ ««««««««««««««««

     

     

       

       
20202
   
19482
   
18705
     
17073
     
PrRYLncLal DeEt
7a[SayersuSSorteG GeEt ««««««««««««««««««« 
  

  

    

    
SelfsuSSorteG GeEt «««««««««««««««««««««« 
   

   

     

     
7Rtal GeEt «««««««««««««««««««««««««
156632
 
155373
 
155086
   
154059
   
7a[pa\erVuppRrteG GeEt PetrLcV
'eEtto*'3 ratio ««««««««««««««««««««««
.
.
.
.
,nterest Eite cents Ser Gollar of reYenue ««««««««««««
.
          
.
          
.
            
.
            
Introduction
Te third-quarter fiscal outlook for 2025/26 forecasts a deficit of $9.6 billion, which is 
$1.6 billion lower than the forecast in the Second Quarterly Report mainly due to higher 
revenue from corporate and personal income tax and lower spending for refundable tax 
credits, partially offset by higher statutory spending for wildfires and flooding events in 
prior years. Taxpayer-supported capital spending for the year is lower by $1.4 billion, 
and the forecast for the taxpayer-supported debt is lower by $1.1 billion, from the 
second-quarter outlook mainly due to improved operating results, lower capital spending 
and changes in other working capital balances.

--- page 132 ---
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
122 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table 42   202526 Financial Forecast CKanges
202526 deficit at %udget   (MarcK 4, 2025) ...........................................................................................
(10,912)
 
 
(10,912)
 
202526 deficit at tKe )irst Quarterly Report  (September 15, 2025) ..........................................................
(11,577)
 
202526 deficit at tKe Second Quarterly Report (1ovember 27, 2025) ………………………………………
-
             
(11,187)
 
41 
8pdate
42 
8pdate
43 
8pdate
Total
CKanges
5evenue1 cKanges:
Personal income tax – reflecting stronger 2024 tax assessments partly offset by weaker
household income growth and inclusion of federal and provincial tax measures …...............................
(65)
         
816
        
684
        
1,435
     
Corporate income tax – increase in advance installments resulting from federal government
updates to corporate tax base as well as higher prior-year settlement payment, mainly reflecting 
2024 tax assessment information, partly offset by the impacts of federal tax measures….....................
411
        
565
        
772
        
1,748
     
Provincial sales tax – mainly weaker year-to-date collections ...................................................................
(174)
       
(100)
       
-
             
(274)
       
Property transfer tax – reflecting lower than expected year-to-date sales results…...................................
(247)
       
(150)
       
(100)
       
(497)
       
Carbon tax – mainly the elimination of consumer carbon tax effective April 1, 2025 ….............................
(2,821)
    
-
             
37
          
(2,784)
    
Fuel tax – higher sales volume in most fuel types reflecting prior year and year-to-date results…............
64
          
-
             
-
             
64
          
Employer health tax – reflecting impacts of 2024/25 results and a lower wages and salaries growth…....
(29)
         
(18)
         
(25)
         
(72)
         
Other taxation sources – lower tobacco tax revenue, mainly reflecting lower year-to-date collections
and 2024/25 results, partially offset by higher property and insurance premium tax revenue….............
19
          
(61)
         
(53)
         
(95)
         
Natural gas royalties – changes in prices and volumes, lower natural gas liquids royalties,
partially offset by changes in utilization of royalty and infrastructure programs and credits ...................
(60)
         
(6)
           
88
          
22
          
Mining – changes in coal prices, higher mining costs as well as lower coal production  ….......................
(145)
       
(121)
       
(36)
         
(302)
       
Electricity sales under the Columbia River Treaty – changes in Mid-C electricity prices ….......................
17
          
(34)
         
(23)
         
(40)
         
Forests – mainly lower stumpage rates, rising costs and changes to Crown harvest volumes ….............
(68)
         
(43)
         
(23)
         
(134)
       
Other natural resources – mainly changes to bonus bids cash sales and petroleum royalties,
partly offset by lower water rentals revenue  ..........................................................................................
31
          
(20)
         
1
            
12
          
Fees, licences, investment earnings and miscellaneous revenue:
Investment earnings – mainly lower interest recoveries related to the Fiscal Agency Loan program
partly offset by improved earnings from taxpayer-supported entities ….................................................
(7)
           
(51)
         
66
          
8
            
Tobacco settlement - estimated net revenue …......................................................................................
2,725
     
-
             
-
             
2,725
     
Other sources – mainly changes in revenue from fees and other miscellaneous sources ….................
(13)
         
(2)
           
41
          
26
          
Canada health and social transfers – changes in B.C. share of the national population ...........................
9
            
(98)
         
-
             
(89)
         
Other federal government transfers – mainly delayed funding in support of Disaster Financial 
Assistance Arrangements and delayed recoveries relating to public transit...........................................
(366)
       
(66)
         
(146)
       
(578)
       
Commercial Crown corporation net income - mainly Liquor Distribution Branch …...................................
(20)
         
(99)
         
23
          
(96)
        
Total revenue cKanges …………………………………..........................................................................
(739)
      
512
        
1,306
     
1,079
    
/ess : expense1 increases (decreases):
Consolidated Revenue Fund changes:
Additional expenditure management savings ….....................................................................................
-
             
-
             
(100)
       
(100)
       
Statutory spending:
Fire management costs ....................................................................................................................
613
        
(126)
       
(60)
         
427
        
Emergency Disaster & Management Account (EDMA) ....................................................................
-
             
-
             
326
        
326
        
Insurance Risk Management Account  .............................................................................................
-
             
36
          
-
             
36
          
Other statutory spending ..................................................................................................................
19
          
17
          
-
             
36
          
Refundable tax credits - elimination of the climate action tax credit and tax assessment updates...
(740)
       
181
        
(229)
       
(788)
       
Other expense changes – mainly higher interest costs ..........................................................................
141
        
(1)
           
(45)
         
95
          
Spending funded by third party recoveries ….............................................................................................
(80)
         
(98)
         
(5)
           
(183)
       
Changes in spending profile of service delivery agencies:
School districts .......................................................................................................................................
46
          
(8)
           
124
        
162
        
Universities .............................................................................................................................................
(144)
       
83
          
(71)
         
(132)
       
Colleges and institutes............................................................................................................................
(18)
         
25
          
(3)
           
4
            
Health authorities and hospital societies ................................................................................................
139
        
(135)
       
92
          
96
          
Other service delivery agencies2 ............................................................................................................
(3)
           
87
          
(110)
       
(26)
         
(Increase) decrease in operating transfers to service delivery agencies - accounting elimination …………
(47)
         
61
          
(186)
       
(172)
      
Total expense cKanges ………………………………………………………………………………...………
(74)
         
122
        
(267)
       
(219)
      
Total cKanges …….............................................................................……………………………………………
(665)
      
390
        
1,573
     
1,298
    
202526 deficit at tKe )irst Quarterly Report ……………………………………………………………………… (11,577)
 
202526 deficit at tKe Second Quarterly Report …………………………………………………………………
(11,187)
 
202526 deficit at tKe 7hird Quarterly Report ……………………………………………………………………
(9,614)
    
(9,614)
   
1
2
($ millions)
Detailed descriptions of changes are provided in the revenue and expense sections of this report.
Includes BC Transportation Financing Authority, BC Transit, BC Housing Management Commission, Community Living BC, and other entities.

--- page 133 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 123
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
Revenue
Total government revenue is now forecast to be $1.306 billion higher than the 
Second Quarterly Report. Major changes include:
• $772 million higher corporate income tax revenues due to increased settlement 
payments related to prior years mainly reflecting stronger 2024 corporate tax 
assessments information and higher corporate income tax advance payments from 
the federal government;
• $684 million increase in personal income tax, mainly reflecting stronger 2024 personal 
tax assessments results, partly offset by weaker household income;
• $141 million decrease in other taxation revenue sources mainly reflecting year-to-date 
information;
• $7 million increase in natural resource revenue mainly due to the effects of higher 
natural gas prices as well as improvement in forest Crown harvest volumes, partly 
offset by revenue from remaining sources;
• $107 million increase in revenue from fees, licences, investment earnings and 
miscellaneous sources mainly due to improvements in taxpayer-supported entities 
projections;
• $146 million decrease in federal government contributions mainly due to lower 
transfers under the Disaster Financial Assistance Arrangements and to taxpayer-
supported entities; and
• $23 million net increase in commercial Crown corporations’ net income, due to 
updated outlooks from the Liquor Distribution Branch and BC Lottery Corporation.
Expense
Total government spending is now forecast to be $267 million lower than the 
Second Quarterly Report. Major changes include:
• $229 million decrease in refundable tax credits mainly reflecting tax assessment 
updates;
• $100 million in additional savings through the management of administrative and 
discretionary spending;
• $153 million decrease in net spending by service delivery agencies;
• $60 million decrease in fire management costs - for a total spending forecast of 
$665 million;
• $51 million decrease in various other spending; offset by
• $326 million increase in statutory spending under the Emergency and Disaster 
Management Act mainly for wildfires and flooding events in prior years.
Table 4.2 provides a detailed breakdown of changes in the operating results by quarter 
from Budget 2025.

--- page 134 ---
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
124 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Contingencies
Budget 2025 includes a Contingencies Vote of $4.0 billion in 2025/26. Te Contingencies 
Vote helps fund unexpected costs that are difficult to forecast such as flood recovery, 
wage mandate, increased costs for government services, and emerging priorities. 
Te forecast continues to assume allocations will be fully spent and remains unchanged.
Government will report the final spending details of the Contingencies Vote in the 
2025/26 Public Accounts which will be released in the summer of 2026.
Government Employment (FTEs)
Full-time equivalent (FTE) staff utilization in core government ministries for 2025/26 
is forecast to be 37,500, a decrease of 700 FTEs from the Second Quarterly Report. 
Tis change reflects the estimated impact of hiring restrictions and job action.
Further details on FTEs are provided in Table A13 in the appendix.

--- page 135 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 125
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
Provincial Capital Spending
Total capital spending is projected at $17.1 billion for fiscal 2025/26, which is 
$1.6 billion lower than the Second Quarterly Report forecast (see Table 4.3).
Te forecast for taxpayer-supported capital spending is $1.4 billion lower than in the 
Second Quarterly Report mainly due to changes in the timing of project spending in the 
health, transportation, and post-secondary sectors.
Self-supported capital spending is expected to be $198 million lower than the forecast in 
the Second Quarterly Report, primarily due to changes in the timing of BC Hydro capital 
expenditures.
7aEle 4.3   202526 CapLtal 6penGLng 8pGate
41 
8pGate
42
8pGate
43
8pGate
7Rtal 
ChangeV
7a[pa\erVuppRrteG capLtal VpenGLng at Budget 202 «««««««««««««««
15374
    
15374
    
7a[pa\erVuppRrteG capLtal VpenGLng at the )LUVt 4uDUteUO\ 5eSRUt «««««««««
14664
    
7a[pa\erVuppRrteG capLtal VpenGLng at the 6eFRQd 4uDUteUO\ 5eSRUt«««««««« 
 
13901
    
ScKool Gistricts «.............................................................................................................

            

           

         

         
3ostseconGary institutions ««««««««««««««««««««««««««

           

           

         

         
+ealtK sector «................................................................................................................

         

         

         

      
7ransSortation sector ««««««««««««««««.............................................

         

         

         

      
Social KousinJ «..............................................................................................................

           

            

         

         
2tKer net aGMustments to caSital scKeGules «««««««««««««««««.......

              

              

        

        
7otal ta[SayersuSSorteG cKanJes««««««««««««««««««««««««

        

         

     

     
7a[pa\erVuppRrteG capLtal VpenGLng  upGateG IRrecaVt ««««««««««««««
14664
    
13901
    
12467
    
12467
    
6elIVuppRrteG capLtal VpenGLng at Budget 202 «««««««««««««««««
4828
      
       4828 
6elIVuppRrteG capLtal VpenGLng at the )LUVt 4uDUteUO\ 5eSRUt «««««««««««
4818
      
6elIVuppRrteG capLtal VpenGLng at the 6eFRQd 4uDUteUO\ 5eSRUt «««««««««« 
 
4804
      
BC +yGro ««««««««««««««.««««««................................................

              

              

         

         
,nsurance CorSoration of BC ««««««««««««««.««««««..................

             

             

             

           
2tKer net aGMustments«...................................................................................................

             

          

             

          
7otal selfsuSSorteG cKanJes««««««««««««..««««««««««««««

           

           

        

        
6elIVuppRrteG capLtal VpenGLng  upGateG IRrecaVt ««««««««««««««««
4818
      
4804
      
4606
      
4606
      
202526 capLtal VpenGLng at the )LUVt 4uDUteUO\ 5eSRUt «««««««««««««««
19482
    
202526 capLtal VpenGLng at the 6eFRQd 4uDUteUO\ 5eSRUt««««««««««««««
18705
    
202526 capLtal VpenGLng at the 7KLUd 4uDUteUO\ 5eSRUt  ««««««««««««««  
 
17073
    
17073
    
 millions

--- page 136 ---
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
126 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Provincial Debt
Te provincial debt is projected to total $154.1 billion by the end of the fiscal year, 
which is $2.6 billion lower than the projection at Budget 2025 and $1.0 billion lower 
than the Second Quarterly Report.
Taxpayer-supported debt is now forecast to be $116.5 billion, which is $2.2 billion 
lower than Budget 2025 mainly due to net changes to operating results and lower capital 
spending, offset by a higher opening balance from 2024/25. Te forecast is $1.2 billion 
lower than the Second Quarterly Report mainly due to improved operating results, lower 
capital spending and changes in other working capital balances.
Consistent with the Second Quarterly Report, the self-supported debt is projected to be 
$37.5 billion — $394 million lower than Budget 2025 mainly due to a lower opening 
balance from 2024/25.
Details on changes in provincial debt by quarter are shown in Table 4.4.
7aEle 4.4   202526 PrRYLncLal DeEt 8pGate 1
41 
8pGate
42
8pGate
43
8pGate
7Rtal 
ChangeV
7a[pa\erVuppRrteG GeEt IRrecaVt at Budget 202 ……………………………
118719
    
118719
   
7a[pa\erVuppRrteG GeEt at the )LUVt 4uDUteUO\ 5eSRUt …………………….
117992
   
7a[pa\erVuppRrteG GeEt at the 6eFRQd 4uDUteUO\ 5eSRUt …………………
117677
   
Changes:
Higher debt level from 2024/25 ..................................................................
1,378
         
-
                
-
                
1,378
        
Changes in operating results ......................................................................
665
            
(390)
          
(1,573)
       
(1,298)
       
Non-cash items ……………………………………………………………………
66
              
(8)
              
36
             
94
             
Changes in cash balances 2 …...................................................................
(1,667)
        
104
           
665
           
(898)
          
Changes in commercial Crown corporations' retained earnings…..............
(4)
               
78
             
25
             
99
             
Changes in other working capital balances 3 .............................................
569
            
657
           
1,069
        
2,295
        
Changes in taxpayer-supported capital spending ......................................
(710)
           
(763)
          
(1,434)
       
(2,907)
       
Change in debt level for social housing projects ........................................
(1,024)
        
7
               
75
             
(942)
         
Total taxpayer-supported changes …………………………………………….…
(727)
           
(315)
          
(1,137)
       
(2,179)
      
7a[pa\erVuppRrteG GeEt  upGateG IRrecaVt …………………………………
117992
    
117677
   
116540
   
116540
   
6elIVuppRrteG GeEt IRrecaVt at Budget 202 …………………………………
37913
      
37913
     
6elIVuppRrteG GeEt at the )LUVt 4uDUteUO\ 5eSRUt ……………………………
37381
     
6elIVuppRrteG GeEt at the 6eFRQd 4uDUteUO\ 5eSRUt ………………………  
37409
     
Changes:
Lower debt level from 2024/25 ...................................................................
(517)
           
-
                
-
                
(517)
          
Changes in capital spending ……………………………………………………
(10)
             
(14)
            
(198)
          
(222)
          
Changes in internal financing ……………………………………………………
(5)
               
42
             
308
           
345
          
Total self-supported changes …………………………………...…………………
(532)
           
28
             
110
           
(394)
         
6elIVuppRrteG GeEt  upGateG IRrecaVt …………………………………………
37381
      
37409
     
37519
     
37519
     
Forecast allowance
202526 prRYLncLal GeEt at the )LUVt 4uDUteUO\ 5eSRUt  .................................
155373
    
202526 prRYLncLal GeEt at the 6eFRQd 4uDUteUO\ 5eSRUt  ............................
155086
   
202526 prRYLncLal GeEt at the 7KLUd 4uDUteUO\ 5eSRUt  ………………………
154059
   
154059
   
1
2
3
($ millions)
Provincial debt is prepared in accordance with Generally Accepted Accounting Principles and presented consistent with the Debt Summary Report included in 
the Public Accounts . Debt is shown net of sinking funds and unamortized discounts, excludes accrued interest and foreign exchange adjustments, and includes 
non-guaranteed debt directly incurred by commercial Crown corporations and debt guaranteed by the Province.
Reflects changes in cash balances at April 1, 2025 and includes all cash balances from the Consolidated Revenue Fund, School Districts, Universities, 
Colleges, Health Authorities, Hospital Societies and other taxpayer-supported agencies.
Changes in other working capital balances include changes in accounts receivables, accounts payable, accrued liabilities, deferred revenue, investments, 
restricted assets and other assets.

--- page 137 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 127
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
Risks to the Fiscal Forecast
Te forecasts of revenues, expenditures, capital spending and debt are estimates based on 
multiple economic, financial and external factors. In addition, capital spending and debt 
figures may be influenced by several factors including design development, procurement 
activity, weather, geotechnical conditions and interest rates. As a result, the actual 
operating results, capital expenditure and debt figures may differ from the current 
forecast.
Revenues can be volatile due in part to the influence of the cyclical nature of the natural 
resource sector in the economy. Changes in energy or commodity prices, such as natural 
gas and lumber, may have a significant effect on revenue and the fiscal forecast.
Te spending forecast in the fiscal plan is based on ministry and service delivery 
agency plans and strategies. Te main risks are changes to planning assumptions, such 
as utilization or demand rates for government services in the health care, education, 
or community social services sectors, and costs associated with natural disaster responses.
Supplementary Schedules
Te following tables provide the financial results for the nine months ended 
December 31, 2025, and the 2025/26 full-year forecast.
Table 4.5  2025/26 Operating Statement
Actual
Actual 
($ millions)
Budget
Actual
Variance
2024/25
Budget
Forecast
Variance
2024/25
Revenue …………………………………………………
60,787
    
62,665
    
1,878
      
59,862
    
84,003
    
85,082
    
1,079
      
84,046
    
Expense …………….....…....………………..…………
(70,011)
   
(66,416)
   
3,595
      
(64,864)
   
(94,915)
   
(94,696)
   
219
         
(91,393)
  
Surplus (deficit) …………………………………………
(9,224)
     
(3,751)
     
5,473
      
(5,002)
     
(10,912)
   
(9,614)
     
1,298
      
(7,347)
     
Accumulated surplus (deficit) beginning of the year
before remeasurement gains (losses)...................
(10,348)
   
(8,560)
     
1,788
      
(1,213)
     
(10,348)
   
(8,560)
     
1,788
      
(1,213)
    
Accumulated surplus (deficit) before
remeasurement gains (losses)……………………… (19,572)
   
(12,311)
   
7,261
      
(6,215)
     
(21,260)
   
(18,174)
   
3,086
      
(8,560)
     
Effect of remeasurement gains (losses) ………………
(408)
        
(770)
        
(362)
        
(1,257)
     
(408)
        
(707)
        
(299)
        
(1,450)
    
Accumulated surplus (deficit) end of period ………
(19,980)
   
(13,081)
   
6,899
      
(7,472)
     
(21,668)
   
(18,881)
   
2,787
      
(10,010)
  
Year-to-Date to December 31
Full Year
2025/26
2025/26

--- page 138 ---
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
128 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table 4.6  2025/26 Expense by Ministry, Program and Agency
Actual
Actual
($ millions)
Budget 1
Actual 1
Variance
2024/25 1
Budget 1
Forecast
Variance
2024/25 1
Office of the Premier ………………………………………
13
          
12
          
(1)
           
12
          
18
           
18
          
-
             
15
          
Agriculture and Food ………………………………………
123
        
110
        
(13)
         
233
        
152
         
152
        
-
             
346
        
Attorney General ..........................................................
651
        
787
        
136
        
669
        
874
         
874
        
-
             
888
        
Children and Family Development ………………………
1,847
      
1,909
      
62
          
1,789
      
2,408
      
2,408
      
-
             
2,395
      
Citizens' Services .........................................................
846
        
906
        
60
          
896
        
1,130
      
1,130
      
-
             
1,181
      
Education and Child Care …………………………………
7,361
      
7,366
      
5
            
7,160
      
9,777
      
9,781
      
4
            
9,745
      
Emergency Management and Climate Readiness ……
48
          
77
          
29
          
107
        
117
         
443
        
326
        
428
        
Energy and Climate Solutions ………….…………………
57
          
63
          
6
            
127
        
108
         
108
        
-
             
554
        
Environment and Parks …………...………………………
160
        
226
        
66
          
216
        
215
         
225
        
10
          
266
        
Finance ………………………………………………………
941
        
781
        
(160)
       
623
        
1,491
      
1,536
      
45
          
2,653
      
Forests ………………………………………………………
648
        
1,035
      
387
        
1,147
      
900
         
1,327
      
427
        
1,437
      
Health ………………………………………………………
28,465
    
25,678
    
(2,787)
    
25,105
    
35,021
    
35,021
    
-
             
33,521
    
Housing and Municipal Affairs ……………………………
1,290
      
1,312
      
22
          
1,023
      
1,535
      
1,535
      
-
             
1,618
      
Indigenous Relations and Reconciliation ………………
109
        
176
        
67
          
263
        
186
         
186
        
-
             
297
        
Infrastructure ………………………………………………
45
          
36
          
(9)
           
38
          
55
           
55
          
-
             
52
          
Jobs and Economic Growth ………………....................
45
          
89
          
44
          
89
          
87
           
87
          
-
             
184
        
Labour ………………………………………………………
18
          
17
          
(1)
           
25
          
24
           
24
          
-
             
39
          
Mining and Critical Minerals ………………………………
41
          
135
        
94
          
41
          
58
           
71
          
13
          
67
          
Post-Secondary Education and Future Skills ...............
2,689
      
2,698
      
9
            
2,678
      
3,511
      
3,511
      
-
             
3,515
      
Public Safety and Solicitor General ..............................
828
        
878
        
50
          
878
        
1,108
      
1,108
      
-
             
1,141
      
Social Development and Poverty Reduction ................
4,314
      
4,259
      
(55)
         
3,988
      
5,709
      
5,709
      
-
             
5,138
      
Tourism, Arts, Culture and Sport …………………………
137
        
133
        
(4)
           
156
        
191
         
191
        
-
             
229
        
Transportation and Transit ………………………………
872
        
818
        
(54)
         
810
        
1,179
      
1,179
      
-
             
1,452
      
Water, Land and Resource Stewardship ………………
132
        
210
        
78
          
200
        
203
         
203
        
-
             
335
       
Total ministries and Office of the Premier ………… 51,680
    
49,711
    
(1,969)
    
48,273
    
66,057
    
66,882
    
825
        
67,496
    
Management of public funds and debt …………………
2,085
      
2,088
      
3
            
1,725
      
2,762
      
2,887
      
125
        
2,343
      
Contingencies Vote ………………………………………
-
             
1
            
1
            
-
             
4,000
      
4,000
      
-
             
1
            
Funding for capital expenditures …………………………
4,075
      
3,175
      
(900)
       
2,728
      
7,259
      
5,480
      
(1,779)
    
4,438
      
Refundable tax credit transfers …………………………
2,554
      
2,256
      
(298)
       
2,600
      
3,408
      
2,620
      
(788)
       
3,047
      
Legislative Assembly and other appropriations …………
176
        
173
        
(3)
           
212
        
243
         
243
        
-
             
299
       
Total appropriations ………………..…………………
60,570
    
57,404
    
(3,166)
    
55,538
    
83,729
    
82,112
    
(1,617)
    
77,624
    
Elimination of transactions between appropriations 2 …
(18)
         
(17)
         
1
            
(23)
         
(24)
          
(24)
         
-
             
(29)
         
Prior year liability adjustments ……………………………
-
             
-
             
-
             
-
             
-
             
(31)
         
(31)
         
(226)
      
Consolidated revenue fund expense ………………..…
60,552
    
57,387
    
(3,165)
    
55,515
    
83,705
    
82,057
    
(1,648)
    
77,369
    
Expenses recovered from external entities ……………
4,142
      
4,019
      
(123)
       
3,854
      
6,221
      
6,038
      
(183)
       
6,762
      
Elimination of funding provided to  
service delivery agencies ………………………………
(38,135)
  
(35,856)
 
2,279
      
(34,169)
 
(52,755)
   
(51,144)
 
1,611
      
(48,523)
Total direct program spending ………………..…………
26,559
    
25,550
    
(1,009)
    
25,200
    
37,171
    
36,951
    
(220)
       
35,608
   
Service delivery agency expense
School districts ……………………………………………
6,730
      
6,806
      
76
          
6,604
      
9,361
      
9,523
      
162
        
9,269
      
Universities …………………………………………………
5,279
      
5,131
      
(148)
       
5,020
      
7,333
      
7,201
      
(132)
       
6,978
      
Colleges and institutes ……………………………………
1,388
      
1,347
      
(41)
         
1,378
      
1,849
      
1,853
      
4
            
1,911
      
Health authorities and hospital societies ………………
24,070
    
21,493
    
(2,577)
    
21,077
    
30,509
    
30,605
    
96
          
29,123
    
Other service delivery agencies …………………………
5,985
      
6,089
      
104
        
5,585
      
8,992
      
8,963
      
(29)
         
8,504
     
Total service delivery agency expense ………………..
43,452
    
40,866
    
(2,586)
    
39,664
    
58,044
    
58,145
    
101
        
55,785
   
Subtotal expense ………………..…………………………
70,011
    
66,416
    
(3,595)
    
64,864
    
95,215
    
95,096
    
(119)
       
91,393
    
Expenditure management …………………………………
-
             
-
             
-
             
-
             
(300)
        
(400)
       
(100)
       
-
            
Total expense ………………………………………………
70,011
    
66,416
    
(3,595)
    
64,864
    
94,915
    
94,696
    
(219)
       
91,393
   
1
2 Reflects payments made under an agreement where an expense from a voted appropriation is recorded as revenue by a special account.     
Year-to-Date to December 31
Full Year
2025/26
2025/26
Restated to reflect government's organization and accounting policies as at December 31, 2025.

--- page 139 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 129
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
7aEle 4.7   202526 5eYenue E\ 6Rurce
Actual 
Actual 
($ millions)
Budget
Actual
Variance
2024/25 1
Budget
Forecast
Variance
2024/25
7a[atLRn
Personal income ………………………………… 13,152
 
13,808
   
656
        
12,693
   
17,751
 
19,186
   
1,435
    
17,026
   
Corporate income ………………………………… 4,143
   
4,958
     
815
        
4,689
     
6,209
   
7,957
     
1,748
    
8,262
     
Employer health …………………………………
2,375
   
2,327
     
(48)
         
2,358
     
3,147
   
3,075
     
(72)
        
3,056
     
Sales 2 ……………………………………………
8,367
   
8,209
     
(158)
       
8,010
     
10,961
 
10,687
   
(274)
      
10,363
   
Fuel …………………………………………………
738
      
798
        
60
          
765
        
950
      
1,014
     
64
         
979
        
Carbon 3 …………………………………………… 2,220
   
242
        
(1,978)
    
1,825
     
3,046
   
262
        
(2,784)
   
2,606
     
Tobacco ……………………………………………
364
      
252
        
(112)
       
352
        
450
      
291
        
(159)
      
412
        
Property …………………………………………… 2,990
   
3,002
     
12
          
2,852
     
4,025
   
4,067
     
42
         
3,837
     
Property transfer …………………………………
1,773
   
1,345
     
(428)
       
1,589
     
2,247
   
1,750
     
(497)
      
2,005
     
Insurance premium and other …………………
663
      
700
        
37
          
649
        
913
      
935
        
22
         
900
       
36785
35641
  
(1144)
    
35782
   
49699
49224
  
(475)
      
49446
  
1atural reVRurce
Natural gas royalties ……..…………………...…
633
      
530
        
(103)
       
400
        
920
      
942
        
22
         
672
        
Forests ……………………………………………
436
      
410
        
(26)
         
396
        
639
      
505
        
(134)
      
514
        
Other natural resource revenues 4 ……………… 1,109
   
835
        
(274)
       
912
        
1,438
   
1,108
     
(330)
      
1,230
    
2178
  
1775
    
(403)
       
1708
     
2997
  
2555
    
(442)
      
2416
    
2ther reYenue
Post-secondary education fees …...................
1,915
   
1,881
     
(34)
         
2,040
     
2,733
   
2,691
     
(42)
        
2,911
     
Other Fees and licenses 5 ………………………
1,802
   
1,918
     
116
        
1,857
     
2,539
   
2,607
     
68
         
2,557
     
Investment earnings ……………………………
1,321
   
1,501
     
180
        
1,664
     
1,815
   
1,823
     
8
           
2,159
     
Miscellaneous 6 …………………………………… 3,430
   
6,968
     
3,538
     
3,772
     
4,932
   
7,657
     
2,725
    
5,460
    
8468
   
12268
  
3800
    
9333
     
12019
14778
  
2759
    
13087
  
CRntrLEutLRnV IrRP the IeGeral gRYernPent
 
 
 
 
Health and social transfers ……………………… 7,433
   
7,371
     
(62)
         
7,155
     
9,911
   
9,822
     
(89)
        
9,542
     
Other federal government contributions 7 ……… 3,021
   
2,479
     
(542)
       
2,316
     
5,366
   
4,788
     
(578)
      
4,765
    
10454
9850
    
(604)
       
9471
     
15277
14610
  
(667)
      
14307
  
CRPPercLal CrRZn cRrpRratLRn net LncRPe
BC Hydro …………………………………………
316
      
353
        
37
          
324
        
712
      
712
        
-
            
587
        
Liquor Distribution Branch ………………………
846
      
816
        
(30)
         
891
        
1,027
   
950
        
(77)
        
1,094
     
BC Lottery Corporation 8 …………………………
940
      
966
        
26
          
984
        
1,279
   
1,269
     
(10)
        
1,295
     
ICBC ………………………………………………
656
      
837
        
181
        
1,222
     
800
      
800
        
-
            
1,653
     
Other 9 ………………………………………………
144
      
159
        
15
          
147
        
193
      
184
        
(9)
          
161
       
2902
  
3131
    
229
        
3568
     
4011
  
3915
    
(96)
        
4790
    
7Rtal reYenue ……………………………………… 60787
62665
  
1878
     
59862
   
84003
85082
  
1079
    
84046
  
1
2
3
4
5
6
7
8
9
includes only revenue related to output-based pricing system.
Includes Columbia Power Corporation, BC Railway Company, Columbia Basin power projects, and post-secondary institutions' self-supported subsidiaries.
Net of payments to the federal government and payments to the BC First Nations Gaming Revenue Sharing Limited Partnership in accordance with section 14.3 
of the Gaming Control Act (B.C.).
Healthcare-related, motor vehicle, and other fees.   
Miscellaneous revenue includes $2.725 billion in 2025/26 in relation to the tobacco settlement.
Includes contributions for health, education, community development, housing and social service programs, and transportation projects.              
Columbia River Treaty, other energy and minerals, water rental and other resources.   
Year-to-Date to December 31
Full Year
2025/26
2025/26
Includes provincial sales tax and HST/PST housing transition tax related to prior years.
Restated to reflect government's current accounting policies.

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2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
130 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
7aEle 4.8   202526 ([penVe E\ )unctLRn
Actual
Actual
($ millions)
Budget
Actual
Variance
2024/25 1
Budget 1
Forecast
Variance
2024/25 1
Health 2…......................................................................
31,893
    
28,462
    
(3,431)
     
27,814
    
38,905
  
39,017
    
112
       
38,066
    
Education 3…................................................................
14,600
    
14,246
    
(354)
        
13,934
    
19,791
  
19,716
    
(75)
        
19,562
    
Social services…..........................................................
8,490
      
7,894
      
(596)
        
7,904
      
11,255
  
10,520
    
(735)
      
10,841
    
Protection of persons and property ………………………
1,928
      
2,025
      
97
           
2,027
      
2,616
    
2,940
      
324
       
3,129
      
Transportation …………………………..........................
2,011
      
1,904
      
(107)
        
1,760
      
2,885
    
2,699
      
(186)
      
2,921
      
Natural resources and economic development …………
2,901
      
3,550
      
649
         
4,089
      
4,519
    
4,564
      
45
         
6,116
      
Other ………………………………………………………
2,974
      
2,547
      
(427)
        
2,279
      
3,418
    
3,419
      
1
           
4,017
      
Contingencies 4……………………………………………
-
             
-
              
-
              
-
              
4,000
    
4,000
      
-
            
-
              
General government ………………………………………
1,458
      
2,211
      
753
         
1,882
      
2,466
    
2,782
      
316
       
2,496
      
Debt servicing ………………………………………………
3,755
      
3,577
      
(178)
        
3,175
      
5,060
    
5,039
      
(21)
        
4,245
     
7Rtal e[penVe ……………………………………………
70011
    
66416
   
(3595)
     
64864
    
94915
 
94696
   
(219)
      
91393
   
1
2
3
4
Payments for training costs by the Ministry of Social Development and Poverty Reduction made on behalf of its clients are reported in the Education function.
Contingencies for the prior fiscal year are reported in the relevant functions; the current year forecast is not yet allocated to functions.
Restated to reflect government's current organization and accounting policies as at December 31, 2025.
Year-to-Date to December 31
Full Year
2025/26
2025/26
Payments for healthcare services by the Ministry of Social Development and Poverty Reduction and the Ministry of Children and Family Development made on behalf 
of their clients are reported in the Health function.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 131
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
7aEle 4.9  202526 CapLtal 6penGLng
Actual
Actual
 ($ millions)
Budget
Actual
Variance
2024/25
Budget
Forecast
Variance
2024/25
7a[pa\erVuppRrteG
Education
School districts ……………………………
1,060
     
1,061
     
1
           
843
        
1,508
     
1,377
     
(131)
      
1,199
     
Post-secondary institutions ………………
1,143
     
814
        
(329)
      
1,022
     
1,708
     
1,484
     
(224)
      
1,527
     
Health …………………………………………
2,650
     
1,682
     
(968)
      
1,707
     
5,009
     
3,713
     
(1,296)
   
3,226
     
BC Transportation Financing Authority ……
3,927
     
3,099
     
(828)
      
2,334
     
5,069
     
4,027
     
(1,042)
   
3,013
     
BC Transit ……………………………………
209
        
197
        
(12)
        
109
        
289
        
295
        
6
           
151
        
Government ministries ……………………
385
        
223
        
(162)
      
276
        
653
        
562
        
(91)
        
468
        
Social housing 1 ……………………………
593
        
526
        
(67)
        
403
        
888
        
775
        
(113)
      
603
        
Other …………………………………………
182
        
137
        
(45)
        
140
        
250
        
234
        
(16)
        
192
       
7Rtal ta[pa\erVuppRrteG ………………… 10149
   
7739
     
(2410)
  
6834
     
15374
    
12467
    
(2907)
   
10379
   
6elIVuppRrteG
BC Hydro ……………………………………
3,198
     
2,772
     
(426)
      
3,037
     
4,469
     
4,288
     
(181)
      
4,015
     
Columbia Basin power projects 2 …………
14
          
11
          
(3)
          
9
            
18
          
18
          
-
            
16
          
BC Railway Company ………………………
3
            
3
            
-
            
3
            
5
            
4
            
(1)
          
4
            
ICBC …………………………………………
30
          
23
          
(7)
          
34
          
199
        
178
        
(21)
        
43
          
BC Lottery Corporation 3……………………
79
          
39
          
(40)
        
57
          
105
        
98
          
(7)
          
100
        
Liquor Distribution Branch …………………
25
          
6
            
(19)
        
14
          
32
          
20
          
(12)
        
22
          
Other 4 ………………………………………
-
             
-
             
-
            
-
             
-
             
-
             
-
            
202
       
7Rtal VelIVuppRrteG ………………………
3349
    
2854
    
(495)
      
3154
    
4828
    
4606
    
(222)
      
4402
    
7Rtal capLtal VpenGLng ……………………
13498
    
10593
    
(2905)
  
9988
     
20202
    
17073
    
(3129)
   
14781
   
1
2
3
4 Includes post-secondary institutions' self-supported subsidiaries.
Includes BC Housing Management Commission.
Year-to-Date to December 31
2025/26
Full Year
2025/26
Joint ventures of the Columbia Power Corporation and Columbia Basin Trust.
Excludes right-of-use assets except for 2024/25 full year actual.

--- page 142 ---
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
132 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
7aEle 4.10   202526 PrRYLncLal DeEt 1 
Actual
Actual
($ millions)
Budget
Actual
Variance
2024/25
Budget
Forecast
Variance
2024/25
7a[pa\erVuppRrteG GeEt
PrRYLncLal gRYernPent
Operating ……………………………………
28,000
    
30,899
    
2,899
      
17,796
     
29,703
     
31,866
    
2,163
       
24,516
    
Capital 2 ………………………………………
49,830
    
48,879
    
(951)
        
43,822
     
52,268
     
51,330
    
(938)
        
45,539
   
7Rtal prRYLncLal gRYernPent ….................
77,830
    
79,778
    
1,948
      
61,618
     
81,971
     
83,196
    
1,225
       
70,055
   
Taxpayer-supported entities
BC Transportation Financing Authority …… 28,000
    
26,975
    
(1,025)
     
23,912
     
29,775
     
27,979
    
(1,796)
      
24,078
    
Health authorities and hospital societies…
2,376
      
2,296
      
(80)
          
2,350
       
2,287
       
2,281
      
(6)
            
2,333
      
Post-secondary institutions …………………
982
         
1,005
      
23
           
908
          
984
          
1,000
      
16
            
976
         
Social housing 3 ……………………………
2,237
      
1,569
      
(668)
        
1,220
       
2,584
       
1,642
      
(942)
        
1,237
      
Other …………………………………………
619
         
433
         
(186)
        
407
          
1,118
       
442
         
(676)
        
410
        
Total taxpayer-supported entities…..............
34,214
    
32,278
    
(1,936)
     
28,797
     
36,748
     
33,344
    
(3,404)
      
29,034
   
7Rtal ta[pa\erVuppRrteG GeEt ……………… 112044
  
112056
  
12
           
90415
     
118719
   
116540
  
(2179)
      
99089
    
6elIVuppRrteG GeEt ……………………………
36938
    
37015
   
77
           
34585
    
37913
     
37519
   
(394)
        
34788
   
7Rtal prRYLncLal GeEt …………………………
148982
  
149071
 
89
           
125000
  
156632
   
154059
 
(2573)
      
133877
 
1
2
3 Includes debt incurred by BC Housing Management Commission to fund investments in affordable housing. The debt forecast reflects projects that have been 
approved as of December 2025.
Includes debt incurred by the government to fund the building of capital assets in the education, health, social housing and other sectors.
Year-to-Date to December 31
Full Year
2025/26
2025/26
Provincial debt is prepared in accordance with Generally Accepted Accounting Principles and presented consistent with the Debt Summary Report included in the 
Public Accounts . Debt is shown net of sinking funds and unamortized discounts, excludes accrued interest and foreign exchange adjustments, and includes non-
guaranteed debt directly incurred by commercial Crown corporations and debt guaranteed by the Province.

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 133
2025/26 UPDATED FINANCIAL FORECAST (THIRD QUARTERLY REPORT)
Table 4.11  2025/26 Statement of Financial Position
Actual
Year-to-Date
Forecast
March 31,
December 31,
March 31,
($ millions)
2025
2025
2026
Financial assets:
Cash and temporary investments …………………………………………………………
13,341
       
11,156
        
8,555
         
Other financial assets ………………………………………………………………………
24,071
       
26,836
        
27,517
       
Sinking funds ………………………………………………………………………………
562
            
578
             
363
            
Investments in commercial Crown corporations:
Retained earnings …………………………………………………………………………
16,985
       
18,293
        
18,629
       
Recoverable capital loans ………………………………………………………………
33,577
       
35,517
        
35,736
      
Total investments in commercial Crown corporations…............................................
50,562
       
53,810
        
54,365
      
Total financial assets…..............................................................................................
88,536
       
92,380
        
90,800
      
Liabilities:
Accounts payable, accrued liabilities and others…………………………………………
24,395
       
20,930
        
24,154
       
Deferred revenue ……………………………………………………………………………
16,213
       
17,930
        
17,721
       
Debt:
Taxpayer-supported debt ………………………………………………………………
99,089
       
112,056
      
116,540
     
Self-supported debt ………………………………………………………………………
34,788
       
37,015
        
37,519
      
Total provincial debt …………………………………………………………………………
133,877
     
149,071
      
154,059
     
Add: debt offset by sinking funds ………………………………………………………
562
            
578
             
363
            
Add: foreign exchange adjustments ……………………………………………………
2,434
         
1,327
          
1,803
         
Less : guarantees and non-guaranteed debt …………………………………………
(1,639)
        
(1,616)
         
(1,789)
       
Financial statement debt ……………………………………………………………………
135,234
     
149,360
      
154,436
    
Total liabilities ………………………………………………………………………………
175,842
     
188,220
      
196,311
    
Net liabilities …………………………………………………………………………………
(87,306)
      
(95,840)
       
(105,511)
   
Capital and other non-financial assets:
Tangible capital assets ……………………………………………………………………
72,736
       
78,078
        
81,961
       
Other non-financial assets …………………………………………………………………
4,560
         
4,681
          
4,669
        
Total capital and other non-financial assets…........................................................
77,296
       
82,759
        
86,630
      
Accumulated deficit ……………………………..…………………………………………
(10,010)
      
(13,081)
       
(18,881)
     
                    Changes in Financial Position
Year-to-Date
Forecast
December 31,
March 31,
($ millions)
2025
2026
Deficit for the period …………………………………………………………………………………………
3,751
          
9,614
         
Change in remeasurement (gains) losses …………………………………………………………………
(680)
            
(743)
          
Increase in accumulated deficit…………………………………………………………………………………………
3,071
          
8,871
        
Capital and other non-financial asset changes:
Taxpayer-supported capital investments ……………………………………………………………………
7,739
          
12,467
       
Less: amortization and other accounting changes ……………………………………………………
(2,397)
         
(3,242)
       
Increase in net capital assets ………………………………………………………………………………
5,342
          
9,225
         
Increase (decrease) in other non-financial assets …………………………………………………………
121
             
109
           
Increase in capital and other non-financial assets …………………………………………………………
5,463
          
9,334
        
Increase in net liabilities ....................................................................................................................
8,534
          
18,205
      
Investment and working capital changes:
Investment in commercial Crown corporations:
Increase in retained earnings ………………………………………………………………………………
1,308
          
1,644
         
Self-supported capital investments ………………………………………………………………………
2,854
          
4,606
         
Less: loan repayments and other accounting changes ………………………………………………
(914)
            
(2,447)
       
Increase in investment in commercial Crown corporations ………………………………………………
3,248
          
3,803
         
Increase (decrease) in cash and temporary investments …………………………………………………
(2,185)
         
(4,786)
        
Increase (decrease) in other working capital………………………………………………………………
4,529
          
1,980
        
Increase (decrease) in investment and working capital ………………………………………………
5,592
          
997
           
Increase in financial statement debt ………………………………………………………………………
14,126
        
19,202
       
Change in sinking fund debt and foreign exchange adjustments…………………………………………
1,091
          
830
            
Increase (decrease) in guarantees and non-guaranteed debt ……………………………………………
(23)
              
150
           
Increase in total provincial debt ……………………………………………………………………………
15,194
        
20,182
      

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 135
APPENDIX
A1        Tax Expenditures .....................................................................................................................137
A1.1.1  Personal Income Tax – Tax Expenditures (Refundable Tax Credits) ..........................................139
A1.1.2  Corporate Income Tax – Tax Expenditures (Refundable Tax Credits) .......................................140
A1.2.1  Personal Income Tax – Tax Expenditures (Deductions and Non-Refundable Tax Credits) ........141
A1.2.2  Corporate Income Tax – Tax Expenditures (Deductions and Non-Refundable Tax Credits) .....143
A1.3     Property Taxes – Tax Expenditures ...........................................................................................143
A1.4     Consumption Taxes – Tax Expenditures ...................................................................................145
A1.5     Employer Health Tax – Tax Expenditures ................................................................................146
A1.6     Insurance Premium Tax – Tax Expenditures .............................................................................146
A2        Interprovincial Comparisons of Tax Rates – 2026 ....................................................................147
A3        Comparison of Provincial and Federal Taxes by Province – 2026 .............................................148
A3.1     Comparison of Property Taxes – 2025 .....................................................................................150
A4        Interprovincial Comparisons of Provincial Personal Income Taxes Payable – 2026 ...................151
A5        Material Assumptions – Revenue .............................................................................................153
A6        Natural Gas Price Forecasts – 2026/27 to 2028/29 ..................................................................159
A7        Material Assumptions – Expense ..............................................................................................160
A8        Operating Statement – 2019/20 to 2028/29 ............................................................................163
A9        Revenue by Source – 2019/20 to 2028/29 ...............................................................................164
A10      Revenue by Source Supplementary Information – 2019/20 to 2028/29 ...................................165
A11      Expense by Function – 2019/20 to 2028/29 ............................................................................166
A12      Expense by Function Supplementary Information – 2019/20 to 2028/29 ................................167
A13      Full-Time Equivalents (FTEs) 2019/20 to 2028/29 .................................................................168
A14      Capital Spending – 2019/20 to 2028/29 ..................................................................................169
A15      Statement of Financial Position – 2019/20 to 2028/29 ............................................................170
A16      Changes in Financial Position – 2019/20 to 2028/29 ..............................................................171
A17      Provincial Debt – 2019/20 to 2028/29 ....................................................................................172
A18      Provincial Debt Supplementary Information – 2019/20 to 2028/29 ........................................173
A19      Key Provincial Debt Indicators – 2019/20 to 2028/29 .............................................................174

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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 137
APPENDIX
A1: Tax Expenditures
Introduction
Tax expenditures reduce the amount of tax a taxpayer pays and are used to deliver 
government programs or benefits through the tax system. Tax expenditures are usually 
made by offering special tax rates, exemptions or credits. Governments introduce 
tax expenditures primarily to achieve social policy objectives such as transfers to 
lower-income families or to promote economic development and job creation.
Reporting tax expenditures improves government accountability by providing a more 
complete picture of government activities. Beginning with Budget 2012, refundable tax 
transfers are accounted for in a voted appropriation. For transparency and consistency 
with previous tax expenditure reports, Tables A1.1.1 and A1.1.2 also report on these tax 
transfers.
Te Role of Tax Expenditure Programs
Using the tax system to deliver programs can reduce administration costs and compliance 
costs for recipients. In certain situations, the tax system allows intended beneficiaries to 
be readily identified from information that is already collected. In these cases, setting up 
a separate expenditure program would result in costly overlap and duplication of effort. 
An example is the B.C. family benefit, which is delivered through the income tax system 
by the Canada Revenue Agency. If this were a direct provincial expenditure program, 
a provincial agency or office would have to be established to duplicate much of the work 
already done by the Canada Revenue Agency. In addition, it would require individuals to 
undertake a separate, time-consuming application process to qualify for the benefit.
Tere are several potential drawbacks to tax expenditure programs. First, their overall 
cost often receives less public scrutiny than is the case for spending programs because 
annual budget appropriations by the legislature are not typically required. Second, 
tax expenditure programs do not always effectively target those who are intended to 
benefit from them. Some tax expenditure programs that are intended to provide tax relief 
for lower-income earners may, in reality, provide the greatest benefit to higher-income 
earners who pay the most taxes. Finally, costs are often more difficult to control under 
a tax expenditure program because the benefits tend to be more open-ended and 
enforcement is often more difficult than for spending programs.
Tax Expenditure Reporting
Not all tax reductions, credits, exemptions, and refunds are classed as tax expenditures.
Te emphasis is on tax reductions, credits, exemptions, and refunds that are close 
equivalents to spending programs. By implication, the list does not include tax measures 
designed to meet broad tax policy objectives such as improving fairness in the tax system 
or measures designed to simplify the administration of a tax. Te list also does not 
include anything that is not intended to be part of a tax base.
Tax expenditures that cost less than $2 million annually are generally not included. 
Where practical, smaller items have been presented together as an aggregate figure or 
have been excluded to ensure taxpayer confidentiality is maintained.

--- page 148 ---
APPENDIX
138 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
British Columbia Tax Expenditures
Tables A1.1.1 to A1.6 report tax expenditure estimates.
Te cost of individual tax expenditures cannot be added together to reach a total tax 
expenditure figure for two reasons: in some cases, the programs interact with one another 
so that eliminating one program could increase or decrease the cost of another; and 
eliminating certain tax expenditure programs could change the choices taxpayers make, 
which in turn would affect the cost estimates.
Te estimates for each tax expenditure are based on a static analysis of the costs and 
do not consider any behavioural changes, which could change the costs over time. 
In addition, estimates are generally recalculated each year using current data sources and 
using refinements to the methods of estimation, which can result in significant changes 
to the value of a given tax expenditure from prior years’ reports.
Tables A1.1.1 and A1.1.2 list tax programs delivered through refundable personal and 
corporate income tax credits, respectively. Refundable tax credits can be used to reduce 
income tax liabilities with any remainder refunded to the taxpayer. Tese tax credits are 
reported in a voted appropriation.
Tables A1.2.1 and A1.2.2 list tax expenditures that are deductions, exemptions, or non 
refundable tax credits for personal and corporate income tax, respectively. Deductions 
reduce taxable income, whereas non-refundable tax credits can only be used to reduce 
income taxes payable. Te tables include both provincial measures and federal measures. 
Federal measures are deductions and exemptions that reduce B.C. income tax. Under 
the tax collection agreement between B.C. and the federal government, the federal 
government has sole responsibility for determining income subject to tax, including 
B.C. tax.
Table A1.3 lists property tax exemptions and grants. Property tax exemptions can reduce 
the tax owing or remove a property from taxation. Grants reduce the final tax owing and 
may be refunded after full payment has been received. Exemptions are used to define the 
tax base; estimates for property tax expenditures for government entities, municipalities, 
colleges, schools, hospitals, and similar public facilities are not shown.
Table A1.4 lists consumption tax exemptions. Fuel tax estimates include point-of-sale 
exemptions for certain individuals and businesses, and refunds if fuel is purchased then 
subsequently used for an exempt purpose. Provincial sales tax exemptions are typically 
point-of-sale exemptions and either apply to everyone at the point of sale or apply in 
certain circumstances with appropriate documentation.
Table A1.5 reports employer health tax expenditures.
Table A1.6 reports an insurance premium tax exemption for marine insurance.
More information on British Columbia tax expenditures in Tables A1.1.1 to A1.6 
can be found at https://www2.gov.bc.ca/gov/content/taxes. Information on federal tax 
expenditures in Tables A1.2.1 and A1.2.2 can be found at https://www.canada.ca/en/
services/taxes/income-tax.html.

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| 139
APPENDIX
($ millions)
($ millions)
($ millions)
B.C. Family Benefit ............................................................................................
696
                
579
                
520
                
• Tax-free monthly payment made to eligible families to help with the cost of 
raising children under age 18.
• The maximum benefit was increased July 2023 to $1,750 for a family's 
first child, $1,100 for a second child, and $900 for each subsequent child.
• A temporary B.C. Family Benefit Bonus was paid out to eligible families from July
2024 to June 2025.
• Budget 2026  introduces a new disability supplement of $6,000 per eligible child 
for qualifying families.
Climate action tax credit ...................................................................................
980
                
310
                
-
                     
• Helped offset the impact of the carbon taxes paid by low- to moderate-income 
individuals and families.
• The benefit varied based on the composition of the family and their family net income.
• Introduced in 2008 with the carbon tax.
• Eliminated April 1, 2025 with the removal of the carbon tax.
Home renovation tax credit for seniors and persons with disabilities ........
2
                    
2
                    
3
                    
• Assists eligible individuals 65 and over and persons with disabilities with the cost 
of certain permanent home renovations to improve accessibility, functionality,
or mobility at home.
• Recipients may receive up to 10 per cent of qualifying renovation expenses,
up to a maximum of $10,000 of qualifying renovation expenses.
• Introduced in 2012.
Renter's tax credit .............................................................................................
90
                  
260
                
232
                
• Provides low- to moderate-income households that rent with an income-tested
refundable income tax credit of up to $400.
• Introduced in 2023.
Sales tax credit ..................................................................................................
35
                  
37
                  
42
                  
• Helps offset the cost of provincial sales tax for low-income individuals and families.
• The maximum benefit is $75 for individuals and $150 for couples.
• Reintroduced in 2013 in conjunction with reimplementation of the provincial sales tax.
Small business venture capital tax credit ......................................................
11
                  
38
                  
40
                  
• Encourages investors to make early-stage equity investments that help B.C. small
businesses develop and grow.
• Individuals receive a credit of up to 30 per cent of their investment and may claim a 
benefit of up to $300,000 from the 2025 tax year (previously $120,000).
• Budget 2025 temporarily increased the tax credit budget by $15 million for the 
2025 to 2028 tax years to support additional investments across all sectors.
• Introduced in 1979.
Training tax credits3 ..........................................................................................
7
                    
9
                    
10
                  
• Provides refundable income tax credits for apprentices based on the apprenticeship
level completed.
• Provides refundable income tax credits for employers of up to 15 per cent
of apprentices' salaries.
• Introduced in 2007.
• Sunset date of December 31, 2028. 
1
2
3
Table A1.1.1  Personal Income Tax – Tax Expenditures (Refundable Tax Credits) 
2026/27 
Planned Cost
2025/26 
Estimated Cost2
 2024/25
Actual Cost1
Training tax credits for corporations are listed in Table A1.1.2. The training tax credit for individuals includes tax credits for apprentices and unincorporated 
employers.
Figures include prior year adjustments of -$113 million for the renter's tax credit, -$10 million for the sales tax credit, -$19 million for the small business venture 
capital tax credit, and -$4 million for the training tax credit.
Figures include prior year adjustments of -$1 million for the home renovation tax credit for seniors and persons with disabilities, $30 million for the renter's tax 
credit, -$5 million for the sales tax  credit, -$2 million for the small business venture capital tax credit,  and -$1 million for the training tax credit.

--- page 150 ---
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140 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
($ millions)
($ millions)
($ millions)
Book publishing tax credit ...............................................................................
3
                    
3
                    
3
                    
• Supports book publishers that carry out business primarily in British Columbia.
• Introduced in 2003. 
• Budget 2026 removes sunset date of March 31, 2026.
Film Incentive B.C. tax credit ...........................................................................
138
                
161
                
176
                
• Supports film and television productions in British Columbia. The Film Incentive B.C.
tax credit is for domestic productions meeting Canadian content requirements.
• Basic, regional location, and film training tax credits were introduced in 1998.
• Digital animation and visual effects tax credit was introduced
in 2008 and expanded to post-production activities in 2015.
• Distant location tax credit was introduced in 2009.  
• Scriptwriting tax credit was introduced in 2018.
• Tax credit does not have a sunset date.
• The basic credit was increased from 35 per cent to 40 per cent for productions 
with principal photography starting on or after January 1, 2025.
Production services tax credit .........................................................................
814
                
420
                
751
                
• Supports film and television productions in British Columbia. The production
services tax credit is available to both domestic and foreign producers.
• Introduced in 1998.  
• Regional location tax credit and digital animation and visual effects (DAVE) tax credit
introduced in 2008. Post-production activities became eligible for the DAVE credit
in 2015.
• Distant location tax credit was introduced in 2009.  
• Major production tax credit was introduced in 2025.
• Tax credit does not have a sunset date.
• The basic credit was increased from 28 per cent to 36 per cent for productions
with principal photography starting on or after January 1, 2025.
Interactive digital media tax credit ...................................................................
126
                
168
                
163
                
• Supports the development of interactive digital media products in British Columbia.
• In 2017, eligibility was expanded to small business venture capital corporations,
and principal business requirements were relaxed for corporations with 
annual qualifying B.C. labour expenditures greater than $2 million.
• Introduced in 2010.
• Sunset date for tax credit removed in Budget 2025.
Mining exploration tax credit ...........................................................................
48
                  
73
                  
60
                  
• Supports eligible corporations conducting grassroots mineral exploration in
British Columbia.
• Introduced for expenditures incurred after July 31, 1998; expanded to active
partners in partnerships effective after March 31, 2003; enhanced for prescribed
areas effective after February 20, 2007.
• Tax credit does not have a sunset date.
Scientific research and experimental development tax credit 3 ...................
118
                
150
                
150
                
• Supports research and development carried on in British Columbia.
• Budget 2026  restores the eligibility of capital expenditures, increases the
expenditure and taxable capital phase-out thresholds, and expands the eligibility
of the refundable tax credit to eligible Canadian public corporations.
• Introduced in 1999.
• Budget 2026  removes sunset date of August 31, 2027.
1
2
3
Table A1.1.2  Corporate Income Tax – Tax Expenditures (Refundable Tax Credits) 
2024/25
Actual Cost1
2025/26 
Estimated Cost2
2026/27 
Planned Cost
The scientific research and experimental development tax credit has a non-refundable component, which is reported in Table A1.2.2.
Figures include prior year adjustments of -$1 million for the Film Incentive BC tax credit, -$264 million for the production services tax credit, $14 million for the 
interactive digital media tax credit, $13 million for the mining exploration tax credit, and $8 million for the scientific research and experimental development tax 
credit.
Figures include prior year adjustments of -$14 million for the Film Incentive BC tax credit, $25 million for the production services tax credit, -$10 million for the 
interactive digital media tax credit, -$12 million for the mining exploration tax credit, and $2 million for the scientific research and experimental development tax 
credit.

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| 141
APPENDIX
($ millions)
($ millions)
($ millions)
Training tax credits 3 ............................................................................................
7
                    
9
                    
10
                  
• Provides refundable income tax credits for employers of up to 30 per cent
of apprentices' salaries.
• Includes tax credit for shipbuilding and ship repair industry.
• Introduced in 2007.
• Sunset date of December 31, 2027.
1
2
3
($ millions)
($ millions)
($ millions)
Provincial Measures
Age tax credit .................................................................................................
104
                
109
                
120
                
• Provides an income-tested tax credit to seniors.
• Introduced in 2000.
B.C. caregiver tax credit ................................................................................
8
                    
8
                    
9
                    
• Provides a tax credit to individuals who care for family members with a disability.
• Introduced in 2018 in response to changes to the federal caregiver tax credit.
Canada Pension Plan tax credit ...................................................................
274
                
287
                
316
                
• Provides a tax credit to individuals who make Canada Pension Plan contributions.
• Introduced in 2000.
Charitable donations tax credit ....................................................................
391
                
399
                
407
                
• Provides a tax credit to individuals who make charitable donations to registered 
charities and eligible donees.
• Introduced in 2000.
Disability tax credit ........................................................................................
67
                  
71
                  
78
                  
• Provides a tax credit to persons with a disability.
• Introduced in 2000.
Employment Insurance tax credit ................................................................
84
                  
88
                  
97
                  
• Provides a tax credit to individuals who pay Employment Insurance premiums.
• Introduced in 2000.
Medical expense tax credit ...........................................................................
110
                
115
                
126
                
• Provides a tax credit to individuals who incur sufficient qualifying medical expenses.
• Introduced in 2000.
Mining flow-through share tax credit ..........................................................
35
                  
35
                  
35
                  
• Provides a tax credit to individuals who invest in flow-through shares on renounced 
mining expenditures.
• Introduced in 2001.
Pension tax credit ..........................................................................................
34
                  
35
                  
39
                  
• Provides a tax credit to individuals who receive amounts from private pension plans.
• Introduced in 2000.
Political contribution tax credit ....................................................................
4
                    
5
                    
5
                    
• Provides a tax credit to individuals who donate to provincial political parties,
constituency associations, or candidates.
• Introduced in 2000. Prior to 2000, B.C. had a similar deduction rather than a credit.
2025/26 
Estimated Cost
2024/25
Actual Cost1
Training tax credits for individuals are reported in Table A1.1.1.
Table A1.2.1  Personal Income Tax – Tax Expenditures (Deductions and Non-Refundable Tax Credits) 
2026/27 
Planned Cost
Table A1.1.2  Corporate Income Tax – Tax Expenditures (Refundable Tax Credits) (continued) 
2025/26 
Estimated Cost2
2024/25
Actual Cost
2026/27
Planned Cost
Figures include prior year adjustments of -$3 million for the training tax credit.
Figures include prior year adjustments of -$1 million for the training tax credit.

--- page 152 ---
APPENDIX
142 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
(continued)
($ millions)
($ millions)
($ millions)
Provincial Measures (continued)
Spousal and eligible dependant tax credits ...............................................
124
                
130
                
143
                
• Provides a tax credit to individuals who have a low-income spouse or to single 
parents who support a minor child.
• Introduced in 2000.
Tuition tax credit ............................................................................................
94
                  
98
                  
108
                
• Provides a tax credit for tuition paid to a post-secondary institution.
• Costs also include education tax credit amounts that have been carried forward
in respect of studies prior to the elimination of that tax credit in 2019.
• Unused tax credits may be carried forward to future years.
• Introduced in 2000.
Federal Measures 1
Child care expense deduction ......................................................................
64
                  
62
                  
58
                  
• Allows families to deduct child care costs from taxable income.
• Introduced in 1972.
Non-taxation of business-paid health and dental benefits .......................
257
                
268
                
281
                
• Provides that private health and dental benefits are not taxed.
• Introduced in 1948.
Northern residents deduction ......................................................................
18
                  
18
                  
19
                  
• Provides a deduction to individuals living in northern communities.
• Introduced in 1987.
Pension income splitting ..............................................................................
119
                
128
                
138
                
• Allows for spouses to split pension income, other than income from the Canada
Pension Plan and Old Age Security.
• Introduced in 2007.
Registered pension plans .............................................................................
1,322
             
1,341
             
1,370
             
• Allows amounts contributed to a pension plan to be deducted from taxable income.
• Introduced in 1919.
Registered retirement savings plans (RRSPs) ...........................................
784
                
788
                
792
                
• Allows amounts contributed to an RRSP to be deducted from taxable income.
• Introduced in 1957.
Tax-free savings accounts (TFSAs) .............................................................
267
                
314
                
364
                
• Allows for investment income to be earned tax-free within a TFSA.
• Introduced in 2009.
1
2026/27 
Planned Cost
2024/25
Actual Cost
2025/26 
Estimated Cost
These items show the foregone provincial revenue resulting from federal measures. Each measure is calculated from the 2025 federal cost projections as 
reported in the Government of Canada's Report on Federal Tax Expenditures 2025 by applying British Columbia residents' share of the measure and the 
relevant tax rates. Certain tax expenditure items have been excluded where no data is available or the amounts are immaterial.
Table A1.2.1  Personal Income Tax – Tax Expenditures (Deductions and Non-Refundable Tax Credits) 

--- page 153 ---
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| 143
APPENDIX
($ millions)
($ millions)
($ millions)
Provincial Measures
Small business venture capital tax credit …...............................................
6
                    
5
                    
5
                    
• See description under Table A1.1.1.
• Corporations receive a credit of up to 30 per cent of their investment. There is no 
annual limit on the benefit that can be claimed.
Scientific research and experimental development tax credit 1 ................
198
                
128
                
143
                
• See description under Table A1.1.2.
Small business corporate income tax rate ……………………………………
1,750
             
1,745
             
1,860
             
• Provides a reduced income tax rate for Canadian-controlled private corporations 
on active business income up to $500,000.
• Includes savings for credit unions, which are also reported below.
• Introduced in 1975.
Small business corporate income tax rate for credit unions …….........
12
                  
12
                  
13
                  
• Provides a reduced income tax rate for credit unions on a portion of taxable income.
• Introduced in 1977.
• This tax credit expenditure reflects the savings provided to credit unions from the 
small business rate.
Federal Measure 2
Charitable donations deduction ...................................................................
90
                  
87
                  
94
                  
• Generally permits corporations to deduct charitable donations made to registered
charities up to a maximum of 75 per cent of the corporation’s taxable income.
The limit may be exceeded for donations of certain items.
• Encourages corporations to make donations to charities.
• Introduced in 1929 for certain charities, and expanded to all charities by 1933.
1
2
Table A1.3  Property Taxes – Tax Expenditures 
            
($ millions)
($ millions)
($ millions)
School and Rural Area Property Tax 
Assessment exemption of $10,000 for business properties 1 …...............
5
                    
5
                    
5
                    
• Assessed improvement values for property tax are reduced by $10,000 for each
industrial and business property.  
• Introduced in 1984. 
Overnight tourist accommodation assessment relief 1 .............................
2
                    
2
                    
2
                    
• Reduces the taxable assessed value of smaller tourist accommodation properties.
• Introduced in 1988. 
• Assessment reductions for properties in rural areas were increased in 2016.
Home owner grant .........................................................................................
914
                
931
                
925
                
• Reduces property taxes for Canadian citizens and permanent residents of Canada
who use the property as their principal residence. The benefit relative to tax paid is 
greater for lower-valued homes.
• The grant is phased out on properties with an assessed value above a threshold
value. Low-income seniors and some other low-income individuals may be eligible
for a low-income grant supplement if some or all of the grant is reduced because
of the phase-out.
• The grant is up to $275 higher for seniors, eligible veterans, and persons with disabilities.
• The northern and rural home owner benefit will be repealed on January 1, 2027. 
This benefit, implemented in 2011, provides an additional $200 to eligible home 
owners outside the Capital, Metro Vancouver, and Fraser Valley regional districts.
• Introduced in 1957.
1 Estimates are for the most recent calendar year of the fiscal year and include only school and rural area property taxes levied by the Province.  
2024/25
Actual Cost
2025/26 
Estimated Cost
2026/27 
Planned Cost
Table A1.2.2  Corporate Income Tax – Tax Expenditures (Deductions and Non-Refundable Tax Credits)  
2024/25
Actual Cost
2025/26 
Estimated Cost
2026/27 
Planned Cost
The scientific research and experimental development tax credit has a refundable component, which is reported in Table A1.1.2.
The deduction for corporate charitable donations is a federal measure but the estimate shows only the foregone provincial revenue. This is calculated from the 
2025 federal cost projection as reported in the Government of Canada's Report on Federal Tax Expenditures 2025 by applying British Columbia's share of 
corporate taxable income and the relevant tax rates to the federal estimate.

--- page 154 ---
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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A1.3  Property Taxes – Tax Expenditures (continued)                                                                                
($ millions)
($ millions)
Property Transfer Tax
Exemptions for the following:
First time home buyers .......................................................................................................
121
                
130
                
• For qualifying first time home buyers, an exemption from property transfer tax on the first $500,000 
of the property's fair market value.
• The homeowner must live in the home as their principal residence for at least one year after
purchase and the property must have a fair market value of $835,000 or less. A phase-out applies
for homes up to $860,000.
• Introduced in 1994. 
Newly built home .................................................................................................................
96
                  
128
                
• For qualifying newly built home buyers, an exemption for property with a fair market value 
of up to $1,100,000. A partial exemption applies up to $1,150,000.
• The homeowner must live in the home for at least one year after purchase. There is no requirement
to live in B.C. before the purchase.
• Introduced in 2016.
Property transfers between related individuals ...............................................................
225
                
234
                
• Longstanding exemption for spousal and intergenerational transfers for principal residences, 
recreational properties, family farms, and in the event of a division of property due to divorce 
or marital breakdown. Available to Canadian citizens and permanent residents of Canada.
Property transfers to municipalities, regional districts, hospital districts, library 
boards, school boards, water districts ……......................................................................
33
                  
24
                  
• Longstanding exemption for transfers to specified public bodies.
Purpose built rentals…….................................................................................................
4
                    
9
                    
• Exempts qualifying new purpose built rentals from the further 2 per cent and the general
property transfer tax.
• Introduced in 2024 and 2025, respectively.
Property transfers to charities registered under the Income Tax Act  (Canada) ….......
23
                  
23
                  
• Longstanding exemption for transfers of properties to a registered charity or a specified individual
where the land will be used for a charitable purpose.
Speculation and Vacancy Tax 2
$2,000 tax credit for B.C. residents …...................................................................................
6
                    
• Provides a tax credit of up to $2,000 for owners who are B.C. residents on the first $400,000 
of their property value subject to the tax.
Income tax credit for non-B.C. residents who pay B.C. income tax …..............................
3
                    
• Provides a tax credit to reduce a non-B.C. resident's tax payable based on their B.C. income.
Exemptions for the following: 
Recently acquired or inherited property ...........................................................................
103
                
• Provides an exemption from tax for a property that is purchased or acquired in the calendar year.
Separation or divorce ..........................................................................................................
7
                    
• Provides an exemption from tax for owners who are going through a separation or divorce.
Death of an owner …............................................................................................................
32
                  
• Provides an exemption from tax for owners in the calendar year of an owner's death and the 
following year.
Hazardous or damaged residential property …................................................................
15
                  
• Provides an exemption from tax for property that is damaged by natural disaster or is uninhabitable.
Strata accommodation property ….....................................................................................
5
                    
• Provides an exemption from tax for property that is a strata hotel.
Daycares …...........................................................................................................................
5
                    
• Provides an exemption from tax for property that is used as a licensed daycare.
Residential care facility …...................................................................................................
3
                    
• Provides an exemption from tax when an owner moves from their principal residence to a residential 
care facility…........................................................................................................................
Person with disabilities
5
                    
• Provides an exemption from tax for property that is occupied as a principal residence by a person 
with a disability…....................................................................................................................
1
2
2024/25
Actual Cost
2025/26 
Estimated Cost1
Future costs for the first time home buyers’ program and newly built home exemption will vary depending on changes to the thresholds, completion and sale 
of new homes below the threshold value and by activity of first time buyers in the market. Other property transfer tax exemptions will be more stable over time.
Certain exemptions such as the principal residence exemption, occupied by a tenant exemption, and land under development exemption, are intended to 
exclude principal residences, rental properties, and properties under development from the tax base.
Costs are for the 2024 calendar year. In calculating the cost of the expenditure, no credits have been applied that an owner may have been entitled to receive 
had they been assessed tax. The calculations are based on actual exemptions claimed, not what an owner would have otherwise been entitled to claim had they
not chosen this particular exemption. Ownership percentage is assumed to be split into equal parts based on the number of owners on title (e.g., if a property 
has three owners, each owner is assumed to have 1/3 ownership), which may not reflect the true mixture of owner types who jointly own property. The tax rate 
of either 0.5 per cent or 2 per cent based on their ownership type is then applied to their ownership percentage. All measures were introduced when the tax was
introduced in 2018.

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| 145
APPENDIX
Table A1.4  Consumption Taxes – Tax Expenditures
($ millions)
($ millions)
($ millions)
Fuel Taxes 2
Exemption for alternative fuels 3 ..................................................................
4
                    
4
                    
4
                    
• Exempts hydrogen, natural gas, and gasoline and diesel that contain at least
85 per cent methanol from motor fuel tax.
• Introduced in 1982.
Exemption for international flights (jet fuel) ...............................................
15
                  
15
                  
15
                  
• Exempts fuel purchased by interjurisdictional airlines from motor fuel tax.
• Introduced in 2012.
Exemptions for farmers .................................................................................
20
                  
3
                    
3
                    
• Exempts coloured gasoline and coloured diesel purchased by qualifying farmers
from motor fuel and carbon tax (prior to April 1, 2025).
• Introduced in 1998 for motor fuel tax and 2014 for carbon tax.
Provincial Sales Tax 4
Exemptions for the following:
Food for human consumption ..................................................................
2,019
             
2,097
             
2,161
             
• Provides an exemption to reduce the cost of basic necessities.  
Production machinery and equipment .....................................................
389
                
375
                
383
                
• Provides an exemption to help reduce the cost of certain machinery and
equipment for businesses in the manufacturing, oil and gas, mining, and
logging industries.
Residential energy other than electricity (e.g., natural gas, fuel oil)  ...
120
                
116
                
110
                
• Provides an exemption to reduce the cost of residential energy.  
Residential electricity .................................................................................
171
                
184
                
187
                
• Provides an exemption to reduce the cost of residential electricity.  
Non-residential electricity..........................................................................
208
                
225
                
230
                
• Provides an exemption to help businesses become more competitive and 
support increased investment, growth, and job creation. Phased in starting
January 1, 2018 and fully implemented on April 1, 2019.
Prescription and non-prescription drugs, vitamins, and certain other 
health care products ..................................................................................
338
                
351
                
356
                
• Provides exemptions to reduce the cost of certain drugs, vitamins, and 
health care products.
Children's clothing and footwear .............................................................
48
                  
46
                  
44
                  
• Provides an exemption to reduce the cost of clothing and footwear for children
under 15.
Clothing patterns and fabrics ...................................................................
8
                    
8
                    
4
                    
• Provides an exemption to reduce the cost of patterns, yarns, natural fibres, 
threads, and fabric that are commonly used in making or repairing clothing.
• Budget 2026 repeals this exemption on October 1, 2026.
Specified school supplies .........................................................................
46
                  
49
                  
51
                  
• Provides an exemption to reduce the cost of school supplies.
Books, magazines, and newspapers ........................................................
56
                  
57
                  
59
                  
• Provides an exemption to reduce the cost of reading material.
Basic landline telephone and cable service ............................................
26
                  
23
                  
10
                  
• Provides exemptions to reduce the cost of basic landline telephone and  
basic cable television service.
• Budget 2026 repeals this exemption on October 1, 2026.
"1-800" and equivalent telephone services .............................................
2
                    
2
                    
1
                    
• Provides an exemption to reduce the cost of offering toll-free telephone
services.
• Budget 2026 repeals this exemption on October 1, 2026.
Specified safety equipment .......................................................................
70
                  
74
                  
76
                  
• Provides exemptions to reduce the cost of specified protective gear and
safety equipment.
1
2
3
4
2024/25 
Estimated Cost1
2025/26 
Estimated Cost
2026/27 
Planned Cost
Exemptions are largely point-of-sale exemptions and can only be estimated, unlike expenditures provided through the income or property tax systems.
Estimates are based on internal data, publicly available industry data, and Statistics Canada data. All exemptions for provincial sales tax existed prior to the 
implementation of the Provincial Sales Tax Act in 2013 unless otherwise noted.
Estimate is for both motor fuel tax and carbon tax.
Exemption for natural gas began in 1982. The exemption was expanded to include gasoline and diesel with at least 85 per cent methanol in 1992, hydrogen 
used in a fuel cell vehicle in 2009, and hydrogen used in an internal combustion engine vehicle in 2022.

--- page 156 ---
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BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A1.4  Consumption Taxes – Tax Expenditures (continued)
($ millions)
($ millions)
($ millions)
Provincial Sales Tax 2
Exemptions for the following:
Labour to repair major household appliances, clothing, and 
footwear .......................................................................................................
50
                  
53
                  
47
                  
• Provides exemptions to reduce the cost of repairing certain essentials.
Livestock for human consumption and feed, seed, and fertilizer .........
88
                  
90
                  
92
                  
• Provides exemptions to reduce the cost of animals that are part of the food system.
Specified energy conservation equipment ..............................................
59
                  
61
                  
62
                  
• Provides exemptions to reduce the cost of certain energy conservation equipment.
Bicycles and adult-sized tricycles ............................................................
39
                  
41
                  
42
                  
• Provides exemptions to reduce the cost of  bicycles, adult-sized tricycles, and
parts and services. 
Used zero-emission vehicles.....................................................................
42
                  
4
                    
-
                     
• Provided an exemption to reduce the cost of used zero-emission vehicles.
• Introduced in 2022. Repealed on May 1, 2025.
Heat pumps..................................................................................................
8
                    
8
                    
9
                    
• Provides an exemption to reduce the cost of heat pumps.
• Introduced in 2022.
1
2
($ millions)
($ millions)
($ millions)
Relief for small businesses, charities, and non-profits  ….............................
458
                
461
                
475
                
• Provides a tax exemption for employers with B.C. remuneration of $1,000,000 or less,
for 2024 onwards. Employers with remuneration above the exemption threshold of 
$1,000,000 and below $1,500,000 pay a lower effective rate. Employers with
remuneration above $1,500,000 pay the full rate.
• Charities and not-for-profit employers are exempt on their first $1,500,000 of B.C.
remuneration at a qualifying location, and receive a lower effective tax rate on B.C.
remuneration of up to $4,500,000 at a qualifying location.
• Introduced in 2019 with the employer health tax.
• Budget 2024  increased the exemption threshold from $500,000 to $1,000,000 for
remuneration paid on or after January 1, 2024.
($ millions)
($ millions)
($ millions)
Marine Insurance Exemption.........................................................
3
                    
3
                    
3
                    
• Provides an exemption for marine insurance other than pleasure craft insurance.
• Introduced in 1957.
2024/25 
Estimated Cost1
2025/26 
Estimated Cost
2026/27 
Planned Cost
2024/25
Actual Cost
2025/26 
Estimated Cost
2026/27 
Planned Cost
Table A1.5  Employer Health Tax – Tax Expenditures
Exemptions are largely point-of-sale exemptions and can only be estimated, unlike expenditures provided through the income or property tax systems.
Estimates are based on internal data, publicly available industry data, and Statistics Canada data. All exemptions for provincial sales tax existed prior to the 
implementation of the Provincial Sales Tax Act in 2013 unless otherwise noted.
Table A1.6  Insurance Premium Tax – Tax Expenditures
2024/25
Actual Cost
2025/26 
Estimated Cost
2026/27 
Planned Cost

--- page 157 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 147
APPENDIX
Table A2   Interprovincial Comparisons of Tax Rates – 2026
 (Rates known and in effect as of February 1, 2026)
Corporate income tax 
(per cent of taxable income)
General rate .......................
12
8
12
12
11.5
11.5
14
14
15
15
Manufacturing rate 1 ...........
12
8
10
12
10
11.5
14
14
15
15
Small business rate ...........
2
2
1
0
3.2
3.2
2.5
1.5
1
2.5
Small business threshold  
   ($000s) ............................
500
500
600
500
500
500
500
700
600
500
Corporation capital tax (per cent)
Financial 2 ..........................
1il
1il
0.7/4
6
1.25
1.25
4/5
4
5
6
Payroll tax (per cent) 3 ............
1.95
1il
1il
2.15
1.95
4.26
1il
1il
1il
2
Insurance premium tax
(per cent) 4 ...............................
2/7
3/4
3/4
2/4
2/3.5
3.3
2/3
3/4
3.75/4
5
Fuel tax (cents per litre) 5
Gasoline .............................
14.5
13
15
12.5
17.66
31.59
22.05
25.57
20.41
19.61
Diesel .................................
15
13
15
12.5
18.73
35.11
29.98
27.89
28.77
23.93
Sales tax (per cent) 6
General rate .......................
7
1il
6
7
8
9.975
10
9
10
10
Tobacco tax ($ per
carton of 200 cigarettes) 7 .......
77.38
60.00
68.19
72.03
48.85
41.80
67.32
74.42
77.18
82.68
1
2
3
4
5
6
7
Provinces with payroll taxes provide payroll tax relief for small businesses. Quebec levies a compensation tax of up to 2.8 per cent on salaries and 
wages paid by financial institutions, other than insurance corporations, which are taxed at a rate of 0.3 per cent.                   
Lower rates apply to premiums for life, sickness, and accident insurance; higher rates apply to premiums for property and other classes of insurance, 
including automobile insurance. In British Columbia, the highest rate applies to premiums paid to unlicensed insurers. Quebec's rate includes the 0.3 
per cent rate of compensation tax levied on insurance corporations. In Saskatchewan, Manitoba, Ontario, Quebec, and Newfoundland and Labrador, 
sales taxes also apply to certain insurance premiums except, generally, those related to individual life and health. 
Tax rates are for regular fuel used on highways and include all provincial taxes payable by consumers at the pump. The British Columbia rates include 
6.75 cents per litre dedicated to the BC Transportation Financing Authority. The British Columbia rates do not include regional taxes that increase the 
gasoline and diesel rates by 18.5 cents per litre in the South Coast British Columbia Transportation Authority service region and by 5.5 cents per litre in 
the Capital Regional District. The rates for Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador 
include provincial sales tax based on average pump prices as of January 2026. In Alberta, fuel tax rates, including gas and diesel, are adjusted 
quarterly based on an average West Texas Intermediate price within a given period. The temporary fuel tax reduction in Newfoundland and Labrador 
has been included and is in effect until March 31, 2026. Quebec's rates do not include increased or reduced regional tax rates, such as an additional 3 
cents per litre on gasoline in the Montreal area. 
Tax rates shown are statutory rates. Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador have 
harmonized their sales taxes with the federal GST. Alberta imposes a 4 per cent tax on short-term rental accommodation.
Includes estimated provincial sales tax / provincial portion of the harmonized sales tax in all provinces except Alberta and Quebec.
Saskatchewan provides a lower rate for small financial corporations, while Manitoba exempts small financial corporations from taxation. The tax in 
Ontario and Quebec only applies to life insurance companies. New Brunswick generally applies a 4 per cent tax on financial institutions, with a 5 per 
cent tax on banks specifically. Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador each provide 
capital tax deductions. 
In British Columbia (and some other provinces), the general rate applies to income from manufacturing and processing.                           
British 
Columbia
Alberta
Saskat-
chewan
Manitoba
Ontario
Quebec
New 
Brunswick
Nova 
Scotia
Prince 
Edward 
Island
Newfound-
land and 
Labrador
Tax

--- page 158 ---
APPENDIX
148 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A3   Comparison of Provincial and Federal Taxes by Province – 2026
Two Income Family of Four – $150,000
$
1. Provincial Income Tax…………………
6,198
6,722
7,872
10,805
7,410
11,924
10,295
13,581
11,863
11,468
Net Child Benefits………………………
-
                         
-
            
-
            
-
            
-
           
(2,611)
    
-
            
-
            
-
            
-
            
2. Sales Tax………………………………
1,989
-
            
2,744
2,957
3,664
4,614
5,431
4,392
5,623
4,331
3. Fuel Tax…………………………………
380
320
578
410
448
425
549
544
317
585
4. Total Provincial Tax……………………
8,567
7,042
11,194
14,172
11,522
14,352
16,275
18,517
17,803
16,384
5. Federal Income Tax……………………
13,846
13,846
13,846
13,846
13,846
13,846
13,846
13,846
13,846
13,846
6. Net Federal GST………………………
2,011
2,109
2,348
2,507
1,991
1,918
2,423
2,311
2,453
2,145
7. Total Tax…………………………………
24,423
22,996
27,388
30,524
27,358
30,116
32,544
34,673
34,102
32,375
Two Income Family of Four – $100,000
1. Provincial Income Tax…………………
2,891
2,984
3,062
5,365
2,937
5,733
5,172
6,852
5,748
5,768
Net Child Benefits………………………
(1,304)
                
-
            
-
            
-
            
-
           
(4,611)
    
-
            
-
            
-
            
-
            
2. Sales Tax………………………………
1,387
-
            
1,940
2,084
2,583
3,271
3,818
3,116
3,983
3,055
3. Fuel Tax…………………………………
265
224
408
289
316
301
386
386
224
413
4. Total Provincial Tax……………………
3,239
3,208
5,410
7,738
5,836
4,694
9,376
10,353
9,955
9,236
5. Federal Income Tax……………………
6,570
6,570
6,570
6,570
6,570
6,570
6,570
6,570
6,570
6,570
6. Net Federal GST………………………
1,402
1,476
1,660
1,767
1,404
1,360
1,704
1,639
1,737
1,513
7. Total Tax…………………………………
11,212
11,254
13,640
16,075
13,810
12,624
17,650
18,563
18,263
17,319
Single Parent with One Child – $70,000
1. Provincial Income Tax…………………
2,391
1,363
2,376
4,310
2,354
6,210
3,717
5,513
4,334
4,802
Net Child Benefits………………………
(775)
                   
-
            
-
            
-
            
-
           
(3,146)
    
-
            
-
            
-
            
-
            
2. Sales Tax………………………………
1,908
-
            
1,781
1,973
2,599
3,093
3,327
3,601
5,057
3,129
3. Fuel Tax…………………………………
223
225
        
455
        
207
        
257
      
228
        
344
        
484
        
283
        
456
        
4. Total Provincial Tax……………………
3,746
1,589
4,612
6,491
5,209
6,385
7,389
9,598
9,674
8,387
5. Federal Income Tax……………………
4,257
4,257
4,257
4,257
4,257
4,257
4,257
4,257
4,257
4,257
6. Net Federal GST………………………
1,874
2,176
1,552
1,814
1,498
1,402
1,464
1,785
1,946
1,543
7. Total Tax…………………………………
9,878
8,022
10,422
12,563
10,964
12,044
13,110
15,640
15,877
14,187
Unattached Individual – $40,000
1. Provincial Income Tax…………………
1,152
1,153
     
1,675
2,311
1,153
1,970
1,931
2,751
2,276
2,261
2. Sales Tax………………………………
847
-
            
985
1,071
1,361
1,557
1,599
1,631
1,893
1,129
3. Fuel Tax…………………………………
90
                      
72
          
113
        
76
          
77
        
116
        
143
118
67
106
4. Total Provincial Tax……………………
2,090
1,225
     
2,773
3,458
2,592
3,643
3,674
4,500
4,237
3,496
5. Federal Income Tax……………………
2,691
2,691
2,691
2,691
2,691
2,691
2,691
2,691
2,691
2,691
6. Net Federal GST………………………
270
                     
191
        
241
        
365
        
286
      
160
        
299
        
289
        
294
        
260
        
7. Total Tax…………………………………
5,050
4,107
5,705
6,514
5,569
6,494
6,664
7,481
7,222
6,447
New-
foundland 
and 
Labrador
Tax
British Columbia
Alberta
Saskat-
chewan
Manitoba
Ontario
Quebec
New 
Brunswick
Nova 
Scotia
Prince 
Edward 
Island

--- page 159 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 149
APPENDIX
Table A3   Comparison of Provincial and Federal Taxes by Province – 2026 (continued)
Unattached Individual – $100,000
$
1. Provincial Income Tax…………………
4,786
                  
5,470
     
7,372
     
8,209
     
5,782
   
9,406
     
8,218
     
10,383
   
9,347
     
8,918
     
2. Sales Tax………………………………
1,707
                  
-
            
1,939
     
2,123
     
2,704
   
2,999
     
3,526
     
3,168
     
3,996
     
3,135
     
3. Fuel Tax…………………………………
181
                     
144
        
223
        
150
        
153
      
224
        
281
        
229
        
130
        
208
        
4. Total Provincial Tax……………………
6,674
                  
5,614
     
9,535
     
10,482
   
8,639
   
12,629
   
12,024
   
13,780
   
13,473
   
12,261
   
5. Federal Income Tax……………………
11,252
                
11,252
   
11,252
   
11,252
   
11,252
 
11,252
   
11,252
   
11,252
   
11,252
   
11,252
   
6. Net Federal GST………………………
1,603
                  
1,430
     
1,510
     
1,766
     
1,613
   
1,321
     
1,617
     
1,584
     
1,596
     
1,539
     
7. Total Tax…………………………………
19,528
                
18,295
   
22,296
   
23,499
   
21,503
 
25,201
   
24,892
   
26,615
   
26,320
   
25,051
   
Senior Couple with Equal Pension Incomes – $60,000
1. Provincial Income Tax…………………
-
                         
-
            
-
            
1,574
     
1,071
   
701
        
1,038
     
1,523
     
1,252
     
1,700
     
2. Sales Tax………………………………
1,401
                  
-
            
1,591
     
1,584
     
2,125
   
3,003
     
2,893
     
2,714
     
3,099
     
3,207
     
3. Fuel Tax…………………………………
267
                     
172
        
336
        
205
        
233
      
276
        
356
        
342
        
223
        
513
        
4. Total Provincial Tax……………………
1,668
                  
172
        
1,927
     
3,363
     
3,429
   
3,981
     
4,287
     
4,579
     
4,575
     
5,421
     
5. Federal Income Tax……………………
404
                     
404
        
404
        
404
        
404
      
404
        
404
        
404
        
404
        
404
        
6. Net Federal GST………………………
1,315
                  
1,287
     
1,236
     
1,220
     
1,016
   
1,135
     
1,328
     
1,307
     
1,230
     
1,454
     
7. Total Tax…………………………………
3,386
                  
1,863
     
3,566
     
4,986
     
4,849
   
5,519
     
6,018
     
6,290
     
6,209
     
7,278
     
Personal Income Tax
•
•
Net Child Benefits
•
•
Sales and Fuel Taxes
•
Effective Tax Rates
•
New-
foundland 
and 
Labrador
Estimates are based on expenditure patterns from the Statistics Canada's Social Policy Simulation Database and Model (SPSD/M) version 30.3. In estimating individual and
family taxable consumption, disposable income is reduced by estimated federal income taxes and provincial income taxes. In addition, the family at $150,000 income, the 
family at $100,000 income, and the individual at $100,000 income are assumed to have savings equal to 10 per cent of their income. The single parent at $70,000 income and 
the individual at $40,000 income are assumed to have savings equal to 5 per cent of their income. For each family, disposable income is distributed among expenditures using 
the consumption pattern of a typical family with the relevant characteristics as estimated using expenditure data, and the relevant sales tax component is extracted. Sales tax 
includes: provincial retail sales taxes in British Columbia, Saskatchewan, and Manitoba; Quebec's value added tax; the provincial component of the HST in Ontario, New 
Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador; and Alberta's Tourism Levy. Sales tax estimates have been reduced by sales tax credits 
where applicable.                                                                                                                 
British Columbia taxes have been calculated using rates in effect for 2026. Taxes for other provinces were calculated using rates that were announced prior to February 1, 
2026, and that come into effect during 2026.                                                                                                                                                                    
Income tax is based on basic personal credits, applicable credits, and typical major deductions at each income level. Quebec residents pay federal income tax less an 
abatement of 16.5 per cent of basic federal tax. This abatement has been used to reduce Quebec provincial tax rather than federal tax, for comparative purposes.                      
The amount noted for each family is their family total income. Total income is used for these tables as it provides a more accurate view of the taxes paid by a family at a 
particular level of earnings. The two-income family of four with $150,000 income is assumed to have one adult earning $90,000 and the other $60,000. The family with 
$100,000 income is assumed to have one adult earning $60,000 and the other $40,000. Each adult in the senior couple is assumed to receive $30,000. The senior couple is 
assumed to have pension income, and the remaining representative families are assumed to have employment income.                                                                                        
Net child benefits are provincial measures affecting payments to families with children. Provincial child benefit measures are available in British Columbia (BC Family Benefit), 
Alberta (Alberta Child and Family Benefit), Ontario (Child Benefit), Quebec (Child Assistance Payments), New Brunswick (Child Tax Benefit), Nova Scotia (Child Benefit), and 
Newfoundland and Labrador (Child Benefit).                                                                                                                          
The single parent is assumed to have one child aged 5. The family earning $100,000 income is assumed to have two children aged 5 and 7. The family earning $150,000 
income is assumed to have two children aged 15 and 17.                                               
British Columbia
Alberta
Saskat-
chewan
Manitoba
Ontario
Quebec
New 
Brunswick
Nova 
Scotia
Prince 
Edward 
Island
Tax

--- page 160 ---
APPENDIX
150 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Detached House
Condo 
Townhouse 
Municipality
             $
Vancouver

                            

                 

                        
1et

                            

                 

                        
Surrey

                            

                 

                        
1et

                            

                 

                        
Saanich

                            

                 

                        
1et

                            

                 

                        
Kelowna

                            

                 

                        
1et

                            

                 

                        
Prince George

                            

                 

                        
1et

                            

                    

                        
Cranbrook

                            

                 

                        
1et

                            

                    

                        
Powell River

                            

                 

                        
1et

                            

                 

                        
Williams Lake

                            

                 

                        
1et

                            

                    

                        
Kamloops

                            

                 

                        
1et

                            

                 

                        
Prince Rupert

                            

                 

                        
1et

                            

                    

                           
Penticton

                            

                 

                        
1et

                            

                 

                        
Mission

                            

                 

                        
1et

                            

                 

                        
Pitt Meadows

                            

                 

                        
1et

                            

                 

                        
Salmon Arm

                            

                 

                        
1et

                            

                    

                        
Fort St. John

                            

                 

                        
1et

                            

                    

                        
Nelson

                            

                 

                        
1et

                            

                 

                        
Gibsons

                            

                 

                        
1et

                            

                 

                        
Smithers

                            

                 

                        
1et

                            

                 

                        
Tofino

                            

                 

                        
1et

                            

                 

                        
Qualicum Beach

                            

                 

                        
1et

                            

                 

                        
Table A3.1   Comparison of Property Taxes – 2025
7a[ rates anG meGian assesseG Yalues for eacK SroSerty tySe in  Zere useG for tKe calculation. 3roSerty ta[ rates are 
inclusiYe of municiSal SroYincial anG all otKer ta[inJ autKorities. 3roSerty ta[es for eacK SroSerty tySe incluGe total SroSerty 
ta[es anG amounts net of tKe Kome oZner Jrant. 7Ke amount of tKe Kome oZner Jrant is eitKer  or  GeSenGinJ on 
tKe location. MuniciSalities Zere selecteG to reSresent a ranJe of SoSulation si]es anG JeoJraSKic locations in tKe SroYince.

--- page 161 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 151
APPENDIX
Table A4   Interprovincial Comparisons of Provincial Personal Income Taxes Payable 1 – 2026
 (Rates known as of February 1, 2026)
Annual provincial taxes payable 3 ($)
$10,000………………
0
0
0
0
0
0
0
0
0
0
$20,000………………
0
0
0
284
0
0
0
536
1
0
$30,000………………
282
413
639
1,313
300
795
766
1,407
1,229
1,443
$40,000………………
1,152
1,153
1,675
2,311
1,153
1,970
1,931
2,751
2,333
2,261
$50,000………………
1,859
1,892
2,827
3,358
2,265
3,275
3,079
4,173
3,604
3,347
$60,000………………
2,567
2,631
3,896
4,550
2,982
4,798
4,274
5,596
4,875
4,725
$70,000………………
3,294
3,535
5,066
5,743
3,856
6,362
5,600
7,146
6,258
6,105
$80,000………………
4,031
4,490
6,259
6,960
4,885
7,885
6,942
8,749
7,853
7,497
$100,000……………
5,556
6,470
8,734
9,484
6,723
10,980
9,714
12,062
11,140
10,492
$125,000……………
8,276
8,970
11,859
13,782
10,256
15,509
13,598
16,437
15,482
14,442
$150,000……………
11,552
11,470
14,984
18,132
14,608
20,702
17,598
20,812
20,010
18,392
Provincial personal income taxes as a per cent of taxable income (%)
$10,000………………
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
$20,000………………
0.0
0.0
0.0
1.4
0.0
0.0
0.0
2.7
0.0
0.0
$30,000………………
0.9
1.4
2.1
4.4
1.0
2.7
2.6
4.7
4.1
4.8
$40,000………………
2.9
2.9
4.2
5.8
2.9
4.9
4.8
6.9
5.7
5.7
$50,000………………
3.7
3.8
5.7
6.7
4.5
6.6
6.2
8.3
7.1
6.7
$60,000………………
4.3
4.4
6.3
7.6
5.0
8.0
7.0
9.3
8.0
7.9
$70,000………………
4.7
5.0
7.1
8.2
5.5
9.1
7.9
10.2
8.8
8.7
$80,000………………
5.0
5.6
7.7
8.7
6.1
9.8
8.6
10.9
9.7
9.4
$100,000……………
5.6
6.5
8.6
9.5
6.7
11.0
9.6
12.1
11.0
10.5
$125,000……………
6.6
7.2
9.4
11.0
8.2
12.4
10.7
13.1
12.2
11.6
$150,000……………
7.7
7.6
9.9
12.1
9.7
13.8
11.6
13.9
13.1
12.3
1
2
3
Quebec residents pay federal tax less an abatement of 16.5 per cent of federal tax. In the table, the Quebec abatement has been 
used to reduce Quebec provincial personal income tax for comparative purposes.      
Includes provincial low-income reductions, surtaxes payable in Ontario and Prince Edward Island, and the Ontario Health Premium 
tax. Excludes sales tax credits and property tax credits.
New 
Brunswick
Nova 
Scotia
Prince 
Edward 
Island
New-
foundland 
and 
Labrador
Taxable income 
Calculated for a single individual with wage income, and claiming credits for Canada Pension Plan and Quebec Pension Plan 
contributions, Employment Insurance premiums, Quebec Parental Insurance Plan premiums, and the basic personal amount.
British 
Columbia
Alberta
Saskat-
chewan
Manitoba
Ontario
Quebec2

--- page 162 ---
This page
intentionally left blank.

--- page 163 ---
	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29	
|  153 
APPENDIX
Table A5 Material Assumptions – Revenue
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
2026/27 Sensitivities
Personal income tax *
19,186
     
19,492
     
20,704
    
22,004
    
Current calendar year assumptions
Household income growth ...................................................
3.4%
3.4%
3.8%
4.2%
Employee compensation growth .........................................
2.6%
3.3%
3.3%
3.9%
Tax base growth ..................................................................
2.2%
3.2%
3.8%
4.0%
Average tax yield .................................................................
6.59%
6.82%
6.97%
7.13%
Current-year tax ..................................................................
17,651
     
18,873
     
20,015
    
21,278
    
Prior year's tax assessments  .............................................
600
          
650
          
700
         
720
         
Unapplied taxes ...................................................................
150
          
150
          
150
         
150
         
B.C. Tax Reduction .............................................................
(199)
        
(326)
        
(329)
        
(332)
        
Non-refundable B.C. tax credits ..........................................
(161)
        
(161)
        
(161)
        
(161)
        
Policy neutral elasticity ** ....................................................
1.2
           
1.2
           
1.2
          
1.2
          
Fiscal year assumptions
Prior-year adjustment ..........................................................
853
          
2024 Tax-year
Household income growth ...................................................
7.3%
 
 
 
Tax base growth ..................................................................
7.3%
 
 
 
Average 2024 tax yield ........................................................
6.51%
 
 
 
2024 tax ...............................................................................
17,057
     
 
 
2023 & prior year's tax assessments ..................................
712
          
 
 
 
Unapplied taxes ...................................................................
150
          
 
 
 
B.C. Tax Reduction .............................................................
(195)
        
 
 
 
Non-refundable B.C. tax credits ..........................................
(137)
        
 
 
 
Policy neutral elasticity **.....................................................
1.6
           
 
 
 
*  Reflects information as at January 28, 2026
**  Per cent growth in current year tax revenue (excluding policy measures) relative to per cent growth in household income (calendar year).
Corporate income tax *
7,957
       
7,645
       
8,158
      
8,162
      
Components of revenue (fiscal year)
Installments – subject to general rate …………………………
7,004
       
7,476
       
7,791
      
7,798
      
Installments – subject to small business rate ………………
349
          
372
          
388
         
388
         
Non-refundable B.C. tax credits ..........................................
(132)
        
(149)
        
(154)
        
(159)
        
Advance installments ..........................................................
7,221
       
7,699
       
8,025
      
8,027
      
Prior-year settlement payment ............................................
736
          
(54)
          
133
         
135
         
Current calendar year assumptions
National tax base ($ billions) ...............................................
591.7
       
617.6
       
641.0
      
663.1
      
B.C. installment share of national tax base .........................
12.9%
12.9%
13.0%
12.7%
Effective percentage tax rates
     (% general/small business) ............................................ 12.0 / 2.0
12.0 / 2.0
12.0 / 2.0
12.0 / 2.0
Share of the B.C. tax base subject to the
  small business rate ……………………………….……………
23.0%
23.0%
23.0%
23.0%
B.C. tax base growth (post federal measures) ....................
-0.7%
4.5%
1.7%
3.7%
B.C. net operating surplus growth .......................................
8.1%
9.6%
4.6%
3.4%
2024 Tax-year
 
B.C. tax base growth (post federal measures) ....................
3.3%
 
 
 
Share of the B.C. tax base subject to
  small business rate ……………………………….……………
23.0%
B.C. net operating surplus growth .......................................
-19.3%
 
 
 
Gross 2024 tax ....................................................................
7,534
       
 
 
Prior-year settlement payment ............................................
736
          
 
 
 
Prior years losses/gains (included in above) .......................
63
            
 
 
Non-refundable B.C. tax credits ..........................................
(141)
        
 
 
*  Reflects information as at January 28, 2026
Cash received from the federal government is used as the basis for estimating revenue. Due to lags in the federal collection and installment systems, 
changes to the B.C. net operating surplus and tax base forecasts affect revenue in the succeeding year. The 2026/27 installments from the federal 
government reflects two-third of payments related to the 2026 tax year (paid during Apr-July and adjusted in Sept and Dec 2026) and one-third of 2027 payments.
Installments for the 2026 (2027) tax year are based on B.C.'s share of the national tax base for the 2025 (2026) tax year and a forecast of the 
2026 (2027) national tax base. B.C.'s share of the 2024 national tax base was 13.07%, based on tax assessments as of December 31, 2025. 
Cash adjustments for any under/over payments from the federal government in respect of 2025 will be received/paid on March 31, 2027.
+/- 1 percentage point change in 2026 B.C. 
household income growth equals +/- $200 to 
$240 million in revenue
+/- 1 percentage point change in 2025 B.C. 
household or taxable income growth equals 
+/- $200 to $240 million one-time effect (prior-
year adjustment) and could result in an additional 
+/- $180 to $200 million base change in 2026/27
+/- 1% change in the 2025 B.C. tax base equals 
+/- $70 to $80 million one-time effect (prior-year 
adjustment) and could result in an additional 
installments payments of +/- $100 to $120 million 
in 2026/27
Revenue Source and Assumptions
($ millions unless otherwise specified)
+/- 0.5 change in 2026 B.C. policy neutral 
elasticity equals +/- $300 to $350 million
+/- 1% change in the 2026 national tax base 
equals +/- $80 to $100 million
Plan 
2028/29
Plan 
2027/28
2024 Assumptions
2024 Assumptions
+/- 1 percentage point change in the 2026 small 
business share equals -/+ $70 to $90 million 

--- page 164 ---
APPENDIX
154  |	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A5 Material Assumptions – Revenue (continued)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
2026/27 Sensitivities
Employer health tax
3,075
       
3,167
       
3,264
      
3,382
      
Employee compensation growth ………………………………
2.6%
3.3%
3.3%
3.9%
Provincial sales tax
10,687
     
11,436
     
12,120
    
12,545
    
Provincial sales tax base growth (fiscal year) …………………
3.2%
3.9%
3.5%
3.5% +/- 1 percentage point change in the
Calendar Year nominal expenditure
2026 consumer expenditure growth 
Consumer expenditures on durable goods …………………
10.9%
3.0%
2.8%
3.5% equals up to +/- $30 to $40 million
Consumer expenditures on goods and services .................
5.0%
3.6%
4.2%
4.6%
Business investment ……………………………………………
3.4%
4.1%
3.2%
2.1%
Other ……………………………………………………………
5.4%
6.7%
5.0%
4.1%
Components of Provincial sales tax revenue
+/- 1 percentage point change in the
Consolidated Revenue Fund ...............................................
10,679
     
11,427
     
12,111
    
12,536
    
2026 business investment growth
BC Transportation Financing Authority ...............................
8
              
9
              
9
             
9
             
equals up to +/- $10 to $20 million
Fuel and carbon taxes
1,276
       
1,373
       
1,440
      
1,509
      
Calendar Year
Real GDP ............................................................................
1.5%
1.3%
1.8%
1.9%
Gasoline volumes ................................................................
4.3%
2.0%
1.0%
1.0%
Diesel volumes ....................................................................
6.0%
3.0%
2.0%
2.0%
Components of revenue *
Consolidated Revenue Fund ...............................................
546
          
561
          
569
         
577
         
BC Transit ...........................................................................
18
            
18
            
19
           
19
           
BC Transportation Financing Authority ...............................
450
          
460
          
466
         
473
         
Fuel tax revenue …………………………………………………
1,014
       
1,039
       
1,054
      
1,069
      
Output-based pricing system revenue *………………………
262
          
334
          
386
         
440
         
 * The consumer carbon tax was eliminated effective April 1, 2025 and forecast now includes Output-based pricing system revenue 
paid by large industrial emitters.
Property taxes
4,067
       
4,451
       
4,979
      
5,330
      
Calendar Year
Consumer Price Index .........................................................
2.1%
2.1%
2.0%
2.0%
Nominal GDP ......................................................................
4.1%
4.4%
4.1%
4.2%
Housing starts (units) ..........................................................
44,193
     
44,210
     
45,920
    
47,497
    
Home owner grants (fiscal year) .........................................
931
          
925
          
871
         
891
         
Components of revenue
Residential (net of home owner grants) ..............................
1,703
       
1,894
       
2,240
      
2,429
      
Speculation and vacancy   ..................................................
105
          
161
          
184
         
184
         
Non-residential ....................................................................
1,760
       
1,865
       
1,990
      
2,122
      
 +/- 1% change in 2026 total 
Rural area ............................................................................
169
          
175
          
187
         
198
         
business property assessment 
Police ...................................................................................
44
            
46
            
49
           
51
           
value equals up to  +/- $30 million
BC Assessment Authority ....................................................
125
          
128
          
129
         
130
         
in non-residential property
BC Transit ...........................................................................
161
          
182
          
200
         
216
         
taxation revenue
Other taxes
2,976
       
3,211
       
3,373
      
3,545
      
Calendar Year
Population ...........................................................................
0.5%
-0.9%
0.4%
1.0%
Residential sales value ........................................................
-8.4%
13.1%
7.6%
6.5%
Real GDP ............................................................................
1.5%
1.3%
1.8%
1.9%
Nominal GDP ......................................................................
4.1%
4.4%
4.1%
4.2%
Components of revenue
 +/- 1% change to 2026 residential
Property transfer ..................................................................
1,750
       
1,935
       
2,077
      
2,229
      
sales value equals +/- $20 million
Additional Property Transfer Tax  (included in above) ........
30
            
30
            
30
           
30
           
in property transfer revenue,
Tobacco ...............................................................................
291
          
311
          
311
         
311
         
depending on property values
Insurance premium .............................................................
930
          
960
          
980
         
1,000
      
Tax targeting home flipping activity .....................................
5
              
5
              
5
             
5
             
 +/- 1 percentage point change in 2026 new 
construction or nominal GDP  growth equals up to 
+/- $30 million in residential property taxation 
revenue
+/- 1 percentage point change in the 2026 
employee compensation growth equals up to +/- 
$30 million
Revenue Source and Assumptions
($ millions unless otherwise specified)

--- page 165 ---
	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29	
|  155 
APPENDIX
Table A5 Material Assumptions – Revenue (continued)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
2026/27 Sensitivities
Energy, sales of Crown land tenures,
metals, minerals and other *
1,561
       
1,926
       
2,044
      
2,347
      
Natural gas price  
+/- $0.25 change in the natural gas
Plant inlet, $C/gigajoule ………………………………………
1.12
         
2.18
         
2.39
        
2.48
        
price equals +/-  $150 to $250 million, including  
Plant outlet, $C/gigajoule ………………………………………
1.91
         
2.99
         
3.21
        
3.30
        
impacts on production volumes and royalty
Sumas, $US/MMBtu ……………………………………………
2.10
         
3.01
         
3.20
        
3.28
        
program credits, but excluding any changes
Natural gas production volumes 
from natural gas liquids revenue 
Billions of cubic metres ........................................................
77.5
         
78.7
         
82.9
        
84.7
        
(e.g. butane, pentanes)
Petajoules ............................................................................
3,219
       
3,272
       
3,442
      
3,518
      
Annual per cent change ………………………………………
4.7%
1.6%
5.2%
2.2%
Sensitivities can vary significantly at 
Oil price ($US/bbl at Cushing, OK) ……………………………
61.91
       
60.76
       
65.67
      
70.27
      
different price levels
Auctioned land base (000 hectares) ……………………………
10
            
10
            
10
           
10
           
+/- 1% change in natural gas volumes equals
Average bid price/hectare ($) …………………………………
3,200
       
200
          
200
         
200
         
+/- $15 million in natural gas royalties
Metallurgical coal price ($US/tonne, fob Australia) …………
189
          
198
          
205
         
209
         
Copper price ($US/lb) ...........................................................
4.70
         
4.97
         
4.96
        
5.03
        
Annual electricity volumes set by treaty ………………………
2.7
           
2.7
           
2.7
          
2.7
          
 (million mega-watt hours)
Mid-Columbia electricity price …………………………………
60.00
       
60.34
       
58.32
      
62.46
      
+/- $10/bbl change in petroleum price 
($US/mega-watt hour)
equals +/- $6 million in petroleum royalties 
Exchange rate (US¢/C$, calendar year) ………………………
71.5
         
73.6
         
75.6
        
77.0
        
+/- 16% change in natural gas liquids
(equivalent to +/- $10/bbl oil price) prices 
Components of revenue 
equals +/- $140 to $190 million in natural gas
Bonus bid cash sales …...................................................
32
            
2
              
2
             
2
             
liquids royalties
Fees and rentals ………..…….…..…………………………
36
            
36
            
36
           
34
           
Total bonus bids, fees and rentals ……………………………
68
            
38
            
38
           
36
           
Natural gas royalties after deductions and allowances …....
942
          
1,297
       
1,305
      
1,572
      
Petroleum royalties ……………………………………………
46
            
42
            
56
           
63
           
Columbia River Treaty electricity sales ………………………
275
          
271
          
259
         
271
         
+/- US$20 change in the average
BC Energy Regulator fees and levies …………………………
86
            
87
            
89
           
91
           
metallurgical coal price
Coal, metals and other minerals revenue:
equals +/- $50 to $90 million
   Coal tenures ..………..………………………………………
8
              
8
              
8
             
8
             
   Net coal mineral tax …………….……...……………………
7
              
26
            
57
           
67
           
   Net metals and other minerals tax …….…..………………
46
            
63
            
139
         
137
         
   Revenue sharing payments to First Nations ………………
58
            
69
            
68
           
77
           
   Other recoveries …………………………….......................
7
              
7
              
7
             
7
             
   Miscellaneous mining revenue ………………………………
18
            
18
            
18
           
18
           
Total coal, metals and other minerals revenue ………………
144
          
191
          
297
         
314
         
Gross royalties prior to deductions and allowances
Gross natural gas revenue ……………………………………
585
          
892
          
877
         
1,067
      
Gross natural gas liquids royalties revenue ….....................
592
          
695
          
824
         
945
         
Royalty programs and infrastructure credits
Deep drilling ……………………………………………………
(77)
          
(47)
          
-
          
-
          
Road, pipeline, Clean Growth Infrastructure Royalty
   and other infrastructure programs…………….......…………
(52)
          
(67)
          
(82)
          
(62)
          
Total ………………………………………………………………
(129)
        
(114)
        
(82)
          
(62)
          
Implicit average natural gas royalty rate ………………………
25.6%
16.6%
11.8%
13.5%
Natural gas royalties incorporate royalty programs and Treasury Board approved infrastructure credits.
* Reflects information as at January 23, 2026
+/- 10% change in the average Mid-Columbia 
electricity price equals +/- $20 million
Revenue Source and Assumptions
($ millions unless otherwise specified)
 +/- 1 cent change in the exchange rate equals  +/-
$30 million in natural gas royalties
In accordance with accounting standards, bonus 
bid revenue is recognized in full at the time an 
authorization for the sale of Crown land tenure is 
awarded.

--- page 166 ---
APPENDIX
156  |	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A5 Material Assumptions – Revenue (continued)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
2026/27 Sensitivities
Forests *
505
          
521
          
518
         
556
         
Prices (calendar year average)
SPF 2x4 ($US/thousand board feet) …………………………
467
          
470
          
490
         
495
         
Crown harvest volumes (million cubic metres)
Interior ……………………………………………………………
21.8
         
21.7
         
22.1
        
22.1
        
Coast ……………………………………………………………
7.2
           
7.3
           
6.9
          
6.9
          
Total ………………………………………………………………
29.0
         
29.0
         
29.0
        
29.0
        
B.C. Timber Sales (included in above) ………………………
4.1
           
5.3
           
5.3
          
5.6
          
Stumpage rates ($Cdn/cubic metre)
Total stumpage rates ……………………………………………
14.94
15.24
15.14
16.44
Components of revenue
Timber tenures (net of revenue sharing recoveries)…………
116
          
122
          
143
         
165
         
Revenue sharing payments to First Nations …………………
122
          
63
            
55
           
53
           
B.C. Timber Sales ………………………………………………
212
          
276
          
260
         
277
         
The above sensitivities relate
Logging tax ………………………………………………………
10
            
15
            
15
           
15
           
to stumpage revenue only.
Other CRF revenue ……………………………………………
31
            
31
            
31
           
31
           
Other recoveries …………………………………………………
14
            
14
            
14
           
15
           
* Reflects information as at January 23, 2026
Other natural resources
489
          
564
          
615
         
646
         
Components of revenue
Water rental and licences* ……………………………………
419
          
494
          
555
         
600
         
Recoveries ………………………………………………………
50
            
50
            
40
           
26
           
Angling and hunting permits and licences ……………………
10
            
10
            
10
           
10
           
Recoveries ………………………………………………………
10
            
10
            
10
           
10
           
* Water rentals for power purposes are indexed to Consumer Price Index.
Total natural resource recoveries relating to 
  revenue sharing payments to First Nations 
304
          
132
          
123
         
130
         
  for signed agreements
Other revenue
14,778
     
12,449
     
12,435
    
12,568
    
Components of revenue
Fees and licences
    Motor vehicle licences and permits …………………………
654
          
664
          
675
         
687
         
International student health fees .....................................
100
          
80
            
80
           
80
           
    Other Consolidated Revenue Fund .................................
505
          
518
          
516
         
522
         
Summary consolidation eliminations ...............................
(14)
          
(15)
          
(15)
          
(15)
          
    Ministry vote recoveries ...................................................
202
          
239
          
261
         
162
         
Taxpayer-supported Crown corporations ........................
245
          
242
          
252
         
254
         
Post-secondary education fees ……………………………
2,691
       
2,578
       
2,598
      
2,658
      
Other healthcare-related fees ………………………………
642
          
651
          
660
         
661
         
School Districts ................................................................
273
          
285
          
296
         
308
         
Investment earnings
Consolidated Revenue Fund ...........................................
240
          
298
          
300
         
299
         
Fiscal agency loans & sinking funds earnings .................
1,155
       
1,331
       
1,469
      
1,582
      
Summary consolidation eliminations ...............................
(58)
          
(45)
          
(46)
          
(36)
          
Taxpayer-supported Crown corporations ........................
82
            
41
            
42
           
43
           
SUCH sector agencies ....................................................
404
          
375
          
368
         
367
         
Sales of goods and services 
SUCH sector agencies ....................................................
1,171
       
1,205
       
1,238
      
1,268
      
BC Infrastructure Benefits Inc …......................................
329
          
183
          
38
           
9
             
Other taxpayer-supported Crown corporations ...............
145
          
318
          
312
         
331
         
Miscellaneous ......................................................................
6,012
       
3,501
       
3,391
      
3,388
      
+/- 5% change in water power production 
equals +/- $15 to $20 million
+/- US$50 change in SPF price equals +/- $40 to 
$60 million
+/- 10% change in Interior harvest volumes 
equals +/- $30 to $40 million
+/- 10% change in Coastal harvest volumes 
equals +/- $10 to $15 million
Revenue sharing from natural gas royalties, 
mineral tax, electricity sales under the Columbia 
River Treaty and forest stumpage revenues.
 +/- 1 cent change in exchange rate 
equals  +/- $10 to $15 million in stumpage 
revenue
Revenue Source and Assumptions
($ millions unless otherwise specified)
Plan 
2028/29
Plan 
2027/28

--- page 167 ---
	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29	
|  157 
APPENDIX
Table A5 Material Assumptions – Revenue (continued)
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
2026/27 Sensitivities
Health and social transfers
9,822
       
10,309
     
10,764
    
11,161
    
National Cash Transfers
   Canada Health Transfer (CHT) ........................................
54,685
     
57,419
     
60,290
    
62,514
    
   Annual growth ...............................................................
5.0%
5.0%
5.0%
3.7%
   Canada Social Transfer (CST) .........................................
17,416
     
17,939
     
18,477
    
19,031
    
B.C.'s share of national population (July 1) ………………...
13.68%
13.68%
13.67%
13.69%
B.C. health and social transfers revenue
   CHT ..................................................................................
7,480
       
7,855
       
8,239
      
8,556
      
   CST ..................................................................................
2,382
       
2,454
       
2,525
      
2,605
      
  Prior-year adjustments:
 
 
 
 
 
   CHT ..................................................................................
(30)
          
   CST ..................................................................................
(10)
          
Other federal contributions
4,788
       
5,159
       
4,339
      
4,174
      
Components of revenue
Disaster Financial Assistance Arrangements…………………
434
          
520
          
207
         
357
         
B.C.'s share of the federal cannabis excise tax………....……
128
          
130
          
130
         
130
         
Other Consolidated Revenue Fund .....................................
95
            
99
            
99
           
99
           
Vote Recoveries:
    Labour Market Development Agreement ........................
296
          
291
          
291
         
291
         
    Labour Market and Skills Training Program ....................
98
            
98
            
98
           
98
           
    Working Together To Improve Healthcare …..................
408
          
407
          
325
         
325
         
    Aging With Dignity ……………………………………………
235
          
240
          
158
         
49
           
    Drugs For Rare Diseases ……………………………………
65
            
65
            
-
          
-
          
    Access to Contraception and Diabetes medications
      and access to Diabetes devices and supplies……………
17
            
243
          
205
         
205
         
    Child Care  ……………………………………………………
1,145
       
1,123
       
1,040
      
1,071
      
    Child Safety, Family Support, Children 
      in Care and with special needs  ....................................
80
            
79
            
75
           
75
           
    Public Transit  ..................................................................
151
          
196
          
36
           
7
             
    Local government services and transfers .......................
198
          
192
          
175
         
124
         
    Other recoveries ..............................................................
177
          
233
          
217
         
217
         
Taxpayer-supported Crown corporations.............................
405
          
378
          
399
         
220
         
Post-secondary institutions .................................................
702
          
712
          
730
         
751
         
Other SUCH sector agencies ..............................................
154
          
153
          
154
         
155
         
Service delivery agency direct revenue
10,150
     
10,223
     
10,109
    
10,061
    
School districts …………………………………………………
763
          
790
          
782
         
794
         
Post-secondary institutions ……………………………………
5,212
       
5,068
       
5,143
      
5,269
      
Health authorities and hospital societies ……………………
1,617
       
1,625
       
1,668
      
1,667
      
BC Transportation Financing Authority ………………………
547
          
581
          
591
         
608
         
Other service delivery agencies ..........................................
2,011
       
2,159
       
1,925
      
1,723
      
+/- 0.1 percentage point change in B.C.'s 
population share equals +/- $75 million
Revenue Source and Assumptions
($ millions unless otherwise specified)
Plan 
2028/29
Plan 
2027/28

--- page 168 ---
APPENDIX
158  |	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A5 Material Assumptions – Revenue (continued)
2026/27 Sensitivities
Commercial Crown corporation net income
3,915
       
3,820
       
3,825
      
3,825
      
BC Hydro …………………………………………………………
712
          
712
          
712
         
712
         
Reservoir water inflows …………………………………………
85%
100%
100%
100% +/-1% in hydro generation equals +/- $25 million
Customer demand (GWh) ……………………………………
56,961
     
57,083
     
56,595
    
57,610
    
+/-1% equals +/-$30 million
Electricity prices (Mid-C, $US/MWh) ........……………………
47.90
       
58.48
       
62.37
      
62.11
      
Purchases from Energy Purchase Agreements (GWh) ……
13,121
     
13,803
     
14,034
    
14,800
    
+/-1% equals +/-$5 million
Interest rates - variable debt …………………………………
2.45%
2.21%
2.45%
2.51% +/-100 basis points = +/- $60 million
ICBC …………………………………………………...…………
800
          
700
          
700
         
700
         
Vehicle growth .....................................................................
1.4%
0.7%
1.1%
1.1% +/-1% equals +/-$67 million
Current claims cost percentage change ..............................
13.0%
16.2%
2.8%
6.7% +/-1% equals +/-$53 million
Unpaid claims balance ($ billions) .......................................
8.7
8.3
8.3
8.5 +/-1% equals +/-$83 to $87 million
Investment return ………………………………………………
5.5%
5.2%
5.6%
6.5% +/-1% return equals +/-$183 to 187 million
Loss ratio .............................................................................
84.0%
84.1%
85.0%
87.6%
+/-1% change in electricity/gas trade margin 
equals +/- $10 million
Sensitivities impacts shown below are before 
regulatory account transfers
Revenue Source and Assumptions
($ millions unless otherwise specified)
Plan 
2027/28
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2028/29

--- page 169 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 159
APPENDIX
Natu ral G as Prices























2.18
2.48
1.12
2.39
CGnJiJaMoule Slant inlet
-une 2019 0.28
DecePEer 2022 6.43
Budget 2026
Table A6   Natural Gas Price Forecasts
                                            Private sector forecasts (calendar year)
Market  Price
($C/GJ at Plant Inlet)
2026
2027
2028
2026/27
2027/28
2028/29
GLJ Henry Hub US$/MMBtu  (Jan 2026) ……………………………………………
3.98
4.00
4.16
2.48
2.49
2.65
Sproule Henry Hub US$/MMBtu (Dec 2025) …………………………………………
3.50
3.50
3.50
1.67
1.81
1.83
McDaniel Henry Hub US$/MMBtu (Jan 2026) ………………………………………
3.75
3.83
3.90
2.18
2.24
2.33
Deloitte Henry Hub US$/Mcf (Dec 2025) ……………………………………………
3.83
3.90
4.10
2.18
2.40
2.64
GLJ Alberta AECO-C Spot CDN$/MMBtu (Jan 2026) ………………………………
2.93
3.24
3.54
2.85
3.00
3.25
Sproule Alberta AECO-C Spot CDN$/MMBtu (Dec 2025) …………………………
3.06
3.35
3.28
2.87
3.01
2.91
McDaniel AECO-C Spot C$/MMBtu (Jan 2026) ……………………………………
3.00
3.32
3.64
2.93
3.10
3.35
Deloitte AECO-C Spot C$/Mcf (Dec 2025) …………………………………………
2.95
3.55
3.65
2.84
3.32
3.35
GLJ Sumas Spot US$/MMBtu (Jan 2026) ……………………………………………
1.98
3.50
3.66
1.57
2.81
2.92
Sproule Sumas Spot CDN$/MMBtu (Dec 2025) ……………………………………
4.86
5.19
5.15
4.72
4.84
4.75
GLJ BC Spot Plant Gate CDN$/MMBtu (Jan 2026) …………………………………
2.06
2.68
2.97
2.29
2.77
3.03
Sproule BC Station 2 CDN$/MMBtu (Dec 2025) ……………………………………
2.86
3.15
3.07
2.85
2.99
2.88
McDaniel BC Avg Plant Gate C$MMBtu (Jan 2026) ………………………………
2.20
2.50
2.81
2.34
2.55
2.80
Deloitte BC Station 2 C$MMBtu (Dec 2025) …………………………………………
2.65
3.25
3.35
2.93
3.41
3.46
GLJ Midwest Chicago US$/MMBtu (Jan 2026) ………………………………………
3.63
3.80
3.96
3.30
3.23
3.33
Sproule Alliance  Plant Gate CDN$/MMBtu (Dec 2025) ……………………………
4.71
4.58
4.51
4.83
4.54
4.42
EIA Henry Hub US$/MMBtu (Dec 2025) ……………………………………………
4.01
TD Economics Henry Hub FuturesUS$/MMBtu (Jun 2025) ………………………
3.93
3.53
1.95
Scotiabank Group Henry Hub US$/MMBtu (Jun 2025) ……………………………
4.75
3.53
3.19
BMO Henry Hub US$/MMBtu (Jun 2025) ……………………………………………
3.75
InSite Petroleum Consultants Ltd BC Spot C$/Mcf (Dec 2025) ........................
3.00
3.30
3.64
2.80
3.09
3.35
NYMEX Forward Market converted to Plant Inlet CDN$/GJ (Dec 2025) ………………………………………………………
2.08
2.28
2.01
Average all minus high/low …….……………...…………………………………………………………………..
2.73
3.00
3.11
Average one forecast per consultant minus high/low …………………………………………………………
2.64
2.95
3.08
Natural gas royalty price forecast …………………………………………………………………………………
2.18
2.39
2.48
GLJ: Gilbert Laustsen Jung Petroleum Consultants Ltd         US EIA: US Energy Information Administration          AECO:  Alberta  Energy  Company
Deloitte/AJM: Deloitte L.L.P acquired Ashton Jenkins  Mann  Petroleum  Consultants            McDaniel: McDaniel & Associates Consultants Ltd

--- page 170 ---
APPENDIX
160  |	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A7  Material Assumptions – Expense
Ministry Programs and Assumptions
($ millions unless otherwise specified)
2026/27 Sensitivities
Attorney General ………………………………………
872
         
897
          
899
          
899
          
New cases filed/processed …………………………
242,000
  
242,000
   
242,000
   
242,000
   
(# for all courts)
 Crown Proceeding Act (CPA) ………………………
25
           
25
            
25
            
25
            
Children and Family Development …………………
2,400
      
2,712
       
2,594
       
2,599
       
Average children-in-care ……………………………
4,855
      
4,826
       
4,890
       
4,845
       
caseload (#)
Average annual residential …………………………
180,400
  
210,790
   
191,750
   
198,830
   
cost per child in care ($)
Education and Child Care ……………………………
9,779
      
10,069
     
10,136
     
10,126
     
Public School Enrolment (# of FTEs) ……………… 602,998
  
597,569
   
590,283
   
581,451
   
School age (K–12) .............................................
576,988
  
572,887
   
565,704
   
556,998
   
Continuing Education ........................................
796
         
761
          
761
          
761
          
Distributed Learning (online) ..............................
15,440
    
14,283
     
14,179
     
14,053
     
Summer ............................................................
7,422
      
7,422
       
7,422
       
7,422
       
Adults ................................................................
2,352
      
2,218
       
2,218
       
2,218
       
Climate Readiness .............................................
442
         
111
          
108
          
108
          
Emergency and Disaster Management Act ………
362
         
36
            
36
            
36
            
Forests …………………...…...................................
1,325
      
910
          
860
          
868
          
BC Timber Sales …………………………….………
240
         
268
          
218
          
226
          
Fire Management ……………………………………
665
         
236
          
236
          
236
          
Health ....................................................................
35,017
    
36,116
     
37,240
     
38,404
     
Pharmacare ……………………………………………
1,788
      
1,597
       
1,597
       
1,597
       
Medical Services Plan (MSP) ………………………
8,128
      
8,910
       
9,149
       
9,410
       
Regional Services ……………………………………
24,782
    
25,287
     
26,172
     
27,076
     
Updated
Forecast 
2025/26
Plan 
2028/29
Budget
Estimate 
2026/27
Targets can be impacted by changes to actual 
inventory costs incurred. There is a lag of 
approximately 1.5 years between when inventory 
costs are incurred and when they are expensed. 
Volume harvested can also impact targets. For 
example, if volume harvested is less than projected 
in any year, then capitalized expenses will also be 
reduced in that year.
Emergency disaster relief is unpredictable. There 
are a number of factors that could impact the timing 
of delivering recovery projects resulting from the 
Emergency Events. 
Plan 
2027/28
Updated forecast enrolment figures for Q3 are 
based on submissions from school districts of their 
actual enrolment as at September 30, 2025 for the 
2025/26 school year and projected enrolment for 
February and May 2026.  Projections are based on 
the Ministry of Education and Child Care's 
enrolment forecasting model.
The number of criminal cases proceeded on by the 
provincial and federal Crown (including appeals to 
higher courts in BC), the number of civil and family 
litigation cases, the number of violation tickets 
disputed, and the number of municipal bylaw tickets 
disputed which would go to court for resolution.
Number of litigation cases resolved by court 
decisions or negotiated settlement; changes in 
Legal Counsel assessment of probability of payment 
and/or quantum; newly identified pending litigation 
cases.
The average number of children-in-care is 
decreasing in the long run as a result of ministry 
efforts to keep children in family settings where safe 
and feasible. The average cost per child in care is 
projected to increase based on the higher cost of 
contracted residential services and SHSS 
contracted services, and an increasing acuity of 
need for children in care. A 1% increase in the cost 
per case or a 1% increase in the average caseload 
will affect expenditures by $4.5 million (excluding 
Indigenous CFS Agencies).
A 1% increase in volume of services provided by 
Health Authorities is estimated to be $255 million.
A 1% change in PharmaCare utilization or prices 
affects costs by approximately $15 million.
A 1% increase in volume of services provided by fee-
for-service and other demand driven programs 
physicians expenditures is approximately $61 
million.
Costs are driven by length of season and severity of 
weather conditions, severity of fires, proportion of 
interface fires and size of fires. Costs have ranged 
from a low of $47 million in 2006 to a high of $1.094 
billion in 2023/24 (Fire season 2023). Current year 
costs are already well above the 20 year average.
Emergency Management and 

--- page 171 ---
	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29	
|  161 
APPENDIX
Table A7  Material Assumptions – Expense (continued)
Ministry Programs and Assumptions
($ millions unless otherwise specified)
2026/27 Sensitivities
Post-Secondary Education and Future Skills .....
3,510
      
3,580
       
3,607
       
3,634
       
Student spaces in public institutions ……………… 207,174
  
210,054
   
210,003
   
209,986
   
Public Safety and Solicitor General ....................
1,104
      
1,100
       
1,100
       
1,099
       
Policing, Victim Services and Corrections ............
986
         
983
          
982
          
982
          
Social Development and Poverty Reduction ……
5,705
      
5,977
       
6,057
       
6,156
       
Temporary Assistance ………………………….……
75,952
    
78,200
     
80,600
     
86,400
     
annual average caseload (#)
Disability Assistance ………………………………… 128,565
  
134,700
   
138,100
   
138,100
   
annual average caseload (#)
Adult Community Living:
Developmental Disability Programs
Average caseload (#) ………………………………
26,060
    
27,040
     
28,050
     
29,110
     
Average cost per client ($) …………………………
63,900
    
64,100
     
61,900
     
59,700
     
Personal Supports Initiative (PSI)
Average caseload (#) ………………………………
3,860
      
4,200
       
4,550
       
4,910
       
Average cost per client ($) …………………………
18,300
    
17,800
     
16,500
     
15,300
     
Updated
Forecast 
2025/26
Budget
Estimate 
2026/27
Plan 
2028/29
Plan 
2027/28
Student enrolments may fluctuate due to a number 
of factors including economic changes and labour 
market needs.
The adult community living caseload is sensitive to 
an aging population and to the level of service 
required. Cost per case fluctuations are driven by 
the proportion of clients receiving certain types of 
services at differing costs. For example, residential 
care services are significantly more costly than day 
programs. 
Policing, Victim Services and Corrections costs are 
sensitive to the volume and severity of criminal 
activity, the number of inmate beds occupied and 
the number of offenders under community 
supervision. 
The caseload for persons with disabilities is 
sensitive to the aging of the population and longer 
life expectancy for individuals with disabilities. Cost 
per case fluctuations are driven primarily by 
earnings exemptions which is dependent on the 
level of income earned by clients.
The expected to work caseload is sensitive to 
fluctuations in economic and employment trends. 
Costs are driven by changes to cost per case and 
caseload. Cost per case fluctuations result from 
changes in the needed supports required by clients, 
as well as caseload composition.

--- page 172 ---
APPENDIX
162  |	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A7  Material Assumptions – Expense (continued)
Ministry Programs and Assumptions
($ millions unless otherwise specified)
2026/27 Sensitivities
Tax Transfers …………………………………………
2,620
      
2,466
       
2,787
       
2,922
       
Individuals .............................................................
1,639.0
   
1,092.0
    
1,181.0
    
1,218.0
    
Climate Action Tax Credit ...................................
310.0
      
-
          
-
          
-
          
BC Family Benefit …………………......................
578.8
      
520.0
       
520.0
       
520.0
       
BC Family Benefit Disability Supplement …........
-
          
-
          
105.0
       
140.0
       
Renter's Tax Credit ………………………………..
260.0
      
232.0
       
235.0
       
237.0
       
Sales Tax  ...........................................................
36.7
        
42.0
         
42.0
         
42.0
         
Small Business Venture Capital .........................
38.5
        
40.0
         
40.0
         
40.0
         
BC Senior's Home Renovation ...........................
2.4
          
3.0
           
3.0
           
3.0
           
Capital Gains Refund ..........................................
402.9
      
244.0
       
225.0
       
225.0
       
Other tax transfers to individuals  .......................
9.7
          
11.0
         
11.0
         
11.0
         
Corporations ..........................................................
981.0
      
1,374.0
    
1,606.0
    
1,704.0
    
Film and Television .............................................
161.1
      
176.0
       
196.0
       
200.0
       
Production Services ............................................
420.1
      
751.0
       
935.0
       
1,017.0
    
Scientific Research & Experimental
   Development ....................................................
149.7
      
150.0
       
155.0
       
160.0
       
Interactive Digital Media .....................................
167.7
      
163.0
       
186.0
       
193.0
       
Mining Exploration ..............................................
72.5
        
60.0
         
60.0
         
60.0
         
Manufacturing and Processing Investment..........
-
          
55.0
         
55.0
         
55.0
         
Other tax transfers to corporations .....................
9.9
          
19.0
         
19.0
         
19.0
         
Prior-year adjustment (included above)*
Individuals ...........................................................
173.8
      
Corporations .......................................................
(239.5)
     
2024 Tax-year
Tax Transfers …………………………………………
3,058.0
   
Individuals .............................................................
1,997.8
   
Corporations ..........................................................
1,060.2
   
    Film and Television .........................................
148.6
      
Production Services ........................................
554.6
      
    Scientific Research & Experimental
   Development ................................................
122.2
      
Interactive Digital Media ..................................
146.5
      
Other tax transfers to corporations .................
88.3
        
**2025/26 tax transfer forecast incorporates adjustments relating to prior years.
Management of Public Funds and Debt …………
2,887
      
3,798
       
4,644
       
5,404
       
Interest rates for new provincial borrowing:
Short-term ……………………………………………
2.44%
2.34%
2.69%
2.76%
Long-term ……………………………………………
4.69%
4.72%
4.78%
4.69%
CDN/US exchange rate (cents) ……………………
138.2
      
134.9
       
131.5
       
129.5
       
Service delivery agency net spending ……………
10,458
    
10,846
     
11,015
     
11,433
     
School districts ………………………………………
672
         
682
          
698
          
713
          
Post-secondary institutions …………………………
5,101
      
5,063
       
5,099
       
5,218
       
Health authorities and hospital societies …………
1,568
      
1,634
       
1,622
       
1,627
       
BC Transportation Financing Authority ……………
1,970
      
2,321
       
2,638
       
2,934
       
BC Infrastructure Benefits ……………………………
329
         
183
          
39
            
8
              
Other service delivery agencies ……………………
818
         
963
          
919
          
933
          
Agency expenses, net of Provincial funding. These 
are mainly funded through revenue from other 
sources.
Updated
Forecast 
2025/26
Budget
Estimate 
2026/27
Plan 
2028/29
Changes in 2025 tax transfers will result in one-time 
effect (prior-year adjustment) and could result in an 
additional base change in 2026/27. Production 
services tax credit is the most volatile of all tax 
transfers and is influenced by several factors 
including delay in filing returns and assessment of 
claims, length of projects and changes in the 
exchange rates.
2024 Assumptions
Full year impact on MoPD on interest costs:  
- 1% change in interest rates equals $179.7 million; 
- $100 million increase in debt level equals $4.1 
million.
Plan 
2027/28
These tax transfers are now expensed as required 
under generally accepted accounting principles.  

--- page 173 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 163
APPENDIX
Table A8   Operating Statement – 2019/20 to 2028/29 
($ millions)
Actual 
2019/20
Actual 
2020/21
Actual
 2021/22
Actual
 2022/23
Actual 
2023/24
Actual
2024/25
Updated 
Forecast
2025/26
Budget 
Estimate
2026/27
Plan
2027/28
Plan
2028/29
Average 
annual 
change
(per cent)
Revenue …………………………………………
58,493
       
62,047
       
72,391
       
81,790
       
79,623
       
84,046
       
85,082
       
85,523
       
88,578
       
91,754
       
5.1
Expense …………….....…....………………..…
(59,024)
     
(67,662)
     
(71,129)
     
(80,834)
     
(84,658)
     
(91,393)
     
(94,696)
     
(98,832)
     
(100,743)
   
(103,191)
  
6.4
Surplus (deficit) ……………………………………
(531)
          
(5,615)
       
1,262
         
956
           
(5,035)
       
(7,347)
       
(9,614)
       
(13,309)
     
(12,165)
     
(11,437)
    
Per cent of nominal GDP: 1
Surplus (deficit) .......................…………………
-0.2
-1.8
0.4
0.2
-1.2
-1.7
-2.2
-2.9
-2.5
-2.3
Per cent of revenue:
Surplus (deficit) .......................…………………
-0.9
-9.0
1.7
1.2
-6.3
-8.7
-11.3
-15.6
-13.7
-12.5
Per capita ($): 2
Surplus (deficit) .......................…………………
(104)
          
(1,085)
       
241
           
178
           
(913)
          
(1,296)
       
(1,687)
       
(2,357)
       
(2,145)
       
(1,996)
       
1
2
Surplus (deficit) as a per cent of nominal GDP is calculated using nominal GDP for the calendar year ending in the fiscal year (e.g. 2026/27 amounts divided by nominal GDP for the 2026 calendar year). 
Per capita revenue and expense is calculated using July 1 population (e.g. 2026/27 amounts divided by population on July 1, 2026).

--- page 174 ---
APPENDIX
164 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A9   Revenue by Source – 2019/20 to 2028/29
($ millions)
Actual 
2019/20
Actual 
2020/21
Actual 
2021/22
Actual  
2022/23
Actual  
2023/24
Actuals 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Taxation revenue:
(per cent)
Personal income ………………………………………
10,657
       
11,118
       
13,704
       
17,268
       
16,443
       
17,026
       
19,186
       
19,492
       
20,704
       
22,004
       
8.4
Corporate income ……………………………………
5,011
         
4,805
         
5,053
         
9,156
         
6,085
         
8,262
         
7,957
         
7,645
         
8,158
         
8,162
         
5.6
Employer health ………………………………………
1,897
         
2,156
         
2,443
         
2,720
         
2,886
         
3,056
         
3,075
         
3,167
         
3,264
         
3,382
         
6.6
Sales …………………………………………………
7,374
         
7,694
         
8,731
         
9,818
         
10,330
       
10,363
       
10,687
       
11,436
       
12,120
       
12,545
       
6.1
Fuel ……………………………………………………
1,008
         
936
            
1,022
         
1,021
         
982
            
979
            
1,014
         
1,039
         
1,054
         
1,069
         
0.7
Carbon 1 ………………………………………………
1,682
         
1,683
         
2,011
         
2,161
         
2,642
         
2,606
         
262
            
334
            
386
            
440
            
-13.8
Tobacco ………………………………………………
729
            
711
            
708
            
531
            
477
            
412
            
291
            
311
            
311
            
311
            
-9.0
Property ………………………………………………
2,608
         
2,313
         
3,012
         
3,253
         
3,605
         
3,837
         
4,067
         
4,451
         
4,979
         
5,330
         
8.3
Property transfer ………………………………………
1,609
         
2,098
         
3,327
         
2,293
         
1,993
         
2,005
         
1,750
         
1,935
         
2,077
         
2,229
         
3.7
Insurance premium and other taxes ………………
691
            
652
            
706
            
804
            
853
            
900
            
935
            
965
            
985
            
1,005
        
4.3
33,266
       
34,166
       
40,717
       
49,025
       
46,296
       
49,446
       
49,224
       
50,775
       
54,038
       
56,477
      
6.1
Natural resource revenue:
Natural gas royalties …………………………………
118
            
196
            
920
            
2,255
         
823
            
672
            
942
            
1,297
         
1,305
         
1,572
         
33.3
Bonus bids, rents on drilling rights and leases ……
60
              
45
              
45
              
41
              
42
              
42
              
68
              
38
              
38
              
36
              
-5.5
Columbia River Treaty ………………………………
119
            
117
            
231
            
437
            
448
            
297
            
275
            
271
            
259
            
271
            
9.6
Other energy and minerals …………………………
386
            
191
            
795
            
979
            
637
            
448
            
276
            
320
            
442
            
468
            
2.2
Forests …………………………………………………
988
            
1,304
         
1,893
         
1,887
         
657
            
514
            
505
            
521
            
518
            
556
            
-6.2
Other resources ………………………………………
432
            
433
            
499
            
518
            
536
            
443
            
489
            
564
            
615
            
646
           
4.6
2,103
         
2,286
         
4,383
         
6,117
         
3,143
         
2,416
         
2,555
         
3,011
         
3,177
         
3,549
        
6.0
Other revenue:
Medical Services Plan premiums …………………
1,063
         
(4)
               
1
                
(1)
               
(1)
               
-
                
-
                
-
                
-
                
-
                
n/a    
Post-secondary education fees ……………………
2,451
         
2,418
         
2,536
         
2,651
         
2,840
         
2,911
         
2,691
         
2,578
         
2,598
         
2,658
         
0.9
Other health-care related fees ………………………
475
            
372
            
417
            
519
            
591
            
631
            
642
            
651
            
660
            
661
            
3.7
Motor vehicle licences and permits …………………
576
            
581
            
622
            
621
            
630
            
641
            
654
            
664
            
675
            
687
            
2.0
Other fees and licences ……………………………
1,004
         
970
            
1,025
         
1,146
         
1,217
         
1,285
         
1,311
         
1,349
         
1,390
         
1,311
         
3.0
Investment earnings …………………………………
1,263
         
1,264
         
1,306
         
1,314
         
1,708
         
2,159
         
1,823
         
2,000
         
2,133
         
2,255
         
6.7
Sales of goods and services ………………………
1,162
         
741
            
1,059
         
1,396
         
1,548
         
1,534
         
1,645
         
1,706
         
1,588
         
1,608
         
3.7
Miscellaneous 2 ………………………………………
2,676
         
2,395
         
2,851
         
3,049
         
3,440
         
3,926
         
6,012
         
3,501
         
3,391
         
3,388
        
2.7
10,670
       
8,737
         
9,817
         
10,695
       
11,973
       
13,087
       
14,778
       
12,449
       
12,435
       
12,568
      
1.8
Contributions from the federal government:
Canada Health Transfer ……………………………
5,523
         
5,701
         
6,431
         
6,432
         
7,117
         
7,203
         
7,450
         
7,855
         
8,239
         
8,556
         
5.0
Canada Social Transfer ……………………………
1,971
         
2,042
         
2,110
         
2,174
         
2,273
         
2,339
         
2,372
         
2,454
         
2,525
         
2,605
         
3.1
Other cost shared agreements ……………………
2,041
         
5,151
         
3,439
         
3,921
         
4,344
         
4,765
         
4,788
         
5,159
         
4,339
         
4,174
        
8.3
9,535
         
12,894
       
11,980
       
12,527
       
13,734
       
14,307
       
14,610
       
15,468
       
15,103
       
15,335
      
5.4
Commercial Crown corporation net income:
BC Hydro  ……………………………………………
705
            
688
            
668
            
360
            
323
            
587
            
712
            
712
            
712
            
712
            
0.1
Liquor Distribution Branch …………………………
1,107
         
1,161
         
1,189
         
1,199
         
1,148
         
1,094
         
950
            
945
            
897
            
847
            
-2.9
BC Lottery Corporation 3 …………………...………
1,336
         
420
            
1,211
         
1,584
         
1,429
         
1,295
         
1,269
         
1,293
         
1,339
         
1,386
         
0.4
ICBC ………………………..…………………………
(376)
           
1,528
         
2,286
         
131
            
1,399
         
1,653
         
800
            
700
            
700
            
700
            
-207.1
Other …………………………………………………
147
            
167
            
140
            
152
            
178
            
161
            
184
            
170
            
177
            
180
           
2.3
2,919
         
3,964
         
5,494
         
3,426
         
4,477
         
4,790
         
3,915
         
3,820
         
3,825
         
3,825
        
3.0
Total revenue ……………………………………
58,493
       
62,047
       
72,391
       
81,790
       
79,623
       
84,046
       
85,082
       
85,523
       
88,578
       
91,754
      
5.1
1
2
3
Carbon tax revenue was eliminated effective April 1, 2025. Includes carbon tax revenue until 2024/25 and output-based pricing system revenue from large industrial emitters from 2025/26. 
Miscellaneous revenue includes $2.725 billion in 2025/26 in relation to the tobacco settlement and $139 million in 2026/27 to reflect the addition of health sector regulatory colleges under the Health Professions and Occupations 
Act to the government reporting entity effective April 1, 2026.
Net of federal government payments and beginning in 2021/22, is also net of payments to the BC First Nations Gaming Revenue Sharing Limited Partnership in accordance with section 14.3 of the   Gaming Control Act (B.C.).

--- page 175 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 165
APPENDIX
Table A10   Revenue by Source Supplementary Information – 2019/20 to 2028/29 1
Actual 
2019/20
Actual 
2020/21
Actual 
2021/22
Actual  
2022/23
Actual  
2023/24
Actuals 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Per cent of nominal GDP: 2
(per cent)
Taxation and Medical Services Plan premiums …
11.1
           
11.1
           
11.4
           
12.3
           
11.2
           
11.5
           
11.0
           
10.9
           
11.1
           
11.2
           
0.1
Taxation ……………………………………………
10.8
           
11.1
           
11.4
           
12.3
           
11.2
           
11.5
           
11.0
           
10.9
           
11.1
           
11.2
           
0.4
Medical Services Plan premiums ………………
0.3
             
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
n/a    
Natural resources ……………………………………
0.7
             
0.7
             
1.2
             
1.5
             
0.8
             
0.6
             
0.6
             
0.6
             
0.7
             
0.7
             
0.3
Other …………………………………………………
3.5
             
2.8
             
2.8
             
2.7
             
2.9
             
3.1
             
3.3
             
2.7
             
2.6
             
2.5
             
-3.6
Other excluding
Medical Services Plan premiums ………………
3.1
             
2.8
             
2.8
             
2.7
             
2.9
             
3.1
             
3.3
             
2.7
             
2.6
             
2.5
             
-2.5
Contributions from the federal government ………
3.1
             
4.2
             
3.4
             
3.1
             
3.3
             
3.3
             
3.3
             
3.3
             
3.1
             
3.0
             
-0.2
Commercial Crown corporation net income ………
0.9
             
1.3
             
1.5
             
0.9
             
1.1
             
1.1
             
0.9
             
0.8
             
0.8
             
0.8
             
-2.4
Total revenue ……………………………………
18.9
           
20.2
           
20.3
           
20.4
           
19.2
           
19.6
           
19.0
           
18.3
           
18.2
           
18.1
           
-0.5
Growth rates (per cent):
Taxation ………………………………………………
1.7
2.7
19.2
20.4
-5.6
6.8
-0.4
3.2
6.4
4.5
n/a    
Natural resources ……………………………………
-28.3
8.7
91.7
39.6
-48.6
-23.1
5.8
17.8
5.5
11.7
n/a    
Other …………………………………………………
4.2
-18.1
12.4
8.9
11.9
9.3
12.9
-15.8
-0.1
1.1
n/a    
Other excluding
Medical Services Plan premiums ………………
8.1
-9.0
12.3
9.0
11.9
9.3
12.9
-15.8
-0.1
1.1
n/a    
Contributions from the federal government ………
5.3
35.2
-7.1
4.6
9.6
4.2
2.1
5.9
-2.4
1.5
n/a    
Commercial Crown corporation net income ………
45.6
35.8
38.6
-37.6
30.7
7.0
-18.3
-2.4
0.1
0.0
n/a    
Total revenue ……………………………………
2.7
6.1
16.7
13.0
-2.6
5.6
1.2
0.5
3.6
3.6
n/a    
Per capita ($): 3
Taxation ………………………………………………
6,509
         
6,601
         
7,790
         
9,148
         
8,394
         
8,719
         
8,640
         
8,991
         
9,529
         
9,856
         
4.7
Natural resources ……………………………………
411
            
442
            
839
            
1,141
         
570
            
426
            
448
            
533
            
560
            
619
            
4.7
Other …………………………………………………
2,088
         
1,688
         
1,878
         
1,996
         
2,171
         
2,308
         
2,594
         
2,204
         
2,193
         
2,193
         
0.5
Other excluding
Medical Services Plan premiums ………………
1,880
         
1,689
         
1,878
         
1,996
         
2,171
         
2,308
         
2,594
         
2,204
         
2,193
         
2,193
         
1.7
Contributions from the federal government ………
1,866
         
2,491
         
2,292
         
2,338
         
2,490
         
2,523
         
2,564
         
2,739
         
2,663
         
2,676
         
4.1
Commercial Crown corporation net income ………
571
            
766
            
1,051
         
639
            
812
            
845
            
687
            
676
            
674
            
668
            
1.8
Total revenue ……………………………………
11,444
       
11,987
       
13,850
       
15,263
       
14,437
       
14,820
       
14,933
       
15,144
       
15,619
       
16,012
       
3.8
Real Per Capita Revenue (2025 $) 4 …………………
13,805
       
14,350
       
16,130
       
16,626
       
15,134
       
15,135
       
14,933
       
14,835
       
15,004
       
15,080
       
1.0
Growth rate (per cent) ………………………………
0.7
4.0
12.4
3.1
-9.0
0.0
-1.3
-0.7
1.1
0.5
1.1
1
2
3
4
Per capita revenue is calculated using July 1 population (e.g. 2026/27 revenue divided by population on July 1, 2026).
Revenue is converted to real (inflation-adjusted) terms using the consumer price index (CPI) for the corresponding calendar year (e.g. 2026 CPI for 2026/27 revenue).
Numbers may not add due to rounding.
Revenue as a per cent of GDP is calculated using nominal GDP for the calendar year ending in the fiscal year (e.g. 2026/27 revenue divided by nominal GDP for the 2026 calendar year).

--- page 176 ---
APPENDIX
166  |	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A11   Expense by Function – 2019/20 to 2028/29 1,2
($ millions)
Actual
2019/20
Actual
2020/21
Actual
2021/22
Actual
2022/23
Actual
2023/24
Actual
2024/25
Updated 
Forecast
2025/26
Budget 
Estimate
2026/27
Plan
2027/28
Plan
2028/29
Average 
annual 
change
Function:
(per cent)
Health:
Medical Services Plan ………………………………………
5,013
        
5,145
        
5,776
        
6,006
        
7,071
        
8,240
        
8,420
        
9,206
        
9,445
        
9,706
        
7.6
Pharmacare …………………………………………………
1,517
        
1,501
        
1,579
        
1,711
        
1,906
        
1,974
        
2,134
        
2,170
        
2,102
        
2,101
        
3.7
Regional services …………………………………………..
16,054
      
18,290
      
19,574
      
21,715
      
25,261
      
27,288
      
27,491
      
28,189
      
28,828
      
29,595
      
7.0
Other healthcare expenses ……………………..............…
872
           
677
           
662
           
890
           
625
           
680
           
968
           
1,013
        
806
           
812
           
-0.8
Total health ……………………………………………........
23,456
      
25,613
      
27,591
      
30,322
      
34,863
      
38,182
      
39,013
      
40,578
      
41,181
      
42,214
      
6.7
Education:
Elementary and secondary ……………………….......……
7,584
        
7,444
        
8,085
        
8,585
        
9,285
        
9,990
        
10,051
      
10,255
      
10,325
      
10,348
      
3.5
Post-secondary ……………………………...................…
6,846
        
6,872
        
7,357
        
7,517
        
8,403
        
8,856
        
9,207
        
9,297
        
9,416
        
9,577
        
3.8
Other education expenses ………….........................……
312
           
630
           
361
           
891
           
791
           
763
           
455
           
518
           
543
           
572
           
7.0
Total education ……………………………………………..
14,742
      
14,946
      
15,803
      
16,993
      
18,479
      
19,609
      
19,713
      
20,070
      
20,284
      
20,497
      
3.7
Social services:
Social assistance ……………………………………………
2,342
        
3,141
        
2,910
        
3,157
        
3,009
        
3,599
        
3,702
        
3,889
        
3,995
        
4,093
        
6.4
Child welfare ………………………………………………..
1,940
        
2,226
        
2,254
        
3,168
        
3,941
        
4,547
        
4,496
        
4,791
        
4,918
        
5,003
        
11.1
Low income tax credit transfers ………………..........……
435
           
1,131
        
754
           
1,746
        
733
           
1,015
        
347
           
42
             
42
             
42
             
-22.9
Community living and other services ………………………
1,170
        
1,291
        
1,350
        
1,581
        
1,601
        
1,761
        
1,962
        
2,068
        
2,031
        
2,022
        
6.3
Total social services …………………………………………
5,887
        
7,789
        
7,268
        
9,652
        
9,284
        
10,922
      
10,507
      
10,790
      
10,986
      
11,160
      
7.4
Protection of persons and property …………...……………
2,126
        
2,258
        
2,937
        
3,483
        
3,101
        
3,183
        
2,931
        
2,641
        
2,643
        
2,650
        
2.5
Transportation …………………………………………………
2,126
        
3,362
        
4,453
        
3,319
        
2,379
        
2,933
        
2,699
        
2,924
        
2,819
        
2,913
        
3.6
Natural resources & economic development ………………
3,778
        
4,191
        
5,213
        
6,284
        
6,704
        
6,165
        
4,551
        
4,269
        
4,293
        
4,269
        
1.4
 Other 3 …………………………………………………………
2,525
        
2,862
        
3,082
        
5,736
        
4,215
        
4,022
        
3,419
        
3,542
        
3,382
        
3,247
        
2.8
Contingencies Vote ……………………………………………
-
               
-
               
-
               
-
               
-
               
-
               
4,000
        
5,000
        
5,000
        
5,000
        
n/a    
General government …………………………………………
1,657
        
3,919
        
2,040
        
2,326
        
2,341
        
2,132
        
2,824
        
2,652
        
2,574
        
2,530
        
4.8
Debt servicing …………………………………………………
2,727
        
2,722
        
2,742
        
2,719
        
3,292
        
4,245
        
5,039
        
6,366
        
7,581
        
8,711
        
13.8
Total expense ……………………………………………...
59,024
      
67,662
      
71,129
      
80,834
      
84,658
      
91,393
      
94,696
      
98,832
      
100,743
    
103,191
    
Per cent of operating expense:
Health ……………………………………………………………
39.7
          
37.9
          
38.8
          
37.5
          
41.2
          
41.8
          
41.2
          
41.1
          
40.9
          
40.9
          
0.3
Education ………………………………………………………
25.0
          
22.1
          
22.2
          
21.0
          
21.8
          
21.5
          
20.8
          
20.3
          
20.1
          
19.9
          
-2.5
Social services…....................…………………………………
10.0
          
11.5
          
10.2
          
11.9
          
11.0
          
12.0
          
11.1
          
10.9
          
10.9
          
10.8
          
0.9
Protection of persons and property …………...……………
3.6
            
3.3
            
4.1
            
4.3
            
3.7
            
3.5
            
3.1
            
2.7
            
2.6
            
2.6
            
-3.7
Transportation …………………………………………………
3.6
            
5.0
            
6.3
            
4.1
            
2.8
            
3.2
            
2.9
            
3.0
            
2.8
            
2.8
            
-2.7
Natural resources & economic development ………………
6.4
            
6.2
            
7.3
            
7.8
            
7.9
            
6.7
            
4.8
            
4.3
            
4.3
            
4.1
            
-4.7
Other ……………………………………………………………
4.3
            
4.2
            
4.3
            
7.1
            
5.0
            
4.4
            
3.6
            
3.6
            
3.4
            
3.1
            
-3.4
Contingencies Vote ……………………………………………
-
             
-
             
-
             
-
             
-
             
-
             
4.2
            
5.1
            
5.0
            
4.8
            
n/a    
General government …………………………………………
2.8
            
5.8
            
2.9
            
2.9
            
2.8
            
2.3
            
3.0
            
2.7
            
2.6
            
2.5
            
-1.5
Debt servicing …………………………………………………
4.6
            
4.0
            
3.9
            
3.4
            
3.9
            
4.6
            
5.3
            
6.4
            
7.5
            
8.4
            
6.9
Operating expense …………………………………………
100.0
        
100.0
        
100.0
        
100.0
        
100.0
        
100.0
        
100.0
        
100.0
        
100.0
        
100.0
        
1
2
3
Figures reflect government accounting policies used in the  2024/25 Public Accounts audited financial statements.
Numbers may not add due to rounding.
Other spending includes expenditure management forecasted savings of $400 million in 2025/26. Expenditure management targets for 2026/27 onwards are reflected in base budgets.

--- page 177 ---
	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29	
|  167 
APPENDIX
Table A12   Expense by Function Supplementary Information – 2019/20 to 2028/29 1
Actual
2019/20
Actual
2020/21
Actual
2021/22
Actual
2022/23
Actual
2023/24
Actual
2024/25
Updated 
Forecast
2025/26
Budget 
Estimate
2026/27
Plan
2027/28
Plan
2028/29
Average 
annual 
change
Per cent of nominal GDP: 2
(per cent)
Health ……………………………………………………………
7.6
            
8.3
            
7.7
            
7.6
            
8.4
            
8.9
            
8.7
            
8.7
            
8.5
            
8.3
            
1.1
Education ………………………………………………………
4.8
            
4.9
            
4.4
            
4.2
            
4.5
            
4.6
            
4.4
            
4.3
            
4.2
            
4.1
            
-1.8
Social services …………………………………………………
1.9
            
2.5
            
2.0
            
2.4
            
2.2
            
2.5
            
2.4
            
2.3
            
2.3
            
2.2
            
1.6
Protection of persons and property …………...……………
0.7
            
0.7
            
0.8
            
0.9
            
0.7
            
0.7
            
0.7
            
0.6
            
0.5
            
0.5
            
-3.0
Transportation …………………………………………………
0.7
            
1.1
            
1.2
            
0.8
            
0.6
            
0.7
            
0.6
            
0.6
            
0.6
            
0.6
            
-2.0
Natural resources & economic development ………………
1.2
            
1.4
            
1.5
            
1.6
            
1.6
            
1.4
            
1.0
            
0.9
            
0.9
            
0.8
            
-4.0
Other ……………………………………………………………
0.8
            
0.9
            
0.9
            
1.4
            
1.0
            
0.9
            
0.8
            
0.8
            
0.7
            
0.6
            
-2.6
Contingencies Vote ……………………………………………
-
             
-
             
-
             
-
             
-
             
-
             
0.9
            
1.1
            
1.0
            
1.0
            
n/a    
General government …………………………………………
0.5
            
1.3
            
0.6
            
0.6
            
0.6
            
0.5
            
0.6
            
0.6
            
0.5
            
0.5
            
-0.8
Debt servicing …………………………………………………
0.9
            
0.9
            
0.8
            
0.7
            
0.8
            
1.0
            
1.1
            
1.4
            
1.6
            
1.7
            
7.7
Operating expense ………………..................................
19.1
          
22.0
          
19.9
          
20.2
          
20.4
          
21.3
          
21.2
          
21.2
          
20.7
          
20.4
          
0.7
Growth rates (per cent):
Health ……………………………………………………………
5.9
9.2
7.7
9.9
15.0
9.5
2.2
4.0
1.5
2.5
n/a    
Education ………………………………………………………
4.6
1.4
5.7
7.5
8.7
6.1
0.5
1.8
1.1
1.1
n/a    
Social services …………………………………………………
10.2
32.3
-6.7
32.8
-3.8
17.6
-3.8
2.7
1.8
1.6
n/a    
Protection of persons and property …………...……………
6.1
6.2
30.1
18.6
-11.0
2.6
-7.9
-9.9
0.1
0.3
n/a    
Transportation …………………………………………………
5.2
58.1
32.5
-25.5
-28.3
23.3
-8.0
8.3
-3.6
3.3
n/a    
Natural resources & economic development ………………
-1.2
10.9
24.4
20.5
6.7
-8.0
-26.2
-6.2
0.6
-0.6
n/a    
Other ……………………………………………………………
37.9
13.3
7.7
86.1
-26.5
-4.6
-15.0
3.6
-4.5
-4.0
n/a    
Contingencies Vote ……………………………………………
-
             
-
             
-
             
-
             
-
             
-
             
-
             
25.0
-
             
-
             
n/a    
General government …………………………………………
-1.0
136.5
-47.9
14.0
0.6
-8.9
32.5
-6.1
-2.9
-1.7
n/a    
Debt servicing …………………………………………………
1.6
-0.2
0.7
-0.8
21.1
28.9
18.7
26.3
19.1
14.9
n/a    
Operating expense …………………………………………
6.1
14.6
5.1
13.6
4.7
8.0
3.6
4.4
            
1.9
2.4
n/a    
Per capita ($): 3
Health ……………………………………………………………
4,589
        
4,948
        
5,279
        
5,658
        
6,321
        
6,733
        
6,847
        
7,185
        
7,262
        
7,367
        
5.4
Education ………………………………………………………
2,884
        
2,888
        
3,024
        
3,171
        
3,351
        
3,458
        
3,460
        
3,554
        
3,577
        
3,577
        
2.4
Social services …………………………………………………
1,152
        
1,505
        
1,391
        
1,801
        
1,683
        
1,926
        
1,844
        
1,911
        
1,937
        
1,948
        
6.0
Protection of persons and property …………...……………
416
           
436
           
562
           
650
           
562
           
561
           
514
           
468
           
466
           
462
           
1.2
Transportation …………………………………………………
416
           
650
           
852
           
619
           
431
           
517
           
474
           
518
           
497
           
508
           
2.2
Natural resources & economic development ………………
739
           
810
           
997
           
1,173
        
1,216
        
1,087
        
799
           
756
           
757
           
745
           
0.1
Other ……………………………………………………………
494
           
553
           
590
           
1,070
        
764
           
709
           
600
           
627
           
596
           
567
           
1.5
Contingencies Vote ……………………………………………
-
               
-
               
-
               
-
               
-
               
-
               
702
           
885
           
882
           
873
           
n/a    
General government …………………………………………
324
           
757
           
390
           
434
           
424
           
376
           
496
           
470
           
454
           
442
           
3.5
Debt servicing …………………………………………………
534
           
526
           
525
           
507
           
597
           
749
           
884
           
1,127
        
1,337
        
1,520
        
12.3
Operating expense ………………………………............
11,548
      
13,073
      
13,610
      
15,083
      
15,349
      
16,116
      
16,620
      
17,501
      
17,765
      
18,009
      
5.1
Real Per Capita Operating Expense (2025 $) 4 ………………
13,930
      
15,649
      
15,849
      
16,432
      
16,091
      
16,458
      
16,621
      
17,142
      
17,067
      
16,964
      
2.2
Growth rate (per cent) …………………………………………
1.8
12.3
1.3
3.7
-2.1
2.3
1.0
3.1
-0.4
-0.6
2.2
1
2
3
4
Expense as a per cent of GDP is calculated using nominal GDP for the calendar year ending in the fiscal year (e.g. 2026/27 expense divided by nominal GDP for the 2026 calendar year).  
Per capita expense is calculated using July 1 population (e.g. 2026/27 expense divided by population on July 1, 2026).
Expense is converted to real (inflation-adjusted) terms using the consumer price index (CPI) for the corresponding calendar year (e.g. 2026 CPI for 2026/27 expense).
Numbers may not add due to rounding.

--- page 178 ---
APPENDIX
168 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A13   Full-Time Equivalents (FTEs) – 2019/20 to 2028/29 1
Actual 
2019/20
Actual
2020/21
Actual
2021/22
Actual
2022/23
Actual
2023/24
Actual
2024/25
Updated 
Forecast
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Taxpayer-supported programs and agencies:
(per cent)
Ministries and special offices (CRF)  …………………
31,774
     
32,672
     
33,400
     
33,696
     
37,008
     
39,036
     
37,500
     
-
               
-
               
-
               
1.4
Adjusted forecast for impacts of job action 2 …………
-
               
-
               
-
               
-
               
-
               
-
               
38,500
     
37,700
     
36,500
     
36,000
     
Service delivery agencies 3 …………….....…....………
5,985
       
6,042
       
6,767
       
7,746
       
8,666
       
9,575
       
10,155
     
9,369
       
8,420
       
8,166
      
3.5
Total FTEs 4 …………………………………………
37,759
     
38,714
     
40,167
     
41,442
     
45,674
     
48,611
     
47,655
     
47,069
     
44,920
     
44,166
    
1.8
Growth rates (per cent):
Ministries and special offices (CRF) ……………………
2.9
2.8
2.2
0.9
9.8
5.5
-3.9
0.5
           
(3.2)
          
(1.4)
          
n/a
Service delivery agencies …………….....…....………
13.8
1.0
12.0
14.5
11.9
10.5
6.1
-7.7
-10.1
-12.8
n/a
Population per FTE: 5
Total FTEs ………………………………………………
135.4
       
133.7
       
130.1
       
129.3
       
120.8
       
116.7
       
119.6
       
120.0
       
126.2
       
129.7
       
-0.5
1
2 This row shows the FTE forecast excluding the estimated impacts of job action. Forecasts for 2026/27 onwards are based on the adjusted 2025/26 forecast of 38,500 FTEs.
3 Service delivery agency FTE amounts do not include education and health sector organizations (SUCH sector) staff employment, per requirements of the  Budget Transparency and Accountability Act.
4 The total FTEs for 2025/26 is based on the forecast, which includes the impacts of job action.
5 Population per FTE is calculated using July 1 population (e.g. population on July 1, 2026 divided by 2026/27 FTEs).
Full-time equivalents (FTEs) are a measure of staff employment. FTEs are calculated by dividing the total hours of employment paid for in a given period by the number of hours an individual, 
full-time person would normally work in that period. This does not equate to the physical number of employees. For example, two half-time employees would equal one FTE, or alternatively, three FTEs may 
represent two full-time employees who have worked sufficient overtime hours to equal an additional FTE.

--- page 179 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 169
APPENDIX
Table A14   Capital Spending – 2019/20 to 2028/29
($ millions)
Actual 
2019/20
Actual 
2020/21
Actual
2021/22
Actual
2022/23
Actual 
2023/24
Actual 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Taxpayer-supported:
(per cent)
Education
Schools districts …………………………………
877
          
944
          
1,001
       
934
          
874
          
1,199
       
1,377
         
1,503
       
1,395
       
1,046
       
2.0
Post-secondary institutions ……………………
936
          
904
          
899
          
1,071
       
1,227
       
1,527
       
1,484
         
1,657
       
1,488
       
1,281
       
3.5
Health …………………………………………………
1,009
       
1,162
       
1,555
       
1,915
       
2,998
       
3,226
       
3,713
         
3,796
       
3,924
       
3,385
       
14.4
BC Transportation Financing Authority ……………
955
          
1,285
       
1,364
       
1,823
       
2,263
       
3,013
       
4,027
         
4,791
       
4,382
       
3,513
       
15.6
BC Transit ……………………………………………
73
            
107
          
67
            
100
          
158
          
151
          
295
            
325
          
489
          
347
          
18.9
Government direct (ministries) ……………………
520
          
389
          
386
          
470
          
537
          
468
          
562
            
483
          
410
          
466
          
-1.2
Social Housing ………………………………………
355
          
572
          
642
          
357
          
587
          
603
          
775
            
914
          
959
          
794
          
9.4
Other …………………………………………………
47
            
65
            
88
            
85
            
128
          
192
          
234
            
195
          
70
            
53
           
1.3
Total taxpayer-supported ….............................
4,772
       
5,428
       
6,002
       
6,755
       
8,772
       
10,379
     
12,467
       
13,664
     
13,117
     
10,885
    
9.6
Self-supported:
BC Hydro ……………………………………………
3,082
       
3,207
       
3,475
       
3,919
       
4,263
       
4,015
       
4,288
         
4,760
       
4,839
       
4,991
       
5.5
Columbia Basin power projects ……………………
994
          
7
              
9
              
10
            
8
              
16
            
18
              
19
            
23
            
18
            
-36.0
BC Railway Company ………………………………
6
              
1
              
2
              
6
              
4
              
4
              
4
                
6
              
6
              
4
              
-4.4
ICBC …………………………………………………
62
            
100
          
54
            
41
            
64
            
43
            
178
            
113
          
60
            
61
            
-0.2
BC Lottery Corporation 1 ……………………………
102
          
73
            
90
            
95
            
84
            
100
          
98
              
95
            
90
            
90
            
-1.4
Liquor Distribution Branch …………………………
36
            
22
            
22
            
16
            
18
            
22
            
20
              
20
            
30
            
30
            
-2.0
Other 2 .................................................................
104
          
65
            
78
            
78
            
143
          
202
          
-
                 
-
               
-
               
-
              
n/a    
Total self-supported ………………………………
4,386
       
3,475
       
3,730
       
4,165
       
4,584
       
4,402
       
4,606
         
5,013
       
5,048
       
5,194
      
1.9
Total capital spending …………………………………
9,158
       
8,903
       
9,732
       
10,920
     
13,356
     
14,781
     
17,073
       
18,677
     
18,165
     
16,079
    
6.5
Per cent of nominal GDP: 3
Taxpayer-supported …………………………………
1.5
           
1.8
           
1.7
           
1.7
           
2.1
           
2.4
           
2.8
             
2.9
           
2.7
           
2.2
           
3.8
Self-supported ………………………………………
1.4
          
1.1
          
1.0
          
1.0
          
1.1
          
1.0
          
1.0
            
1.1
          
1.0
          
1.0
          
-3.5
Total …………………………………………...…
3.0
           
2.9
           
2.7
           
2.7
           
3.2
           
3.4
           
3.8
             
4.0
           
3.7
           
3.2
          
0.8
Growth rates:
Taxpayer-supported …………………………………
7.2
13.7
10.6
12.5
29.9
18.3
20.1
9.6
-4.0
-17.0
Self-supported ………………………………………
6.8
-20.8
7.3
11.7
10.1
-4.0
4.6
8.8
0.7
2.9
Total capital spending ………………………………
7.0
-2.8
9.3
12.2
22.3
10.7
15.5
9.4
-2.7
-11.5
Per capita: 4
Taxpayer-supported …………………………………
934
          
1,049
       
1,148
       
1,261
       
1,590
       
1,830
       
2,188
         
2,419
       
2,313
       
1,900
       
8.2
Self-supported ………………………………………
858
         
671
         
714
         
777
         
831
         
776
         
808
           
888
         
890
         
906
         
0.6
Total capital spending ………………………………
1,792
       
1,720
       
1,862
       
2,038
       
2,422
       
2,606
       
2,997
         
3,307
       
3,203
       
2,806
      
5.1
Real Per Capita Capital Spending (2025 $) 5 ………
2,161
       
2,059
       
2,168
       
2,220
       
2,539
       
2,662
       
2,997
         
3,239
       
3,077
       
2,643
       
2.3
Growth rate (per cent) ………………………………
2.7
-4.7
5.3
2.4
14.4
4.9
12.6
8.1
-5.0
-14.1
1
2
3
4
5
Per capita capital spending is calculated using July 1 population (e.g. 2026/27 amounts divided by population on July 1, 2026).
Capital spending is converted to real (inflation-adjusted) terms using the consumer price index (CPI) for the corresponding calendar year (e.g. 2026 CPI for 2026/27 capital spending).
Capital spending as a per cent of GDP is calculated using nominal GDP for the calendar year ending in the fiscal year (e.g. 2026/27 amounts divided by nominal GDP for the 2026 calendar year).  
Forecasted amounts exclude right-of-use assets.
Includes post-secondary institutions' self-supported subsidiaries (actuals only, no forecast provided).

--- page 180 ---
APPENDIX
170 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A15   Statement of Financial Position – 2019/20 to 2028/29 1
($ millions)
Actual 
2019/20
Actual 
2020/21
Actual 
2021/22
Actual 
2022/23
Actual 
2023/24
Actual 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Financial assets:
(per cent)
Cash and temporary investments …………………
3,985
         
6,560
         
7,142
         
8,247
         
6,768
         
13,341
       
8,555
         
8,217
         
8,157
         
8,396
         
8.6
Other financial assets………………………………
12,413
       
15,413
       
17,109
       
19,074
       
22,057
       
24,071
       
27,517
       
30,245
       
31,540
       
32,916
       
11.4
Sinking funds .......................................................
692
            
492
            
510
            
521
            
491
            
562
            
363
            
376
            
412
            
451
            
-4.6
Investments in commercial Crown corporations:
Retained earnings  ………………………………
6,523
         
9,632
         
12,426
       
12,926
       
14,677
       
16,985
       
18,629
       
20,070
       
21,517
       
22,961
       
15.0
Recoverable capital loans  ………………………
24,768
       
26,301
       
27,218
       
28,037
       
30,572
       
33,577
       
35,736
       
38,706
       
41,118
       
43,695
      
6.5
31,291
       
35,933
       
39,644
       
40,963
       
45,249
       
50,562
       
54,365
       
58,776
       
62,635
       
66,656
      
8.8
Total financial assets…..........................................
48,381
       
58,398
       
64,405
       
68,805
       
74,565
       
88,536
       
90,800
       
97,614
       
102,744
     
108,419
    
9.4
Liabilities:
Accounts payable, accrued liabilities & others ……
13,100
       
14,733
       
18,509
       
25,400
       
23,769
       
24,395
       
24,154
       
24,268
       
23,862
       
23,031
       
6.5
Deferred revenue ……………………………………
9,895
         
11,557
       
12,796
       
14,494
       
15,082
       
16,213
       
17,721
       
19,319
       
20,124
       
20,890
       
8.7
Debt:
Taxpayer-supported debt ………………
46,229
       
59,750
       
62,341
       
59,888
       
75,402
       
99,089
       
116,540
     
142,897
     
166,906
     
189,019
     
16.9
Self-supported debt ………………………
25,932
       
27,350
       
28,325
       
29,492
       
32,060
       
34,788
       
37,519
       
40,477
       
42,949
       
45,540
      
6.5
Total provincial debt ……………………………
72,161
       
87,100
       
90,666
       
89,380
       
107,462
     
133,877
     
154,059
     
183,374
     
209,855
     
234,559
     
14.0
Add:
debt offset by sinking funds ……………
692
            
492
            
510
            
521
            
491
            
562
            
363
            
376
            
412
            
451
            
-4.6
Add:
foreign exchange adjustments …………
-
                 
-
                 
-
                 
472
            
494
            
2,434
         
1,803
         
523
            
815
            
443
            
n/a    
Less: guarantees & non-guaranteed debt ……
(1,337)
        
(1,335)
        
(1,402)
        
(1,523)
        
(1,476)
        
(1,639)
        
(1,789)
        
(2,277)
        
(2,437)
        
(2,851)
       
8.8
Financial statement debt ......................................
71,516
       
86,257
       
89,774
       
88,850
       
106,971
     
135,234
     
154,436
     
181,996
     
208,645
     
232,602
    
14.0
Total liabilities….....................................................
94,511
       
112,547
     
121,079
     
128,744
     
145,822
     
175,842
     
196,311
     
225,583
     
252,631
     
276,523
    
12.7
Net liabilities ……………………………………………
(46,130)
      
(54,149)
      
(56,674)
      
(59,939)
      
(71,257)
      
(87,306)
      
(105,511)
    
(127,969)
    
(149,887)
    
(168,104)
   
15.5
Capital and other assets:
Tangible capital assets ………………………………
50,104
       
52,861
       
56,142
       
59,818
       
65,583
       
72,736
       
81,961
       
92,213
       
101,653
     
108,662
     
9.0
Restricted assets ……………………………………
1,931
         
2,003
         
2,147
         
2,224
         
2,352
         
2,464
         
2,535
         
2,609
         
2,682
         
2,757
         
4.0
Other assets …………………………………………
1,100
         
1,582
         
1,791
         
1,347
         
1,701
         
2,096
         
2,134
         
2,272
         
2,256
         
2,362
        
8.9
Total capital and other assets...............................
53,135
       
56,446
       
60,080
       
63,389
       
69,636
       
77,296
       
86,630
       
97,094
       
106,591
     
113,781
    
8.8
Accumulated surplus (deficit) ………………………
7,005
         
2,297
         
3,406
         
3,450
         
(1,621)
        
(10,010)
      
(18,881)
      
(30,875)
      
(43,296)
      
(54,323)
     
Per cent of Nominal GDP: 2
Net liabilities …………………………………………
14.9
17.6
15.9
15.0
17.2
20.3
23.6
27.4
30.9
33.2
9.3
Capital and other assets ……………………………
17.2
18.4
16.8
15.8
16.8
18.0
19.4
20.8
21.9
22.5
3.0
Growth rates:
Net liabilities …………………………………………
7.5
17.4
4.7
5.8
18.9
22.5
20.9
21.3
17.1
12.2
n/a    
Capital and other assets ……………………………
4.8
6.2
6.4
5.5
9.9
11.0
12.1
12.1
9.8
6.7
n/a    
Per capita: 3
Net liabilities …………………………………………
9,026
         
10,461
       
10,843
       
11,185
       
12,920
       
15,395
       
18,519
       
22,660
       
26,430
       
29,336
       
14.0
Capital and other assets ……………………………
10,396
       
10,905
       
11,495
       
11,829
       
12,626
       
13,630
       
15,205
       
17,193
       
18,796
       
19,856
       
7.5
1
2
3
Net liabilities as a per cent of GDP is calculated using nominal GDP for the calendar year ending in the fiscal year (e.g. 2026/27 amount divided by GDP for the 2026 calendar year).
Figures have been restated to reflect government's current accounting policies.
Per capita net liabilities is calculated using July 1 population (e.g. 2026/27 amount divided by population on July 1, 2026).

--- page 181 ---
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
| 171
APPENDIX
Table A16   Changes in Financial Position – 2019/20 to 2028/29
($ millions)
Actual 
2019/20
Actual 
2020/21
Actual 
2021/22
Actual 
2022/23
Actual 
2023/24
Actual 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
10-Year 
Total
(Surplus) deficit for the year ………………………
531
            
5,615
         
(1,262)
        
(956)
           
5,035
         
7,347
         
9,614
         
13,309
       
12,165
       
11,437
       
62,835
     
Change in remeasurement (gains) losses ………
250
            
(907)
           
153
            
912
            
36
              
1,042
         
(743)
           
(1,315)
        
256
            
(410)
           
(726)
        
Change in accumulated (surplus) deficit ……………
781
            
4,708
         
(1,109)
        
(44)
             
5,071
         
8,389
        
8,871
         
11,994
       
12,421
       
11,027
       
62,109
    
Capital and other asset changes:
Taxpayer-supported capital investments …………
4,772
         
5,428
         
6,002
         
6,755
         
8,772
         
10,379
       
12,467
       
13,664
       
13,117
       
10,885
       
92,241
     
Less: amortization and other
accounting changes ……………………
(2,577)
        
(2,671)
        
(2,721)
        
(3,079)
        
(3,007)
        
(3,226)
        
(3,242)
        
(3,412)
        
(3,677)
        
(3,876)
        
(31,488)
   
Increase in net capital assets ..........................
2,195
         
2,757
         
3,281
         
3,676
         
5,765
         
7,153
         
9,225
         
10,252
       
9,440
         
7,009
         
60,753
     
Increase (decrease) in restricted assets ..............
97
              
72
              
144
            
77
              
128
            
112
            
71
              
74
              
73
              
75
              
923
          
Increase (decrease) in other assets .....................
148
            
482
            
209
            
(444)
           
354
            
395
            
38
              
138
            
(16)
             
106
            
1,410
      
Change in capital and other assets……………………
2,440
         
3,311
         
3,634
         
3,309
         
6,247
         
7,660
         
9,334
         
10,464
       
9,497
         
7,190
         
63,086
    
Increase (decrease) in net liabilities ....................
3,221
         
8,019
         
2,525
         
3,265
         
11,318
       
16,049
       
18,205
       
22,458
       
21,918
       
18,217
       
125,195
  
Investment and working capital changes:
Investment in commercial Crown corporations:
Increase (decrease) in retained earnings ……
785
            
3,109
         
2,794
         
500
            
1,751
         
2,308
         
1,644
         
1,441
         
1,447
         
1,444
         
17,223
     
Self-supported capital investments ……………
4,386
         
3,475
         
3,730
         
4,165
         
4,584
         
4,402
         
4,606
         
5,013
         
5,048
         
5,194
         
44,603
     
Less: loan repayments and
other accounting changes ………………
(2,165)
        
(1,942)
        
(2,813)
        
(3,346)
        
(2,049)
        
(1,397)
        
(2,447)
        
(2,043)
        
(2,636)
        
(2,617)
        
(23,455)
   
Change in investment ….......................................
3,006
         
4,642
         
3,711
         
1,319
         
4,286
         
5,313
         
3,803
         
4,411
         
3,859
         
4,021
         
38,371
     
Increase (decrease) in cash and
temporary investments …................................
956
            
2,575
         
582
            
1,105
         
(1,479)
        
6,573
         
(4,786)
        
(338)
           
(60)
             
239
            
5,367
       
Other working capital changes 1……………………
(1,531)
        
(495)
           
(3,301)
        
(6,613)
        
3,996
         
328
            
1,980
         
1,029
         
932
            
1,480
         
(2,195)
     
Change in investment and working capital ………
2,431
         
6,722
         
992
            
(4,189)
        
6,803
         
12,214
       
997
            
5,102
         
4,731
         
5,740
         
41,543
    
Increase (decrease) in financial statement 
debt ……………………………………………………
5,652
         
14,741
       
3,517
         
(924)
           
18,121
       
28,263
       
19,202
       
27,560
       
26,649
       
23,957
       
166,738
   
(Increase) decrease in sinking fund debt …………
60
              
200
            
(18)
             
(11)
             
30
              
(71)
             
199
            
(13)
             
(36)
             
(39)
             
301
          
Change in foreign exchange adjustments …………
-
                 
-
                 
-
                 
(472)
           
(22)
             
(1,940)
        
631
            
1,280
         
(292)
           
372
            
(443)
         
Increase (decrease) in guarantees ……………….
57
              
113
            
9
                
(227)
           
(80)
             
172
            
-
                 
500
            
100
            
400
            
1,044
       
Increase (decrease) in non-guaranteed debt ……
430
            
(115)
           
58
              
348
            
33
              
(9)
               
150
            
(12)
             
60
              
14
              
957
         
Increase (decrease) in total provincial debt ……
6,199
         
14,939
       
3,566
         
(1,286)
        
18,082
       
26,415
       
20,182
       
29,315
       
26,481
       
24,704
       
168,597
  
Represented by increase (decrease) in:
Taxpayer-supported debt ……………
3,548
         
13,521
       
2,591
         
(2,453)
        
15,514
       
23,687
       
17,451
       
26,357
       
24,009
       
22,113
       
146,338
   
Self-supported debt ……………………
2,651
         
1,418
         
975
            
1,167
         
2,568
         
2,728
         
2,731
         
2,958
         
2,472
         
2,591
         
22,259
    
Total provincial debt ……………………
6,199
         
14,939
       
3,566
         
(1,286)
        
18,082
       
26,415
       
20,182
       
29,315
       
26,481
       
24,704
       
168,597
  
1 Includes changes in other financial assets, sinking funds, accounts payable, deferred revenue and other accrued liabilities. 

--- page 182 ---
APPENDIX
172  |	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A17   Provincial Debt – 2019/20 to 2028/29
($ millions)
Actual 
2019/20
Actual 
2020/21
Actual 
2021/22
Actual 
2022/23
Actual 
2023/24
Actual 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Taxpayer-supported debt:
(per cent)
Provincial government
Operating ….....................................................
-
                 
8,746
         
7,233
         
-
                 
8,729
         
24,516
       
31,866
       
45,522
        
57,563
        
69,000
        
    n/a
Capital 1
   K-12 education…….......................................
9,757
         
10,529
       
11,342
       
10,893
       
11,643
       
12,563
       
13,674
       
14,910
        
16,065
        
17,013
        
6.4
   Post-secondary institutions…........................
4,917
         
5,426
         
5,732
         
5,502
         
5,979
         
6,663
         
7,408
         
8,194
          
8,995
          
9,658
          
7.8
   Health facilities…….......................................
6,705
         
7,484
         
8,223
         
8,286
         
10,109
       
12,559
       
15,274
       
18,014
        
21,048
        
23,957
        
15.2
   Ministries general capital……........................
3,133
         
3,702
         
4,087
         
4,549
         
5,084
         
5,552
         
6,082
         
6,567
          
6,977
          
7,444
          
10.1
   Transportation …….......................................
5,401
         
5,401
         
5,401
         
5,391
         
5,391
         
5,330
         
5,330
         
5,331
          
5,332
          
5,334
          
-0.1
   Social housing …….......................................
805
            
1,062
         
1,424
         
1,648
         
2,024
         
2,386
         
2,941
         
3,659
          
4,406
          
5,175
          
23.0
   Other ……......................................................
252
            
268
            
278
            
269
            
352
            
486
            
621
            
681
             
691
             
751
             
12.9
Total capital …..................................................
30,970
       
33,872
       
36,487
       
36,538
       
40,582
       
45,539
       
51,330
       
57,356
        
63,514
        
69,332
        
9.4
Total provincial government …...........................
30,970
       
42,618
       
43,720
       
36,538
       
49,311
       
70,055
       
83,196
       
102,878
      
121,077
      
138,332
      
18.1
Taxpayer-supported entities:
School districts ……………………………………
18
              
24
              
25
              
21
              
19
              
20
              
15
              
10
               
6
                 
4
                 
-15.4
Post-secondary institutions ………………………
753
            
882
            
922
            
910
            
897
            
976
            
1,000
         
1,060
          
1,061
          
1,099
          
4.3
Health Authorities & Hospital Societies….........
1,802
         
1,875
         
1,839
         
1,983
         
2,387
         
2,333
         
2,281
         
2,227
          
2,169
          
2,104
          
1.7
BC Transportation Financing Authority …………
12,193
       
13,321
       
14,615
       
18,946
       
21,286
       
24,078
       
27,979
       
32,959
        
38,216
        
43,338
        
15.1
BC Pavilion Corporation …………………………
135
            
132
            
129
            
126
            
123
            
119
            
116
            
112
             
108
             
104
             
-2.9
BC Transit ……………………......................….
65
              
60
              
56
              
53
              
109
            
119
            
135
            
206
             
444
             
421
             
23.1
InBC Investment Corp ……………………………
45
              
37
              
19
              
21
              
60
              
117
            
146
            
186
             
230
             
284
             
22.7
Social housing ……………………………………
222
            
770
            
974
            
1,241
         
1,182
         
1,237
         
1,642
         
2,729
          
2,967
          
2,324
          
29.8
Other 2………………………………………………
26
              
31
              
42
              
49
              
28
              
35
              
30
              
530
             
628
             
1,009
          
50.2
Total taxpayer-supported entities…...................
15,259
       
17,132
       
18,621
       
23,350
       
26,091
       
29,034
       
33,344
       
40,019
        
45,829
        
50,687
        
14.3
Total taxpayer-supported debt …………………………
46,229
       
59,750
       
62,341
       
59,888
       
75,402
       
99,089
       
116,540
     
142,897
      
166,906
      
189,019
      
16.9
Self-supported debt:
Commercial Crown corporations and agencies
BC Hydro …………………………………………
23,238
       
24,650
       
25,611
       
26,707
       
29,351
       
31,890
       
34,445
       
37,410
        
39,865
        
42,460
        
6.9
BC Liquor Distribution Branch …………………
210
            
233
            
230
            
242
            
233
            
233
            
205
            
209
             
271
             
288
             
3.6
BC Lottery Corporation …………………………
233
            
228
            
195
            
201
            
169
            
189
            
217
            
223
             
194
             
186
             
-2.5
Columbia Basin power projects …………………
1,387
         
1,349
         
1,319
         
1,298
         
1,265
         
1,227
         
1,195
         
1,171
          
1,152
          
1,133
          
-2.2
Columbia Power Corporation ……………………
276
            
271
            
266
            
270
            
266
            
259
            
251
            
242
             
232
             
221
             
-2.4
Post-secondary institution subsidiaries …………
504
            
520
            
615
            
685
            
682
            
896
            
980
            
980
             
980
             
980
             
7.7
Other ………………………………………………
84
              
99
              
89
              
89
              
94
              
94
              
226
            
242
             
255
             
272
             
13.9
Total self-supported debt ………………………………
25,932
       
27,350
       
28,325
       
29,492
       
32,060
       
34,788
       
37,519
       
40,477
        
42,949
        
45,540
        
6.5
Total provincial debt ……………………………………
72,161
       
87,100
       
90,666
       
89,380
       
107,462
     
133,877
     
154,059
     
183,374
      
209,855
      
234,559
      
14.0
1
2
Includes debt incurred by the government to fund the building and construction of capital assets in the education, health, social housing and other sectors.
Forecast includes potential provincial First Nation equity loan guarantees that may be authorized by Treasury Board under the First Nations Equity Financing program.

--- page 183 ---
	
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29	
|  173 
APPENDIX
Table A18  Provincial Debt Supplementary Information – 2019/20 to 2028/29 1
($ millions)
Actual 
2019/20
Actual 
2020/21
Actual 
2021/22
Actual 
2022/23
Actual 
2023/24
Actual 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Per cent of nominal GDP: 2
(per cent)
Taxpayer-supported debt:
Provincial government direct operating ……………
-
               
2.8
             
2.0
             
-
               
2.1
             
5.7
             
7.1
             
9.8
              
11.9
            
13.6
            
    n/a
Provincial government capital ………………………
10.0
           
11.0
           
10.2
           
9.1
             
9.8
             
10.6
           
11.5
           
12.3
            
13.1
            
13.7
            
3.5
Total provincial government....................................
10.0
           
13.9
           
12.2
           
9.1
             
11.9
           
16.3
           
18.6
           
22.0
            
24.9
            
27.3
            
11.8
Taxpayer-supported entities…................................
4.9
             
5.6
             
5.2
             
5.8
             
6.3
             
6.8
             
7.5
             
8.6
              
9.4
              
10.0
            
8.2
Total taxpayer-supported debt …………………
15.0
           
19.4
           
17.5
           
15.0
           
18.2
           
23.1
           
26.1
           
30.6
            
34.4
            
37.4
            
10.7
Self-supported debt:
Commercial Crown corporations & agencies ………
8.4
             
8.9
             
7.9
             
7.4
             
7.7
             
8.1
             
8.4
             
8.7
              
8.8
              
9.0
              
0.8
Total provincial debt ……………………………
23.4
           
28.3
           
25.4
           
22.3
           
25.9
           
31.2
           
34.5
           
39.3
            
43.2
            
46.4
            
7.9
Growth rates (per cent):
Taxpayer-supported debt:
Provincial government direct operating ……………
-
               
-
               
-17.3
-100.0
-
               
180.9
30.0
42.9
26.5
19.9
Provincial government capital ………………………
9.5
9.4
7.7
0.1
11.1
12.2
12.7
11.7
10.7
9.2
Taxpayer-supported entities…................................
6.0
12.3
8.7
25.4
11.7
11.3
14.8
20.0
14.5
10.6
Total taxpayer-supported debt …………………
8.3
29.2
4.3
-3.9
25.9
31.4
17.6
22.6
16.8
13.2
Self-supported debt:
Commercial Crown corporations & agencies ………
11.4
5.5
3.6
4.1
8.7
8.5
7.9
7.9
6.1
6.0
Total provincial debt ……………………………
9.4
20.7
4.1
-1.4
20.2
24.6
43.4
37.0
36.2
27.9
Per capita: 3
Taxpayer-supported debt:
Provincial government direct operating ……………
-
                 
1,690
         
1,384
         
-
                 
1,583
         
4,323
         
5,593
         
8,061
          
10,150
        
12,041
        
    n/a
Provincial government capital ………………………
6,059
         
6,544
         
6,981
         
6,818
         
7,358
         
8,030
         
9,009
         
10,156
        
11,200
        
12,099
        
8.0
Taxpayer-supported entities…................................
2,986
         
3,310
         
3,563
         
4,357
         
4,731
         
5,120
         
5,852
         
7,086
          
8,081
          
8,845
          
12.8
Total taxpayer-supported debt …………………
9,045
         
11,543
       
11,927
       
11,176
       
13,671
       
17,473
       
20,454
       
25,303
        
29,431
        
32,986
        
15.5
Self-supported debt:
Commercial Crown corporations & agencies ………
5,074
         
5,284
         
5,419
         
5,503
         
5,813
         
6,134
         
6,585
         
7,167
          
7,573
          
7,947
          
5.1
Total provincial debt ……………………………
14,119
       
16,827
       
17,347
       
16,679
       
19,484
       
23,607
       
27,040
       
32,470
        
37,005
        
40,933
        
12.6
Real Per Capita Provincial Debt (2025 $) 4 …………
17,031
       
20,145
       
20,202
       
18,169
       
20,425
       
24,109
       
27,040
       
31,805
        
35,551
        
38,561
        
9.5
Growth rate (per cent) ………………………………
5.0
18.3
0.3
-10.1
12.4
18.0
12.2
17.6
11.8
8.5
1
2
3
4 Debt is converted to real (inflation-adjusted) terms using the consumer price index (CPI) for the corresponding calendar year (e.g. 2026 CPI for 2026/27 debt).
Numbers may not add due to rounding.
Debt as a per cent of GDP is calculated using nominal GDP for the calendar year ending in the fiscal year (e.g. 2026/27 debt divided by nominal GDP for the 2026 calendar year).
Per capita debt is calculated using July 1 population (e.g. 2026/27 debt divided by population on July 1, 2026).

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APPENDIX
174 |
BUDGET AND FISCAL PLAN - 2026/27 to 2028/29
Table A19   Key Provincial Debt Indicators – 2019/20 to 2028/29
Actual 
2019/20
Actual 
2020/21
Actual 
2021/22
Actual 
2022/23
Actual 
2023/24
Actual 
2024/25
Updated 
Forecast 
2025/26
Budget 
Estimate 
2026/27
Plan 
2027/28
Plan 
2028/29
Average 
annual 
change
Debt to revenue (per cent)
(per cent)
Total provincial ..........…………………………
95.9
115.2
104.4
90.7
113.4
134.8
150.8
177.4
196.0
210.8
9.2
Taxpayer-supported .....………………………
80.6
101.4
90.9
74.3
97.9
122.7
141.8
173.2
195.3
213.5
11.4
Debt per capita ($) 1
Total provincial ..........…………………………
14,119
16,828
17,346
16,678
19,485
23,607
27,037
32,473
37,005
40,935
12.6
Taxpayer-supported .....………………………
9,045
11,544
11,927
11,175
13,672
17,473
20,453
25,305
29,431
32,988
15.5
Debt to nominal GDP (per cent) 2
Total provincial ..........…………………………
23.4
28.3
25.4
22.3
25.9
31.2
34.5
39.3
43.2
46.4
7.9
Taxpayer-supported .....………………………
15.0
19.4
17.5
15.0
18.2
23.1
26.1
30.6
34.4
37.4
10.7
Interest bite (cents per dollar of revenue) 3
Total provincial ..........…………………………
3.8
3.7
3.3
3.2
3.8
4.6
5.1
6.3
7.2
8.0
8.6
Taxpayer-supported .....………………………
3.1
3.1
2.8
2.5
3.2
4.1
4.9
6.2
7.3
8.2
11.3
Interest costs ($ millions)
Total provincial ..........…………………………
2,872
2,817
2,848
3,116
3,647
4,600
5,253
6,542
7,758
8,908
13.4
Taxpayer-supported .....………………………
1,807
1,832
1,896
2,032
2,444
3,278
4,019
5,154
6,249
7,279
16.7
Interest rate (per cent) 4
Taxpayer-supported .....………………………
4.1
            
3.5
            
3.1
            
3.3
            
3.6
            
3.8
            
3.7
            
4.0
            
4.0
            
4.1
            
0.1
Background Information:
Revenue ($ millions)
Total provincial 5 ............………………………
75,283
75,583
86,832
98,583
94,769
99,315
102,153
103,378
107,081
111,256
4.4
Taxpayer-supported 6 ..………………………
57,386
58,925
68,587
80,575
77,043
80,729
82,161
82,527
85,452
88,516
4.9
Debt ($ millions)
Total provincial ..............……………………
72,161
87,100
90,666
89,380
107,462
133,877
154,059
183,374
209,855
234,559
14.0
Taxpayer-supported 7 ..………………………
46,229
59,750
62,341
59,888
75,402
99,089
116,540
142,897
166,906
189,019
16.9
Provincial nominal GDP ($ millions) 8 ..............…
308,993
307,412
357,002
400,154
414,465
429,089
446,860
466,640
485,669
505,941
5.6
Population (thousands at July 1) 9 .......…………
5,111
         
5,176
         
5,227
         
5,359
         
5,515
         
5,671
         
5,698
         
5,647
         
5,671
         
5,730
         
1.3
1
2
3 The ratio of interest costs (less sinking fund interest) to revenue.  Figures include capitalized interest expense in order to provide a more comparable measure to outstanding debt.              
4
5 Includes revenue of the consolidated revenue fund (excluding dividends from enterprises) plus revenue of all government organizations and enterprises.
6 Excludes revenue of government enterprises, but includes dividends from enterprises paid to the consolidated revenue fund.
7 Excludes debt of commercial Crown corporations and agencies and funds held under the province's warehouse borrowing program.              
8
9 Population at July 1st within the fiscal year (e.g. population at July 1, 2026 is used for the fiscal year ended March 31, 2027).
Nominal GDP for the calendar year ending in the fiscal year (e.g. nominal GDP for 2026 is used for the fiscal year ended March 31, 2027).
Weighted average of all outstanding debt issues.
The ratio of debt outstanding at fiscal year end to provincial nominal gross domestic product (GDP) for the calendar year ending in the fiscal year (e.g. 2026/27 debt divided by 2026 nominal GDP).
The ratio of debt to population (e.g. 2026/27 debt divided by population at July 1, 2026).

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