In just a few years, British Columbia has gone from being one of the most fiscally sound provinces, with a low debt load and a stellar credit rating, to being in perhaps the weakest financial position of all major Canadian jurisdictions. Having dug itself into a very deep fiscal hole under the leadership of Premier David Eby, and with the economy already on shaky ground before the trade turmoil that erupted in early 2025, B.C.’s financial outlook is not only dismal — it looks poised to worsen.

Like other provinces, B.C. took a fiscal hit during the pandemic. But it emerged in solid financial shape and even posted two consecutive surpluses after 2020-21, buoyed by windfall revenues from the re-opening of the economy and record-high commodity prices.

This enviable fiscal position began to unravel in 2023-24. Spending and borrowing soared as revenue growth abated. The result was a $5 billion operating deficit, incurred at a time when the economy was still enjoying decent growth. The next year, government operating and capital spending became completely untethered from economic reality, with the deficit surging to a record $9.1 billion in 2024–25 and the province further........

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