The B.C. government has tabled its budget for 2025, which projects a record-breaking deficit of $10.9 billion by the end of this fiscal year.
On Tuesday, February 4, Finance Minister Brenda Bailey presented the 2025 provincial budget in the Legislature, on the same day U.S. President Donald Trump implemented a 25 per cent tariff on all goods exported from Canada into the United States.
Affordability
One thing missing from Budget 2025 is the $1,000 grocery rebate promised by the government during its campaign for the October 2024 provincial election.
The province announced in February that it would not be moving forward with the grocery rebate as it prepared for the impacts of a trade war with the U.S.
Tackling affordability concerns was a key component of the B.C. NDP’s campaign promises last year, but in Budget 2025, the only new affordability measure introduced is a one-time $110 ICBC rebate, which is expected to cost the province $410 million.
Other affordability measures include raising the income threshold for the Rental Assistance Program from $40,000 to $60,000.
With this boost, the province says the average family in the program will see their supplement increase from $400 to $700 per month.
The threshold for the Shelter Aid for Elderly Renters program was also raised from $37,240 to $40,000, meaning the average supplement seniors receive will grow by 30 per cent, from $261 to $337.
The province also plans to raise the speculation and vacancy tax rate for foreign property owners to 3 per cent of their home’s value (up from 2 per cent) and from 0.5 per cent to 1 per cent for Canadian citizens and permanent residents.
These hikes take effect on January 1, 2026, and are expected to generate $47 million in revenue in 2027-28, which will be invested back into housing projects throughout B.C.
The B.C. Build program will receive a $318-million top-up over the next three years to support the development and delivery of more homes, in addition to the initial $198 million invested in the program last year.
Public Safety
The government has committed $325 million in new funding over the next three years to provide housing solutions for those living outdoors, address public safety, provide more resources to law enforcement, build capacity in the legal system to ensure timely access to justice, and continue supporting other public safety programs.
This includes a $90-million commitment over three years to expand the Homeless Encampment Action Response Team (HEART) and Homeless Encampment Action Response Temporary Housing (HEARTH) programs into new communities.
For public safety, new funding of $24 million has been allocated to improve timely access to justice, including improved capacity at the B.C. Supreme Court and enhanced security at the Vancouver Provincial Court at 222 Main St. in Vancouver.
It will also continue the expansion of virtual bail, improving access to justice and community safety.
Additionally, $15 million in new funding will be provided over three years to support assistance for victims, family members, and witnesses of crime.
Law Enforcement
Community safety programs are set to receive a total of $67 million in additional funding over three years. This includes a new community safety and targeted enforcement program pilot that specifically targets robbery crimes.
The additional funding aims to provide police with the tools to tackle street disorder and support safer downtowns and commercial areas across the province.
A total of $104 million in additional funding over three years will go toward policing programs, including the First Nations and Inuit Policing Program, as well as for negotiated wage increases for provincial RCMP detachments.
It will also support the National Body-Worn Camera Program, initiated in 2024, to improve transparency and accountability.
The province will also provide funding for the Justice Department of B.C. to expand its police academy training capacity from 192 to 288 officers per year.
Tariffs
Budget 2025 includes $4 billion in annual contingencies to prepare for the future, including the initial impact of tariffs.
Minister Bailey says the province will manage its finances carefully to ensure it can continue to improve health care, education, and other core services without adding fees or hiking costs.
The provincial deficit is slated to reach $10.9 billion in 2025-26 before declining to $10.2 in 2026-27 and $9.9 billion in 2027-28.
You can read the full budget document here.
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