BC’s Finance Minister, Brenda Bailey, says Budget 2025 focuses on protecting services, growing the economy, and targeted spending.
The 2025 provincial budget is scheduled to be released on Tuesday, the same day US President Donald Trump plans to impose 25 per cent tariffs on Canada and Mexico, which he confirmed today (Monday).
In a media briefing this morning, Bailey said the provincial budget will “meet the moment” with investments and services British Columbians can rely on, adding that her government is committed to defending residents, workers, and industries against “these unjust tariffs.”
“The tariff threats are already hurting our economy, and industries are bracing for impact. It’s crucial that we bring business, labour, Indigenous leadership, and government to the table—and we’re doing just that. B.C. has what it takes, and tomorrow, you’re going to see a budget that sets us up for success, regardless of what happens.”
Bailey says Budget 2025 was built with the expectation that U.S. tariffs will be implemented—whether tomorrow, next month, or a year from now.
“This budget is designed to provide us with the initial steps we can take and the flexibility to move forward. It’s focused on protecting core services for people, sharpening our pencil on government spending, and, importantly, growing the economy—and that’s the approach we’ve taken.”
Maintaining priorities
When asked if residents should lower their expectations regarding her government’s election promises due to the looming tariff war, Bailey assured them that the province has not shifted its priorities.
“I think what’s important for people to know is that we have not stepped back from the priorities for British Columbians. In fact, we’ve continued forward with them. The things that matter most—such as healthcare, education, safety, and social services—are protected in this budget. At the same time, we’re sharpening our pencil and looking for efficiencies.”
One notable decision in Budget 2025 is the shelving of the $1,000 grocery rebate promised during the October 2024 provincial election. Bailey acknowledged that this was not an easy decision, but a necessary one, given shifting economic conditions.
“We fully intended to deliver it. But I can tell you that on November 25, when then-president-elect Trump posted that there would be 25 per cent tariffs across the board on Canadian goods and services, it changed our financial circumstances.”
She says that prior to November 25, the province was confident in its predictions of strong economic growth. However, in the face of a tariff war, it became no longer prudent to move forward with the grocery rebate commitment.
“It is disappointing. We know people are struggling with affordability. It was disappointing for us as well.”
Budget focuses
Budget 2025 prioritizes education, healthcare, social services, safety, and housing. At this point, Bailey says there are no significant program or funding cuts. However, she notes that the province is taking a closer look at efficiencies.
“You see us making decisions, for example, like a hiring freeze in the public service. That’s very important in terms of how we move forward. You’ll see that reflected tomorrow in the budget, along with additional work we intend to do to ensure that every dollar is landing where we intended it to.
“It’s normal to take time to assess: Have these programs landed where we thought they would? Are there areas where we could be more efficient? Are there places where the dollar isn’t achieving the results we intended? That’s part of the work we’re doing.”
Bailey couldn’t comment on how significant the province’s deficit is projected to be in Budget 2025, but she didn’t rule out the possibility of it exceeding $10 billion.
“I’m not going to rule out what the deficit number is—it’s coming soon. We are committed to getting on the road to balance, but it’s going to take time, and it’s going to take a successful budget to get there.”
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