B.C. Budget: Finance minister delivers a sea of red ink and tax increases

February 18, 2026 - 08:36

Finance Minister Katrine Conroy has presented a provincial budget awash in red ink, projecting a substantial deficit of $13.3 billion for the upcoming fiscal year. The financial plan, aimed at funding core services while navigating economic pressures, introduces significant new revenue measures alongside spending constraints.

Central to the budget are tax increases expected to generate over $4 billion in additional revenue. These measures include a heightened property transfer tax for homes valued over $3 million and an expansion of the carbon tax to cover industrial emissions. The government asserts these steps are necessary to support its priorities in healthcare, housing, and climate action.

Concurrently, the budget outlines a plan to reduce the size of the public service by approximately 15,000 positions over three years. Officials emphasize this will be achieved primarily through attrition and natural turnover rather than widespread layoffs, aiming to streamline operations without directly cutting frontline services.

The minister acknowledged the difficult balance between fiscal responsibility and public investment, stating the government is choosing to support people amidst global uncertainty. The deficit projection reflects continued spending on key initiatives, including a significant boost to the healthcare system and new funding for affordable housing projects across the province. Opposition critics have immediately decried the budget's tax burden and deep deficit, setting the stage for continued debate on the province's fiscal direction.