B.C. Finance Minister Brenda Bailey brought the province’s fiscal roadmap to Kelowna on Thursday (June 5), addressing a business luncheon hosted by the Kelowna Chamber of Commerce and Okanagan College.
With a blend of candor and optimism, she outlined the challenges and strategies in the 2025 budget, which was released in March.
“We're in challenging times financially,” Bailey acknowledged. “It's really important that we focus on a couple of things. One is to make sure that government is moving in the direction of deficit reduction and living within our envelope, and we're doing that over a number of different budgets.”
The province projects a $10.9 billion deficit in 2025–26, with taxpayer-supported debt climbing from $97.7 billion to $166.5 billion by 2027–28—a 70 per cent increase.
In April, B.C. was hit with a financial wake-up call as two top credit rating agencies downgraded the province’s credit standing, raising red flags over soaring deficits and growing debt.
S&P Global Ratings and Moody’s Ratings both slapped a negative outlook on the province. Moody’s pointed to a “structural deterioration in British Columbia’s credit profile,” while S&P cited the lack of a concrete plan to steer the province back to balanced budgets.
Experts warn the lower ratings could drive up borrowing costs, making it more expensive for the province to fund public services and major infrastructure projects. Bailey put the rating changes in context within a global trend, including a U.S. treasury downgrade.
“We do know that B.C. continues to be competitive when we offer our sovereign bonds,” she said, reaffirming the government's commitment to returning to balance over successive budgets.
The minister also highlighted the importance of economic development to bolster revenue, pointing to Premier David Eby’s trade mission to Asia.
“This is a trade trip, trading opportunities for businesses to really enhance trade routes to Asia,” she noted.
Addressing B.C.'s reliance on the U.S. for 53 per cent of its trade, Bailey highlighted diversification efforts by the government.
“There's tremendous opportunity for us to diversify trade, both with being the gateway to the Pacific, but also within Canada,” she said.
To help the provincial economy get "unstuck," Baily referred to 18 projects being accelerated through the permitting process, many in clean energy, to attract investment and support job growth in B.C. Announced in February, the projects also include energy, mining, and critical mineral projects already in the pipeline.
To further entice investors, Bailey noted enhancements to the venture capital tax credit and initiatives in sectors like life sciences and critical minerals.
“BC actually has what people are looking for,” she added.
On interprovincial trade, Bailey said there are many areas where the provinces are united on trade and on how to grow the economy.
One issue that came up repeatedly during the question period after the minister’s speech was the province’s short-term rental regulations and their impact on tourism--a contentious issue in Kelowna. Bailey defended the measures.
“We've made the decision to really support bringing that housing back into the market for people.”
She noted that since implementing changes, rental rates in B.C. have decreased by five to seven per cent.
Wrapping up her comments, Bailey reiterated the dual focus of the budget—reducing the deficit while safeguarding essential services.
“It's really important that people have access to health care, that safety is a priority,” she said. “There are many, many core pieces we need to protect, but we also need to get on the trajectory back to balance.”
For more details on Budget 2025, visit the B.C. government website.
