BC Deficit Hits Record High as Election Looms
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BC is facing a record $8.9 billion deficit heading into the provincial election, with the total debt projected to exceed $129 billion. The province’s annual interest payments alone have reached $3.5 billion, or $9.6 million per day.
Premier David Eby, in an exclusive interview with Coastal Front, defended British Columbia’s growing deficit, dismissing calls for cuts to government spending. He stressed the importance of continued investment in infrastructure projects such as schools, hospitals, and transit to support future generations.
“We have to build the infrastructure our province needs,” he said, adding that while reducing these projects might lower the debt, it would be a short-sighted solution.
According to Eby, BC has seen significant financial strain due to global inflation, rising interest rates, and population growth. He noted that over 300,000 people have been added to the provincial health plan in the past two years, contributing to higher costs. Eby also pointed to BC’s fastest-growing GDP among major provinces as a sign that the province's long-term growth will support a return to balanced budgets “within the next term.”
When asked whether the province would seek to improve its credit rating, which has seen multiple downgrades in recent years, Eby reiterated that while maintaining a strong rating is important, it’s critical to balance this with “investing in the province’s future.” He stressed that BC still pays the second-lowest interest rate of any province in Canada and defended the infrastructure projects criticized by credit agencies.
Credit rating agencies have raised concerns over BC's rising capital spending, notably in relation to the province's investment in infrastructure projects. While these projects are intended to support long-term growth, agencies have flagged the high capital budget as a risk to the province’s fiscal stability, contributing to recent credit downgrades. Despite this, Eby maintains that these investments are necessary to build a sustainable future for the growing population.
Business leaders have expressed concerns about the deficit, with groups such as the Business Council of BC calling for clearer economic plans from all political parties. The business community has flagged high costs, public safety concerns, and a growing sense of economic instability as key issues going into the election.
In response to a request for comment, the Ministry of Finance deferred to Eby’s interview, signalling that his defence of infrastructure spending represents the government’s position on the rising deficit and debt.
