B.C. budget includes tax increases, 15K public job cuts, projected $13B deficit

[Dr Strangelove]

Although little new spending, B.C.’s finance minister says it’s ‘not an austerity budget’

A $13.3 billion deficit is forecast for the 2026/2027 fiscal year, up from $9.6 billion for this year. The government is forecasting deficits of $12.1 billion and $11.4 billion the following two years, with the province’s total debt expected to rise over the next three years from $154 billion to $235 billion.

- Projected deficit: $13.3 billion for 2026–27, rising from $9.6B this year.
- Deficits continue: Forecasts show $12.1B and $11.4B deficits in the following two years.
- Debt growth: Provincial debt expected to rise from $154B → $235B over three years.
- Finance Minister Brenda Bailey insists it is “not an austerity budget” despite cuts

Public Sector Jobs
- 15,000 public sector jobs cut over three years.
- About 2,500 from the core public service; the rest from crown corporations, health agencies, and schools.
- Government hopes many reductions come from retirements and hiring freezes.

- Delays or slowdowns for:
- Seven long-term care facilities
- Burnaby Hospital (Phase 2)
- UVic student housing
- Freeze on new $10-a-day childcare providers.

Income Tax
- Basic tax rate on the first bracket increases from 5% → 5.6% (first universal increase since 2008).
- Tax reduction credit increases by $115 (to $690)

Property & Housing Taxes
- Higher School Tax for homes assessed over $3M.
- Speculation & vacancy tax rises from 3% → 4%.
- Property tax deferment program becomes more expensive:
- Interest = prime + 2%, compounded monthly.

PST Expansion
PST now applies to:
- Professional services
- Clothing alterations
- Basic cable
- Landline telephone services

Most new spending was already announced earlier:
- $283M over three years for skilled trades programs
- $400M strategic investment fund
- Government frames this as “protecting services” rather than expanding them.

[Dr Strangelove]

[testerone]

As a lifetime NDP I find it appalling.
- even a small increase on the lowest bracket is unacceptable.
- might need to file hours of paperwork to remit $20-$50 of PST. And still claim their $75 PST rebate... (why not just get rid of that?)

Almost enough to drive me to the Mad Dogs gathered under the BC Conservative flag.