B . C . to cut 15 , 000 jobs but spending and debt to rise anyway

financialpost.com · Feb 19, 2026 · Collected from GDELT

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Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyWorkB.C. to cut 15,000 jobs but spending and debt to rise anywayB.C. estimated its economy will grow 1.3 per cent this year, slowing from 1.5 per cent in 2025Author of the article:Last updated 22 hours ago You can save this article by registering for free here. Or sign-in if you have an account.David Eby’s attempts at fiscal restraint come as Canada enters the second year of a trade war with the U.S., where the province has bee spared the brunt of tariffs compared with eastern provinces. Photo by Blair Gable/Postmedia filesBritish Columbia, Canada’s third-most populous province, will chop 15,000 public sector jobs, increase income taxes and delay investments, but its left-leaning government avoided making deep cuts to sprawling spending plans and expects debt to continue rising.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Accountor“This is not an austerity budget,” B.C. Finance Minister Brenda Bailey said at the province’s annual fiscal update in its capital city, Victoria.B.C. expects a deficit of $9.6 billion in the current fiscal year, ending March 31. Despite a hiring freeze and spending review, that shortfall is forecast to grow to more than $13 billion in the next fiscal year.FP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try again“You can’t cut your way out of a deficit,” Bailey added, defending a plan that sees annual expenses rise $8.5 billion by 2029, driven by spending in key ministries like health, which accounts for a third of the budget.Debt will increase to $234.6 billion by early 2029, from around $154.1 billion today. That means 8.2 cents of every dollar in revenue will be spent on interest, compared with 4.9 cents this year.The planned headcount cuts over three years affect 3.4 per cent of B.C.’s almost 600,000-strong public sector by 2029. The public workforce represents more than 10 per cent of the province’s population and includes state agencies for services like car insurance, liquor sales and electricity.Although B.C.’s ruling New Democratic Party inherited a surplus when it took power in 2017, it has overseen consecutive credit downgrades since Premier David Eby became leader in 2022.Eby’s attempts at fiscal restraint come as Canada enters the second year of a trade war with the U.S. B.C. is spared the brunt of U.S. President Donald Trump’s auto, steel and aluminum tariffs compared with eastern provinces, but has felt the impact of duties on lumber, a major employer in the province’s interior region. The government cited tough macro conditions as factors in its budget with investment uncertainty, volatile commodity markets, a slow housing market and rising costs.“We must assume this pressure on our revenue is the new normal and operate accordingly,” Bailey said in prepared remarks.B.C. estimated its economy will grow 1.3 per cent this year, slowing from 1.5 per cent in 2025. A fraught 2026 review of the Canada-United-States-Mexico-Agreement, which Trump signed in his first term but has recently mused about ending, was cited as a risk to its fiscal plan, along with U.S. tariffs themselves and global trade restrictions.B.C. will hike the tax rate on the lowest income-tax bracket to 5.6 per cent from 5.1 per cent, pause the indexation of tax brackets for three years, and hike taxes on home speculation and residences worth more than $3 million.It will also apply provincial sales tax to more professional services, including real estate and accounting. Those changes raise $757 million more tax in the upcoming fiscal year, rising to $1.5 billion the following year.“Despite significant new tax increases, the province’s fiscal situation continues on a perilous trajectory, with an eye-popping $80 billion to be added to the debt over the next three years,” said Bridgitte Anderson, chief executive of the Greater Vancouver Board of Trade.B.C. will also stagger capital spending projects it had planned as part of an infrastructure splurge on new rail transit, roads, hospitals and schools to address a growing population.Natural gas royalties are expected to rise to $1.6 billion in 2028-2029 from $942 million in the current fiscal year as new liquefied natural gas facilities come online.B.C. also announced that a $1 billion equity financing program for Indigenous groups, using tools like loan guarantees, will launch before summer. 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