B.C. adds $450-million to record deficit following math error, expensive wildfire season

Mike Hager Vancouver Published 3 hours ago Open this photo in gallery: B. Finance Minister Josie Osborne says wildfire fighting costs are projected to be $614-million more this year. CHAD HIPOLITO/The Canadian Press Comments Save for laterPlease log in to bookmark this story. Log InCreate Free Account British Columbia’s record budget deficit is now seen to be $450-million higher than previous estimates, and Finance Minister Josie Osborne chalked it up to factors including a math error that resulted in an earlier overestimation of natural-gas revenue and an expensive wildfire season. The additional $450-million brings the 2026 budget’s overall debt to $13.8-billion for the fiscal year that began in April, according to Monday’s fall update from Ms. Osborne, who took over the portfolio last month. Her ministry estimates $887-million more in income tax revenue will come in over the course of this budget year. But that was offset by the “serious mistake” the government first admitted to making last month when it miscalculated the amount of natural gas royalties by $306-million this year and in the next four fiscal years for a total of $1.46-billion. Osborne said, wildfire fighting costs are projected to be $614-million more this year and refundable tax credits for business and renters rose by $458-million. C. government overstates gas revenue forecasts by $1.46-billion due to errors She did not provide a timeline as to when the province may return to balancing its budgets as Premier David Eby promised before getting re-elected two years ago. “What’s different today then right after the 2024 election is the situation that we see ourselves in with respect to Trump and his administration and the unjustified actions that he has taken engaging in a trade war with Canada,” Ms. Osborne said. “This is not a situation we expected to see ourselves in, and it is one that requires government to staunchly defend and protect the services that people rely on – especially at a time of such economic uncertainty.” Mr. Eby inherited an almost $6-billion surplus from former premier John Horgan in 2022, but has since run deficits, leading to multiple bond rating agencies issuing downgrades to B. Despite the turmoil, the provincial Finance Ministry said businesses are adapting to changes in global trade, with exports rising by 16 per cent year-over-year to destinations like China, South Korea and India. Opinion: Fiscal fantasy: Believe it or not, fiscal reality hasn’t gone away Gavin Dew, the Opposition BC Conservatives’ finance critic, said the update does not engender confidence, noting his party is still calling on the NDP government to explain what Mr.