VICTORIA – The British Columbia government says the final accounting for the budget year ending in March shows a deficit of $7.7 billion, more than three billion lower than forecast.
The latest fiscal update released by Finance Minister Brenda Bailey says the deficit was $3.3 billion below the estimate for fiscal year 2025-2026 because of higher revenues and lower spending on capital projects.
The government forecasted a deficit $10.9 billion when it released the 2025-2026 budget, but it says spending on hospitals, schools and post-secondary facilities dropped by around $4 billion due to “project scheduling changes.”
Bailey said earlier this year that government would be “re-pacing” several projects as part of a larger plan to trim back the deficit.
The update says revenues were $2.86 billion higher than previously budgeted, mainly due to the legal settlement with tobacco companies, which will pay $3.6 billion over 18 years.
The provincial debt, however, is up about $700 million from the previous forecast to $154.7 billion.
This report by The Canadian Press was first published Aug. 10, 2026.
