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BC Faces Record $13.3B Deficit, Tax Rates Increase

2/18/2026

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Story summary
  • British Columbia Finance Minister Brenda Bailey announced the 2026 budget, forecasting a record deficit of $13.3 billion for the upcoming fiscal year.
  • The budget raises the basic tax rate from 5% to 5.6% and expands the Provincial Sales Tax (PST) to professional services.
  • The government plans to delay infrastructure projects, including long-term care facilities and student housing.
  • Bailey says British Columbia remains one of the lowest-taxed provinces for working families.