B.C.'s Deficit and Debt: What the Numbers Actually Say

by Debbie Evans

B.C.'s Deficit and Debt: What the Numbers Actually Say

Policy Analysis · September 2026 · Debbie Evans, REALTOR® — westvanliving.ca

B.C.'s fiscal position has changed dramatically in four years. In the 2022–23 fiscal year, spanning the transition from Premier John Horgan to Premier David Eby, British Columbia finished with an audited $704-million surplus. Four years later, the latest forecast for 2026–27 is a $13.8-billion deficit.

That is the starting point for this article. How did B.C. move from a surplus to a multibillion-dollar annual deficit in four years? How much is the Province spending? How much debt has accumulated? And where is the money going?

The numbers below come from B.C.'s Public Accounts, provincial budgets and fiscal updates. Deficit, spending and debt are different measures, so this article separates them clearly before looking at what changed and what the government says is driving the increase.

2022–23

+$704M

Surplus

→

2026–27

−$13.8B

Deficit

Four Years

The Numbers: What the Government Says

Here's what the official B.C. Budget 2026 and government financial documents show:

The Question	The Number / Answer
What is B.C.'s latest projected annual deficit for 2026–27?	$13.8 billion (September 2026 First Quarterly Report)
What did Budget 2026 originally forecast for 2026–27?	$13.3 billion deficit; the September update increased this by $450 million
How much was B.C. budgeted to spend in 2026–27?	$98.8 billion (Budget 2026); the September quarterly report forecasts expenses approximately $1.2 billion higher
What is B.C.'s projected taxpayer-supported debt at end of 2026–27?	$141.1 billion (taxpayer-supported); $180.9 billion (total provincial)
Is a deficit the same as debt?	No — a deficit is this year's shortfall; debt is what's accumulated over decades
What did the 2024 B.C. provincial election actually cost?	$82.42 million for election readiness and delivery
How much additional funding did Elections BC request for the 2026 election?	$50 million in supplemental funding (a funding request, not the final cost)

Sources: B.C. Budget 2026 Fiscal Plan, Government of British Columbia Budget Documents, Elections BC

Deficit Is Not Debt: Here's the Difference

Key Distinction

A deficit is a single year's shortfall: what you spent minus what you collected. Debt is the total amount owed from all previous years' borrowing combined. B.C. runs a deficit most years and adds to its debt. But the deficit this year does not equal the debt this year.

Think of it this way: if you earn $100,000 and spend $110,000 in 2026, you have a $10,000 deficit for that year. But your total debt depends on how much you borrowed in all the years before. You might owe $500,000 from decades of spending more than you earned.

What the Government Says It's Spending On

According to B.C.'s budget documents, the province's spending focuses on:

Health services — the largest budget item, including hospitals, doctors, and healthcare administration
Education — K–12 schools, post-secondary institutions, and student support
Social services — housing assistance, child welfare, disability support
Infrastructure — roads, transit, water systems, and public buildings
Public service wages and benefits — salaries for government employees including teachers, healthcare workers, and civil servants
Debt servicing — interest on existing provincial debt

The province attributes the larger deficit primarily to higher spending in health and social services, combined with slower-than-expected revenue growth.

What We Actually Know From the Documents

Important Distinction

The numbers in the Budget 2026 are forecasts and projections, not final results. The province makes its best estimate of revenue and spending, but the actual numbers won't be known until financial results are audited and published. The September 2026 First Quarterly Report revised the full-year 2026–27 deficit forecast to $13.8 billion, $450 million higher than the $13.3 billion projected in Budget 2026.

Here's what is established by the official documents:

B.C.'s latest 2026–27 projected deficit is $13.8 billion (September 2026), up from Budget 2026's forecast of $13.3 billion
B.C. was budgeted to spend $98.8 billion in 2026–27; the September quarterly report forecasts expenses approximately $1.2 billion higher
Projected taxpayer-supported debt at end of 2026–27 is $141.1 billion; total provincial debt is projected at $180.9 billion
Interest payments on debt are increasing as debt grows
The deficit has grown for multiple consecutive years

These are the facts that appear in official B.C. government documents. Whether readers agree with how the money is being spent is a separate question from what the numbers actually show.

Frequently Asked Questions

Here are answers to common questions about deficits, debt, and provincial spending.

Why is the deficit projection changing between budget releases?

The 2026 Budget (February) forecast a $13.3 billion deficit for 2026–27. The September 2026 First Quarterly Report updated that to $13.8 billion—an increase of $450 million. This difference is mainly due to higher-than-expected spending in health and social services, plus revised revenue forecasts based on economic conditions. The province updates its forecast regularly based on actual year-to-date results and revised expectations.

Is B.C.'s debt bigger than its annual spending?

Yes. B.C. budgeted spending for 2026–27 is approximately $98.8 billion; projected taxpayer-supported debt at end of 2026–27 is $141.1 billion (total provincial debt is $180.9 billion). With deficits continuing at current levels, the debt will grow larger each year. The ratio of debt to spending is important for financial stability and credit ratings.

How does B.C. pay for a deficit?

The province borrows money by issuing bonds and other debt instruments. Investors (including pension funds, insurance companies, and individuals) buy these bonds. B.C. repays them over time with interest. This adds to the provincial debt.

What's included in "provincial spending" — is it just government wages?

No. Provincial spending includes all government operations: salaries, hospitals, schools, roads, welfare payments, debt interest, and much more. Approximately 50% of B.C.'s budget goes to health and education.

Can the province have a deficit forever?

Technically, governments can run deficits for extended periods if investors are willing to lend and interest rates remain manageable. However, persistent deficits eventually limit a government's flexibility because more revenue goes toward interest payments instead of programs. Rating agencies track this and adjust their assessments of credit risk.

Is B.C.'s deficit bigger or smaller than other provinces?

Other provinces' budgets vary. A direct comparison requires looking at both the deficit size and the size of each province's economy. B.C.'s deficit as a percentage of GDP is information found in federal government comparisons and budget analysis documents.

Sources

B.C. Budget 2026 Fiscal Plan — Official B.C. Budget 2026 Fiscal Plan, Government of British Columbia (February 2026).
B.C. First Quarterly Report 2026–27 — B.C. economy shows resilience in first quarterly report, B.C. Ministry of Finance (September 2026).
Provincial Debt Overview — Provincial Debt Overview, Government of British Columbia.
Elections BC 2024 Provincial Election Report — 2024 Provincial Election, Elections BC.
B.C. Public Accounts — B.C. Public Accounts, Government of British Columbia.

Debbie Evans | REALTOR® & Registered Interior Designer

eXp Realty | West Vancouver, North Vancouver, Vancouver, Squamish & Whistler

Financial literacy matters in real estate. Understanding how government fiscal decisions affect interest rates, housing policy, and economic conditions helps buyers and sellers make informed decisions about the B.C. market.

westvanliving.ca

This article is for informational purposes only and presents official government figures from public B.C. budget documents. It does not constitute financial or political advice. The numbers presented are government forecasts and projections; actual results will be confirmed when financial statements are audited and published. Readers should consult official government sources and qualified financial or political advisors for decisions based on this information.