The B.C. government is forecasting a record $13.8 billion deficit for the 2026-27 fiscal year, $450 million higher than forecast in February, according to the province’s first-quarter fiscal update.
Finance Minister Josie Osborne, who took over the finance portfolio last month, presented the Q1 report on Sept. 14. Osborne replaced Brenda Bailey following Bailey’s diagnosis with early-stage cancer.
The province now expects to bring in $86.3 billion in revenue this year, $789 million more than forecast in Budget 2026. However, expenses are projected to be $1.2 billion higher than budgeted, offsetting the additional revenue.
In addition, natural-gas royalty revenue is now forecast to be $531 million below the Budget 2026 estimate. About $306 million of that reduction is attributed to a calculation error in the natural-gas price forecast used in the budget….