It’s budget day in British Columbia, with Finance Minister Brenda Bailey set to lay out the province’s fiscal priorities amid the massive uncertainty brought on by U.S. President Donald Trump’s tariffs.
The budget and fiscal plan, Bailey’s first as finance minister, will be about “setting us up to succeed” regardless of the tariff situation, she told reporters on Monday.
Trump followed through Tuesday with plans to slap Canada with tariffs of 25 per cent on goods and 10 per cent on energy.
“We’re protecting services, we are growing the economy, and we are focusing our spending,” Bailey said ahead of the budget.
“Three big priorities that work hand in hand to defend our quality of life.”
Through it all, Bailey acknowledged that “uncertainty and disorder” south of the border, and its spillover in B.C., appear unlikely to fade anytime soon.
Navigating the choppy waters of a trade war will be a major challenge for B.C.’s NDP government.
The province’s own numbers forecast tariffs could wipe out 124,000 jobs in the next three years, many in transportation and retail.
Corporate profits could fall between $3.6 billion and $6.1 billion per year, while government revenues could plunge between $1.6 billion and $2.5 billion.
“This is going to be one of the most challenging budgets ever for British Columbia,” Greater Vancouver Board of Trade president and CEO Bridgitte Anderson said.
“Before all of this tariff stuff happened, we had weak economic growth in British Columbia, we have low population growth now, we have projects completing.”
Anderson said the province’s business community will be watching for signals the government takes the situation seriously, including movement on speeding up permits, cutting red tape and addressing interprovincial barriers to trade.
Amid the souring economic climate, the NDP government also faces a predicament in the form of a slew of pricey election promises.
Premier David Eby’s promised $1,000 grocery rebate has already fallen by the wayside.
Yet to be seen is what will happen with big-ticket promises like education assistants for all K-3 classrooms, half a billion dollars for expanded $10/day child care and the extension of the Broadway subway to UBC.
BC Conservative finance critic Peter Milobar said he had “zero expectations” with regard to those promises.
“It sounds like the premier is trying to walk away from all of his election commitments,” he said.
“I recognize tariffs come to play now but we see other provinces actually following through on commitments with their budgets this year around tax cuts and other measures this government is now walking away from.”
Even before Trump’s tariff threats, B.C. was forecast to deliver a record-setting deficit in the ballpark of $9.4 billion.
British Columbians will get an updated look at those numbers at 1:30 p.m., when Bailey unveils her fiscal plan.