British Columbia Finance Minister Brenda Bailey says her inaugural budget was "very measured" rather than "splashy and new," in the early days of a trade war with the United States.
Bailey told members of the Greater Victoria Chamber of Commerce today that the budget drives economic growth by working to "unstick" things such as project development by cutting red tape to speed up the permit process.
Victoria Chamber of Commerce CEO Bruce Williams says he is pleased with the minister's pro-business approach but is concerned about the province's large debt.
Williams calls the budget "low key" and says the government isn't taking "a lot of chances on anything" during this disruptive time.
Jeff Bray, CEO of the Downtown Victoria Business Association, attended Bailey's speech and says the budget doesn't support growth for small to medium-sized businesses, the main source of B.C.'s economic activity and employment.
Bray says he's also disappointed that the government isn't making "strong and immediate" investments in mental health and addictions, issues that are affecting Victoria businesses.
This was Bailey's first public appearance after tabling the budget on the same day U.S. President Donald Trump imposed 25 per cent tariffs on Canadian goods.
Her budget forecasts a record deficit of about $10.9 billion in the next fiscal year starting April 1, while promising an insurance rebate for drivers of $110, and increases to both supports for families under the Rental Assistance Program and for elderly renters relying on the Shelter Aid for Elderly Renters program.
The budget comes with $4 billion in annual contingencies for each of the next three years to cover what Bailey called “unpredictable costs," including the province's response to the tariffs.
As industry and advocates get a look at the books, some are raising concerns about what was included and what was left out.
The Independent Contractors and Businesses Association calls the budget out-of-touch and says the deficit, rising debt, and trade war will have dire consequences for the economy and the construction industry.
The BC Council of Forest Industries says it is disappointed by the absence of dedicated support for the forestry sector, which will be particularly hard hit by the new tariffs at a time when the industry is already facing significant challenge amid the ongoing softwood lumber dispute.
Bailey told reporters on Tuesday that the budget will focus on education and health care, while also boosting a “self-sufficient economy.”
The Business Council of B.C. says it's concerned about "the ongoing deterioration in B.C.’s public finances" and what it considers the absence of a credible path to restore fiscal sustainability.
B.C.'s taxpayer-supported debt is projected to be $97.7 billion at the end of 2024-25, approximately $9.1 billion more than was projected in the budget from the previous year.
The deficit is expected to decrease to $9.9 billion by 2027-28.
