VICTORIA — The British Columbia government says it’s now projecting an $11.2 billion deficit this fiscal year, still a record but down from a projected $11.6 billion in its last quarterly report.

The Ministry of Finance says in its latest quarterly report released today that the province is projecting revenues to be $512 million more than previously forecast due to more corporate and personal income taxes.

But the report says other tax revenues are down, including $150 million less from property transfers, $100 million less in provincial sales tax, and $50 million less in tobacco tax.

Finance Minister Brenda Bailey says the province is “undoubtedly” feeling the pinch from American tariffs, and the government is focusing on new trade partners, major projects and reducing inefficiencies as B.C.’s economy is expected to grow at a “measured pace.”

The ministry’s first quarterly report, released in September, had projected a record deficit and was released amid a tumultuous time of “global trade uncertainty,” with U.S. tariffs putting a damper on the province’s gross domestic product.

The latest report lists several capital projects worth more than $50 million added since the last report, including the Simon Fraser University Medical School facility at $521 million and eight BC Hydro projects worth more than $1.2 billion.

This report by The Canadian Press was first published Nov. 27, 2025.

The Canadian Press