British Columbia’s fiscal position has deteriorated sharply in recent years, raising questions about how the province will manage future spending priorities, including infrastructure and services that affect the broader economy.
According to an editorial by The Globe and Mail’s editorial board, published August 16, the province’s debt is projected to more than double over a half-decade, rising to $208.8-billion from $89.4-billion. The province’s debt-to-GDP ratio is also expected to climb dramatically, reaching 34.4 per cent by fiscal 2028 compared to 15.1 per cent in 2023 (The Globe and Mail, Aug. 16, 2025).
Surrey, B.C. cityscape. Photo by Nikolay Shubin/iStock.
Shift in fiscal management
The editorial attributes the worsening fiscal outlook to decisions made under Premier David Eby, who took office in the fall of 2022. While former premier John Horgan’s NDP government maintained relative fiscal stability even through the pandemic, the paper argues that Eby’s early spending decisions, including a $3-billion allocation in spring 2023, set the stage for soaring deficits.
The current deficit is forecast at $10.9-billion for fiscal 2025, a figure the editorial board suggests may worsen given the impact of external pressures such as U.S. tariffs and the cancellation of the provincial carbon tax.
Credit ratings and fiscal reputation
British Columbia’s credit rating has been downgraded multiple times as debt levels rise. While the provincial finance ministry has highlighted that B.C. still maintains a lower debt-to-GDP ratio than many provinces, The Globe and Mail editorial board cautions that the government is eroding this advantage at a rapid pace.
In fiscal 2023, the province’s taxpayer-supported debt equalled 15.1 per cent of GDP. By 2025, that figure had jumped to 23.2 per cent, with further increases projected.
Calls for a course correction
The Eby government has pointed to a spending review that it says will save $1.5-billion over three years, and has committed that the size of the public service will not “materially change.” However, the editorial argues that these measures fall short of what is required to stabilize the province’s finances.
“The longer that Mr. Eby waits, the harsher the fiscal reckoning will be,” the board writes (The Globe and Mail, Aug. 16, 2025).
For the hotel and tourism sectors, fiscal stability matters not only for investor confidence but also for government capacity to fund infrastructure and economic development programs. The trajectory of British Columbia’s debt could influence future policy decisions in areas such as transportation, housing, and workforce support, all of which play a role in shaping the province’s hospitality industry.
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