Minister of Finance Brenda Bailey tables her first budget in the legislative assembly at legislature in Victoria, B.C., on Tuesday, March 4, 2025. THE CANADIAN PRESS/Chad Hipolito

VICTORIA - British Columbia cannot continue to accumulate debt and will "be in trouble" if the province doesn't work toward a balanced budget, its finance minister told a group of business people the day after forecasting another record deficit.

Brenda Bailey addressed the Greater Victoria Chamber of Commerce on Wednesday in her first public appearance after tabling the budget Tuesday, the same day U.S. President Donald Trump imposed 25 per cent tariffs on Canadian goods.

"We're carrying a heavy deficit and if we don't do the work to get back to a path of balance, we're going to be in trouble," Bailey said.

"We can't have the accumulation of debt continue."

B.C.'s business community has expressed concern about the province's record deficit and massive debt, particularly as Canada enters a trade war with the U.S.

"We've been expanding services for people over seven years and so now is the time to stop and take a look and ask the question, are we getting the results we wanted to get?" Bailey said.

"Are there ways that we can bring dollars back into the coffers? So, that work is going ahead."

Bailey said her inaugural budget provides some targeted, new investments "but nothing splashy and new." Instead, she called it a "very measured budget" that includes investments aimed at driving economic growth.

The budget includes plans to "unstick" things such as project development by cutting red tape to speed up the permit process, she said.

Victoria Chamber of Commerce CEO Bruce Williams said after listening to Bailey on Wednesday that he is pleased with the minister's pro-business approach but is concerned about the province's large debt.

Williams called the budget "low key" and said the government isn't taking "a lot of chances on anything" during this disruptive time.

Jeff Bray, CEO of the Downtown Victoria Business Association, said the budget doesn't support growth for small- to medium-sized businesses, the main source of B.C.'s economic activity and employment.

He's said he's also disappointed the government isn't making "strong and immediate" investments in mental health and addictions, issues that are affecting Victoria businesses.

Bailey's budget forecasts a record deficit of about $10.9 billion in the next fiscal year starting April 1, while promising an insurance rebate of $110 for drivers, 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.

The Independent Contractors and Businesses Association called the budget out-of-touch and said the deficit, rising debt, and trade war will have dire consequences for the economy and the construction industry.

Bailey told reporters on Tuesday that the budget will focus on education and health care, while also boosting a “self-sufficient economy.”

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.

This report by The Canadian Press was first published March 5, 2025.

News from © The Canadian Press, 2025