Explainer: Key investments and new funding in B.C.’s 2025 budget

The B.C. government unveiled its 2025 provincial budget on March 4, aiming to strengthen health-care services, support local business, and help with creating affordable housing.

The budget shows that the province’s deficit has jumped to a forecasted total of $10.9 billion, beating 2024’s then-record deficit, which is now projected to be sitting at $9.1 billion.

Titled “Standing Strong for B.C.,” the budget includes actions to defend the province from the impact of President Donald Trump’s tariffs amid the ongoing trade war between Canada and the United States.

In her speech to the legislative assembly, B.C. Finance Minister Brenda Bailey said the government is introducing this budget “during the most consequential time in B.C. in generations.”

“Threats of unjustified tariffs could put tens of thousands of British Columbians out of work, significantly impact our province’s finances and cause economic harm to people and businesses on both sides of the border,” Bailey said in her speech.

The budget outlines a three-part response to the U.S. tariffs. Strengthening the economy, such as by expediting projects, diversifying trade markets for products so British Columbians are less reliant on American goods, and responding to the tariffs with “tough counter-actions and outreach to American decision-makers,” are actions included in the response, the B.C. budget website reads.

As part of this response, the province is promising to streamline major natural resource projects, which are worth an estimated $20 billion and will support about 8,000 jobs. For B.C. to move “forward on its goal to grow a more self-sufficient and diverse economy,” the 2025 budget also includes $172 million in new investments, the budget webpage reads.

The potential impacts of U.S. tariffs on B.C.’s economy include an up to $1.4-billion annual loss in revenue, 45,000 fewer jobs by 2029, and the provincial unemployment rate increasing to 6.4 per cent this year and 6.7 per cent in 2026. As of January 2025, the unemployment rate in B.C. is 6 per cent, WorkBC reported.

“While our economy is built to withstand this threat better than most provinces, the impact would still be severe,” Bailey said. “Budget 2025 is about standing strong for B.C. and making sure public services are there when we need them.”

The provincial government is also investing $7.7 billion over three years in health, education, and social services.

The budget allocates $4.2 billion to increase capacity in the health-care system and improve patient outcomes. An additional $15.5 billion over three years will go towards capital investments for new and upgraded facilities, including the new Surrey hospital and BC Cancer Centre in Cloverdale in addition to new facilities at Surrey Memorial Hospital.

“Here in B.C., communities are growing, people are getting older, and many doctors and nurses are retiring. Our government is confronting these challenges head on,” Bailey said.

The 2025 budget includes $500 million in new funding over three years to support addictions treatment and recovery programs, including Foundry, an initiative powered by BC Children’s Hospital that offers wellness services to young people.

Bailey said in her speech that this new funding builds off the province’s 2023 $1-billion investment in mental health and addictions care.

As for housing and improving access to rental homes, the province assigned $318 million to the BC Builds project, a provincial initiative introduced in 2024 to speed up the building of homes for middle-income British Columbians. 

The government also dedicated funding to help low-income families and seniors with their rent, investing $75 million in 2025-26 and $150 million more each year starting in 2026-27.

The provincial government has also set aside $142 million over three years to maintain highways and bridges, as well as support other critical transit services such as BC Transit and HandyDART.

Among the $15.9 billion in transportation capital funding, $6 billion will go to the Surrey Langley SkyTrain expansion and $3 billion for the Broadway Subway Project.

“When faced with big challenges, there are those who might say we should retreat and respond by cutting spending on the public services that people rely on,” Bailey said towards the end of her speech.

“But we know that this would only weaken the services we all need and drive up costs for people when they can least afford it.”

For information on the budget, visit www.bcbudget.gov.bc.ca.