Home / Business and Economy / BC Slashes Jobs Amid Fiscal Crisis
BC Slashes Jobs Amid Fiscal Crisis
18 Feb
Summary
- British Columbia to cut 15,000 public sector jobs over three years.
- Provincial debt to climb to C$234.6 billion by early 2029.
- Government raises income taxes and delays investments to address deficit.
British Columbia is implementing significant public sector workforce reductions, targeting 15,000 job cuts over the next three years. This move is part of a broader fiscal strategy to address a substantial deficit and mounting debt.
The province's deficit is projected to reach C$9.6 billion for the current fiscal year, with an anticipated increase to over C$13 billion in the next fiscal year. Despite these cuts, the government emphasizes it is not an austerity budget, with annual expenses expected to rise.
Government finances are under pressure from factors including investment uncertainty, volatile commodity markets, and rising costs. To bolster revenue, BC will increase income taxes on the lowest bracket, halt tax bracket indexation for three years, and impose new taxes on high-value residences and certain professional services.
Provincial debt is forecast to escalate to C$234.6 billion by early 2029, a significant increase from its current level. This will lead to a higher proportion of revenue being allocated to interest payments. Capital spending on infrastructure projects will also be staggered.
Amidst these fiscal adjustments, BC will launch a C$1 billion equity financing program for Indigenous groups before summer. Natural gas royalties are anticipated to increase in the coming years with new liquefied natural gas facilities becoming operational.
