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BC Cuts 15,000 Jobs Amid Rising Debt
18 Feb
Summary
- British Columbia plans to eliminate 15,000 public sector jobs over three years.
- The province anticipates a deficit of C$9.6 billion for the current fiscal year.
- Debt is projected to increase significantly to C$234.6 billion within three years.
British Columbia's government has announced a fiscal update involving the elimination of 15,000 public sector jobs over the next three years. This measure affects approximately 3.4% of the province's public workforce.
The province expects a significant deficit of C$9.6 billion for the current fiscal year, with projections indicating this shortfall will widen to over C$13 billion in the upcoming fiscal year. Finance Minister Brenda Bailey emphasized that the budget does not constitute austerity, as annual expenses are slated to increase by C$8.5 billion by 2029, driven by investments in essential services like healthcare.
This fiscal strategy will lead to a substantial rise in public debt, which is forecast to reach C$234.6 billion within three years, a considerable increase from the current C$154.1 billion. Consequently, the proportion of revenue allocated to interest payments will grow from 4.9% to 8.2%.
These fiscal adjustments are being made amidst challenging macroeconomic conditions, including trade disputes with the US, volatile commodity markets, and a slow housing market. The government acknowledges the need to adapt to these pressures, forecasting economic growth of 1.3% for the current year, a slowdown from the previous year.
