B.C. Budget 2026 Brief

British Columbia’s Budget 2026 is a plan built on disciplined choices to handle global economic uncertainty. The government is focused on protecting core services like healthcare and education while managing rising costs. To do this, they are making significant changes to how the province collects revenue and manages its workforce.

One of the most direct changes involves the provincial tax system. The first income tax bracket is increasing slightly from 5.06% to 5.60%. While this adds about $76 for the average taxpayer, an increase in tax credits means about 40% of people will actually see savings. Additionally, the PST is being expanded to include professional services like accounting and engineering, and exemptions are being removed for older services like basic cable and landlines.

On the infrastructure side, the province is committing $38 billion to major projects, including 17 hospitals and 66 schools. However, to combat inflation and rising construction costs, the government is "re-pacing" several projects. This means the timeline for several long-term care facilities and the Burnaby Hospital expansion will be adjusted to ensure the debt remains manageable.

Finally, the budget includes a major push for government efficiency. The goal is to reduce the public sector by 15,000 positions over the next three years. This won't involve cutting front-line workers; instead, the government will rely on attrition, voluntary departures, and a reduction in executive roles at Crown corporations. By tightening spending on travel and consulting, the province expects to save $3.5 billion over the course of the fiscal plan.