B.C.’s deficit forecast up $450M to $13.8B after calculation errors on gas royalties
The British Columbia deficit forecast has grown by about $450 million to $13.8 billion, largely because of a "calculation error" on natural gas royalties.
The British Columbia deficit forecast has increased by approximately $450 million, reaching $13.8 billion, primarily due to an error in the calculation of natural gas royalties. Finance Minister Josie Osborne released the first quarterly report, which revealed $800 million more in revenue but also higher spending. The additional revenue stems from income and sales taxes, with wildfire fighting costs expected to rise by $614 million.
Refundable tax credits for businesses and renters saw an increase of $458 million. The Finance Ministry noted that businesses are adjusting to changes in global trade, with exports to countries like China, South Korea, and India growing by 16%. Overall, B.C. exports increased by 4.2% up to July 2026, largely driven by high demand for copper.
However, natural gas royalties are $531 million lower than initially forecast, largely due to an error in the price prediction from Budget 2026, which the government admitted was a "serious mistake" in calculating the natural gas price.
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