British Columbia’s projected deficit has widened by approximately $450 million to $13.8 billion, with a calculation error involving natural gas royalties accounting for a significant part of the increase.
Finance Minister Josie Osborne, who took over the portfolio last month, released the province’s first quarterly fiscal report on Monday. The update shows that B.C. is now expecting almost $800 million more in revenue, although that improvement is being outweighed by higher projected spending.
Additional revenue is coming primarily from income and sales taxes. At the same time, the province expects wildfire response costs to increase by $614 million.
Refundable tax credits for businesses and renters have also risen, adding another $458 million to projected spending.
The quarterly report also points to signs of resilience among B.C. businesses despite continuing changes in global trade conditions. The Finance Ministry says exports have increased by 16 per cent, with China, South Korea and India among the destinations recording stronger demand.
Overall, the value of B.C. exports was up 4.2 per cent through July 2026, with the increase driven largely by strong demand for copper.
Natural gas royalties, however, are moving in the opposite direction. The province now expects $531 million less in natural gas royalty revenue.
Of that reduction, $306 million stems from an error in the natural gas price forecast included in Budget 2026. The provincial government had previously described the mistake in its natural gas price calculation as a “serious mistake.”
The revised figures therefore leave B.C. facing a larger projected deficit despite stronger revenue expectations in several areas of the economy.
