B.C. Deficit Forecast Swells to $13.8 Billion Amid Natural Gas Royalty Error

The British Columbia deficit forecast has increased by $450 million to a record-breaking $13.8 billion, mainly due to an error in calculating natural gas royalties.

Finance Minister Josie Osborne released the first quarterly report on Monday, which showed almost $800 million more in revenue from income and sales taxes, but also higher spending. Wildfire fighting costs are projected to be $614 million more.

Osborne stated that if wildfire recovery costs were not included, the deficit would have been different, but the province will continue to defend against wildfires.

The Ministry of Finance attributed the lower forecasted royalties from natural gas to lower prices and a calculation error in Budget 2026, which they called a 'serious mistake.'