February 17,2026
RED FM News Desk
British Columbia’s Budget 2026 aims to balance safeguarding essential services with stimulating economic growth amid ongoing financial uncertainty. The government is investing in health care, K-12 education, social supports, child care, mental health, and services for children with disabilities, while also expanding skills training and apprenticeship programs in the trades with $283 million over three years.
Key economic measures include a $400-million strategic investment fund, a temporary Manufacturing and Processing Investment Tax Credit, and extensions of maritime sector tax incentives. The budget also proposes modest tax increases, including a 0.6 percentage point rise in the first income-tax bracket and higher taxes on foreign owners, untaxed worldwide earners, and luxury homes over $3 million. Offsetting credits and programs aim to protect lower- and middle-income households.
Budget 2026 projects a declining deficit from $13.3 billion in 2026-27 to $11.4 billion in 2028-29 and maintains B.C.’s competitive debt-to-GDP ratio. Nearly $38 billion is earmarked over three years for hospitals, schools, and transit infrastructure, with a slowed capital plan to ensure long-term sustainability.
The budget has drawn criticism from business and opposition groups. The Greater Vancouver Board of Trade gave it a D rating, citing slow growth, higher taxes, and continued high spending, while B.C. Conservative Finance Critic Peter Milobar criticized the income tax increases as burdensome to families and seniors. Meanwhile, the Hospital Employees’ Union praised the continued funding for frontline health services amid growing demand.
Overall, Budget 2026 seeks to protect critical services, invest in economic and skills development, and improve public sector efficiency while carefully raising revenue and managing long-term fiscal challenges.
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