Today, BC’s Minister of Finance delivered the BC Government’s 2026 Budget. Against a backdrop of continued fiscal pressure, Minister Bailey nonetheless announced some important measures to support the growth engines of BC’s economy and BC Tech was pleased to see progress on a number of things we advocated for:

• On SRED, the province will match the federal government’s announced increases to the SRED threshold and rate and has removed the sunset date for provincial SRED, making it a permanent credit. SRED is a source of essential capital, especially for BC’s start-ups and growing tech companies.
• An additional $30 million in funding for skills training for specialized streams including engineering, computer science and aerospace.
• A new 15% manufacturing and processing investment tax credit for investments in qualifying buildings, machinery and equipment.
• A $400 million Strategic Investment Special Account – a mechanism that enables the province to quickly take advantage of opportunities to partner with the federal government on targeted economic projects.
• A consultation exercise in 2026 to explore with stakeholders and the federal government how a patent box regime or other changes to the tax system could help encourage commercialization of BC intellectual property.

Behind the scenes and in the press, the Budget conversation has centered heavily on successive projected multi-billion dollar deficits with a debt to GDP ratio of 30.6% this year, rising to an eye-watering 37.4% by 2028-29. The debt service cost this year will be $3.8 billion.

Looking under the hood at the detailed numbers that support Budget 2026, it is clear just how much of BC’s government revenue is dependent on jobs, people and the taxes they pay (such as personal income taxes, employer payroll tax, sales taxes, property transfer taxes and federal transfers of the equivalent federal taxes).

Post-secondary tuition fees contribute $2.6 billion to annual government revenue – a reminder of the critical importance of the sector to today’s shared prosperity as well as tomorrow’s economy. To put that in context, students are contributing nearly as much this year as natural resource revenue ($3 billion) or the combined total contribution of the three crown corporations that run the liquor control board, the lottery corporation and the insurance corporation ($2.9 billion).

It is clear that highly-skilled job creation and retention will be critical to the success of BC’s economy and the improvement of the BC government’s fiscal position. As the voice of BC’s tech sector and its 271,000 jobs, BC Tech will continue to advocate for policies that strengthen competitiveness and support long-term growth. At a time when fiscal pressures are high and economic strategy is evolving, it is critical that government hears directly from the companies who are building and scaling in BC.

Members with on-the-ground insights are encouraged to reach out: hello@wearebctech.com.