Today, BC’s Minister of Finance, Brenda Bailey delivered the BC Government’s 2025 Budget, amidst perhaps the most challenging economic circumstances BC has faced in decades, following the introduction of US tariffs of 25% on many Canadian exports.

Budget 2025 focused on 3 key priorities: preserving services to citizens, focusing resources on core services and growing the economy. It showed total expenses of in Fiscal 2026 of $94.9B compared to government revenues of $84B, resulting in a $10.9B deficit for 2025/26 and a Debt-to-GDP ratio of 26.7%. Pre-tariff GDP growth projections of 1.8% for Fiscal 2025 and 1.9% for Fiscal 2026 do not yet reflect the anticipated significant negative impact of tariffs on GDP.

In a careful Budget, prepared at a time of significant economic uncertainty there were few new spending commitments. But BC Tech was pleased to see:

• An additional $30M in funding from the Province for BC’s Integrated Marketplace Initiative. This program is administered by Innovate BC and operates at 3 test-bed sites – the Vancouver International Airport, the Port of Vancouver and the Port of Prince Rupert. The funding helps innovators offset the costs of developing tailored technology solutions for new commercial clients in projects at the test-bed sites.
• An increase in the Small Business Venture Capital Tax credit from a maximum of $120,000 to a maximum of $300,000 for investments made on or after 4 March 2025, and a $15M increase to the programs’ budget for 2025 to 2027.
• An increase in the Interactive Digital Media Tax Credit from 17.5% to 25% and – importantly – making it a permanent tax credit.

The behind-the-scenes Budget conversation in Victoria centered on controlling what we can control, diversifying the markets we sell to and buying more from Canadian companies. The Premier has made it clear BC’s government will be looking to prioritize buying from BC or Canadian companies and government is working to develop strategies to implement this, for example through the proposal evaluation process. Details will be published on the BC Bid website in due course.

One positive thing amidst all the gloom – never has this Government been more open to new ideas on how to grow the economy, build investor confidence and create jobs.  Through our participation in Premier Eby’s Trade and Economic Security Task Force, BC Tech has made a number of submissions and we will continue to participate actively in that forum.

Members with input to share please email hello@wearebctech.com.