B.C. government's projected debt in 2027/28 is more than four times what it was a decade ago--costing British Columbians billions

VANCOUVER, BC, Oct. 23, 2025 /CNW/ - The British Columbia government's projected net debt (total debt minus financial assets) in 2027/28 is more than four times higher than what the province's debt was in 2016/17, and that increased debt is costing British Columbians billions of dollars in debt interest payments every year, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"Just a decade ago, B.C. had among the lowest government debt of any province, but thanks to the provincial government's increased spending, that's no longer the case and British Columbians are paying the price," said Tegan Hill, co-author of The Opportunity Cost of BC Government Debt.

Nominal net debt (total debt minus financial assets) in the province is projected to reach $155.3 billion by 2027/28, up from $38.2 billion in 2016/17. To service that debt, the province will pay $5.1 billion in debt interest payments this year. That's money unavailable for other priorities, such as health care or tax relief.

For perspective, if B.C.'s net debt was zero this year, the PST rate (7.0 per cent) could be reduced to 3.65 per cent--nearly half--while still maintaining the same level of revenue for government. That would save single British Columbians $1,228 each annually, and $2,770 for every couple with two children.

In short, nearly half of the PST British Columbians pay each year amounts to the province's debt interest costs.

And, if program spending had only grown by inflation and population growth since 2016/17, net debt would have been $37.1 billion lower this year, and the PST rate could have been lowered to 5.9 per cent, saving $399 for each single British Columbian and roughly $902 for a couple with two children each year. 

"Government debt comes with real costs for British Columbians as taxpayer dollars are redirected to paying debt interest costs rather than other opportunities, such as tax relief," Hill said.

"British Columbians need to understand how much they're paying every year as a result of Victoria's ballooning debt."

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute

MEDIA CONTACT: Tegan Hill, Senior Economist, Fraser Institute; To arrange media interviews or for more information, please contact: Drue MacPherson, 604-688-0221 ext. 721, [email protected]