Today, the Surrey Board of Trade’s Interim Spokesperson and Policy & Research Manager, Jasroop Gosal, was in Victoria at the BC Budget lock up to hear the BC Government’s 2025 Budget and Three-Year Fiscal Plan before it was released to the public.
“This budget needed to support the economy, but it missed that mark,” said Jasroop Gosal. “Although there were some initiatives that will result in good return on investment for the economy, such as a review of government programs and initiatives, we are disappointed that the government did not further invest in the economy.
“Budget 2024 had a $7.911 billion deficit forecasted. Budget 2025 has an updated forecast of $9.135 billion deficit. The deficit will increase in 2025/26 and 2026/27 to $10.912 billion and $10.203 billion, respectively, before coming down to $9.863 billion in 2027/28.
“We were hoping to see tangible investments to help businesses pivot in the face of tariffs implemented by the United States President, but they were absent from this budget.
“We are pleased to see investments in Surrey prioritized. Surrey schools will be enhanced through capital and operational investments to address the budget shortfall that was predicted by the Surrey School District.
“We are happy that the Surrey-Langley Skytrain project will be fully funded with the Provincial Government increasing their portion of the investment to $4.441 billion.
“There are also significant investments towards the new Surrey hospital, upgrades to Surrey Memorial Hospital, and the new medical school at SFU Surrey.
“Moving forward, the Surrey Board of Trade and the South Surrey & White Rock Chamber of Commerce will continue to champion the economy for not only Surrey and White Rock businesses, but for businesses across BC.”
FISCAL SUSTAINABILITY:
- The Budget does lay out a plan towards fiscal sustainability by flattening the Province’s Debt-to-GDP ratio in the near term with a long-term goal of declining Debt-to-GDP once balanced operating results are achieved.
- All government programs and initiatives will be reviewed and optimized by ensuring programs will grow the economy.
- The government has also assumed no growth in the full time staff utilization for government ministries over Budget 2025 and is working to rationalize office space requirements and modernize government services.
SPECIFICS
- Budget 2025 projects DEFICITS (billions) of:
- $9.135 in 2024/25 (updated forecast)
- $10.912 in 2025/26 (budget estimate)
- $10.203 in 2026/27 (planned)
- $9.863 in 2027/28 (planned)
- Total capital spending (billions):
- $15.970 in 2024/25 (updated forecast)
- $20.202 in 2025/26 (budgeted)
- $20.382 in 2026/27 (planned)
- $19.327 in 2027/28 (planned)
- Total provincial debt at year end (billions):
- $133.016 2024/25 (updated forecast)
- $156.632 2025/26 (budgeted)
- $183.712 2026/27 (planned)
- $208.830 in 2027/28 (planned)
- Real GDP
- 1.2 per cent in 2024 (nominal at 4.1%)
- 1.8 per cent in 2025 (nominal at 4.3%)
- 1.9 per cent in 2026 (nominal at 4.3%)
- 1.9 per cent in 2027 (nominal at 4.2%)
- Revenue Forecast
Total government revenue is forecast at $82.9 billion in 2024/25, $84 billion in 2025/26, $85.7 billion in 2026/27, and $88.2 billion in 2027/28. The reason for tax revenue growth is due to population growth and economic activity. - Expense Outlook
Total expenses over the three-year fiscal plan are forecast at $92 billion in 2024/25, $94.9 billion in 2025/26, $95.9 billion in 2026/27, and $98 billion in 2027/28. - Contingency Allocations
$12 billion over the three-year fiscal plan for spending uncertainties related to new and existing programs and unforeseen events, such as the tariffs.
- Business Support
- Integrated Marketplace Initiative: $30 million over three years. Connecting sellers of emerging BC-based technologies with buyers at test sites to validate customer use cases and demonstrate early market adoption. Currently established at four sites (Vancouver International Airport, Prince Rupert Port Authority, Vancouver Fraser Port Authority, and Provincial Health Services).
- Increase to the interactive digital media tax credit from 17.5% to 25%, and makes the credit permanent.
- Increase to the investment limit for individuals through its small business venture capital tax credit and a temporary $15 million increase to the program’s budget for 2025-27.
- Film
- Film Incentive BC credits for Canadian content productions increase from 35% to 40%, retroactive to January 1, 2025, to support Canadian content. To support international projects made in BC, the production services tax credit is increasing from 28% to 36%. Projects claiming the production services tax credit with BC production costs greater than $200 million could get extra support, with a new 2% major production tax credit.
- Affordability
- $375 million in rental supplements.
- $318 million over three years towards the BC Builds program.
- Reducing Affordability
- Budget 2025 increases the speculation and vacancy tax rates. The rate for foreign owners and untaxed worldwide owners rises to 3% of their home’s value from 2%, and to 1% from 0.5% for Canadian citizens and permanent residents.
- Transportation
- $4.441 billion to construct the Surrey-Langley SkyTrain project.
- $4.148 billion to construct the Fraser River Tunnel Project, to be completed by 2030.
- Healthcare:
- $2.9 billion toward a net-new hospital and integrated cancer centre in Surrey.
- $85 million for a hemodialysis renal centre in Surrey Memorial Hospital, to be completed in 2025.
- $97 million for interventional cardiology and interventional radiology in Surrey Memorial Hospital, to be completed in 2025.
- $34 million for the interim space for the new medical school at Simon Fraser University in Surrey.
- Public Safety
- $67 million over three years will go toward community safety programs, including a new Community Safety and Targeted Enforcement Program pilot that will target robbery, shoplifting and other property crimes, providing police with tools to tackle street disorder and support safer downtowns and commercial areas in communities throughout BC.
- New funding for the Justice Institute of BC that will expand police academy training capacity from 192 to 288 officers per year.
- K-12 Education
- $79 million for an addition at Fleetwood Park Secondary School in the Surrey School District. The 800-student capacity addition will include a neighbourhood learning centre. The addition is expected to be completed in 2029.
- $370 million over three years in new investments for the Classroom Enhancement Fund, special education teachers, teacher psychologists and counsellors.
Read the full budget: bcbudget.gov.bc.ca
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Jasroop Gosal, 604-634-0345, jasroop@businessinsurrey.com
To safeguard businesses, SBOT and SSWRC is calling on the federal, provincial, regional and municipal governments to take immediate action, including:
- Creating a Canadian supplier directory to reduce reliance on US imports.
- Providing export training and tax relief for SMEs experiencing revenue loss.
- Reducing interprovincial trade barriers and enhancing global trade partnerships.
- Offering sector-specific strategies through direct industry consultation.
- Clarifying tariff implications for service-based businesses.
- Protect businesses by halting all taxation changes that would deter business growth.
- Immediately freeze all regulatory changes on industry that would add cost and red tape.
- Implement a strategic plan to ensure that businesses in the South Fraser Economic Region, which are particularly vulnerable to these tariffs as a result of the industries and proximity to the border, are provided with greater international trade support through the Surrey Board of Trade’s International Trade Centre.
