B.C.’s deficit forecast up $450M to $13.8B after calculation errors on gas royalties

The British Columbia deficit forecast has grown by about $450 million to $13.8 billion, largely because of a “calculation error” on natural gas royalties.

Minister Josie Osborne, who just took over the finance portfolio last month, released the first quarterly report today showing almost $800 million more in revenue, but spending was also up.

The added revenue comes from income and sales taxes but wildfire fighting costs are projected to be $614 million more and refundable tax credits for business and renters rose by $458 million.

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The Finance Ministry says businesses are adapting to changes in global trade, with exports rising by 16 per cent to destinations like China, South Korea and India.

It says the overall value of B.C. exports increased 4.2 per cent until July 2026, mostly due to a strong demand for copper.

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Natural gas royalties are $531 million lower, which includes a $306 million error from the price forecast in Budget 2026, which the government earlier called a “serious mistake” in the calculation of the price of natural gas.