British Columbia's Provincial Fiscal Outlook Shows Increased Deficit, Rising Debt, BMO Says

07:23 AM EDT, 09/15/2026 (MT Newswires) -- The Canadian province of British Columbia released its first-quarter fiscal update on Monday, providing an overview of the current fiscal outlook, according to BMO Capital Markets in a note. The FY26/27 deficit is now forecasted at CA$13.8 billion, roughly CA$450 million above the initial estimate. This rise was primarily due to increased wildfire expenses and higher-than-anticipated claims for refundable tax credits, although stronger-than-expected tax revenues added an additional CA$900 million, BMO wrote in a Monday note. The provincial deficit is expected to be about CA$500 million deeper in each of the subsequent two years, said the bank. Economic forecasts for 2026 were revised downward due to softer housing and labor markets, although the outlook for subsequent years remains largely unchanged, excluding recent US tariffs and the Canadian countermeasures, added BMO. This fiscal year, taxpayer-supported debt is projected to be about 30% of gross domestic product and is forecasted to grow to 37% by FY28/29, according to the bank.