British Columbia's forecasted deficit has hit a record high of almost $11.6 billion for the first quarter of the 2025-2026 fiscal year, largely due to the elimination of the carbon tax and amid "global trade uncertainty."

Finance Minister Brenda Bailey is also projecting higher deficits than she previously forecasted through to 2028 as growth slides, while the province's debt is predicted to spike by almost $60 billion over the next two fiscal years.

Bailey’s fiscal update released Monday revises gross domestic product growth down to 1.5 per cent from 1.8 per cent in 2025, and to 1.3 per cent from 1.9 per cent in 2026.

The projected deficit is almost $700 million higher than the government's original $10.9 billion set out in the last update.

“B.C.’s diverse economy and greater access t

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