B.C. Budget Plans 15,000 Public Sector Job Cuts, Projects $13.3B Deficit

Victoria (Rajeev Sharma): The Government of British Columbia has unveiled a budget that includes plans to eliminate 15,000 full time equivalent public sector jobs by the end of the 2028/29 fiscal year as part of efforts to “right-size” government operations.

The reductions are expected to generate savings of $2.85 billion over three years. According to the province, the cuts will not target front-line services, and hiring in key areas such as education and health care will continue.

An estimated 2,500 positions will be cut from the B.C. Public Service, which staffs core government ministries and offices. The remaining 12,500 roles will come from other public sector bodies, including school districts, health authorities, Crown corporations and post-secondary institutions.

The budget document notes that specific targets will be developed to reduce executive positions, particularly within Crown corporations and the health sector.

Since 2020, the public sector workforce has grown by approximately 80,000 full-time-equivalent positions. The planned cuts represent about 3.4 per cent of the current workforce.

The government said it aims to achieve the reductions primarily through attrition and voluntary departures. However, early retirement programs and voluntary severance incentives may also be introduced to support the transition.

Finance Minister Brenda Bailey presented the 2026 budget, which projects $85.5 billion in revenue and $98.8 billion in spending, resulting in a record $13.3 billion deficit.

Additional savings of $3.51 billion are anticipated through broader “expenditure management” measures. Ongoing reviews of health authorities and post-secondary institutions are cited as examples of efforts to scrutinize spending and improve efficiency.

Government ministries and public sector employers have been directed to assess consulting fees, administrative costs and overhead as potential areas for savings. Sector-specific targets are expected to follow, with progress updates to be included in quarterly financial reports.

By Rajeev Sharma

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