Dan Knight

Spending is up, debt is exploding, and taxpayers are footing the bill—how David Eby’s reckless economics just pushed British Columbia one step closer to the brink.

So here’s something they’re not going to explain on CBC—British Columbia just got slapped with yet another credit downgrade. Actually, two. On April 2nd, both S&P Global and Moody’s—two of the most powerful financial watchdogs on the planet—downgraded B.C.’s credit rating. And not by accident. This wasn’t a glitch in the system or some market hiccup. This was a direct consequence of political recklessness.

Let’s talk numbers. S&P cut B.C.’s rating from ‘AA-’ to ‘A+’. Moody’s dropped it from ‘aa1’ to ‘aa2’. That’s the fourth downgrade in four years. Four. This is a province that used to hold AAA status—the financial gold standard. That means British Columbia was once considered one of the most fiscally stable jurisdictions not just in Canada, but globally. Not anymore.

Even more alarming? S&P didn’t just hit their long-term rating—they downgraded the short-term rating too, from ‘A-1+’ to ‘A-1’. Why? Because even in the short term, B.C. is starting to look like a risk. A liquidity risk. That means the money might not be there when it’s needed. That’s a red flag for anyone with a calculator and a memory longer than five minutes.

This is not some vague bureaucratic move. This is a direct indictment of the NDP’s economic policies in British Columbia. This is what happens when you treat taxpayers like an ATM machine and the economy like a social experiment. And now, international financial institutions are officially saying what a lot of people have been screaming for years: B.C. is in serious fiscal trouble.

Causes: Spending, Deficits, and Revenue Pressure

The core driver behind the downgrades is the ballooning of operating and capital deficits, coupled with aggressive government spending. According to B.C.’s 2025 budget, unveiled by Finance Minister Brenda Bailey on March 4, the provincial deficit is projected to hit $10.9 billion in 2025–26—up from $9.1 billion the previous year. Moody’s projects an even higher shortfall of $14.3 billion, raising red flags about B.C.’s ability to fund programs without unsustainable borrowing.

S&P cited the impact of reduced immigration levels and ongoing trade uncertainty as key headwinds, limiting economic growth and shrinking the province’s revenue base. Moody’s pointed to persistent budgetary gaps and limited progress on deficit reduction, highlighting the growing gap between revenue and expenditure.

Additionally, spending growth has significantly outpaced both population and inflation. Data from the Fraser Institute shows that between 2019/20 and 2024/25, program spending increased by 51.6%, whereas only 29.2% was needed to keep pace with demographic and price trends. This excess has pushed real per-capita expenditures to historic highs, without a corresponding rise in revenue.

Opposition Blames NDP Mismanagement for Downgrade

But what does that actually mean for real people—not bureaucrats, not lobbyists—but the mom on a fixed income buying groceries? So I reached out to John Rustad, leader of the Official Opposition in B.C., to ask exactly that.

“Two downgrades! Absolute disaster,” he told me. “Under David Eby, we’ve gone from a AAA status to a single A with a negative outlook. This government’s reckless spending and irresponsible management will have a devastating effect—not just today, but for generations to come.”

He’s not exaggerating. According to Rustad, by the end of this fiscal period, B.C.’s debt will have nearly tripled since the NDP took power. Let that sink in—tripled. And no, this isn’t just some abstract macroeconomic trend. This hits you. Directly.

Rustad laid it out. These downgrades mean higher borrowing costs for the province. That’s code for more taxpayer money getting funneled into interest payments instead of hospitals, schools, or—God forbid—tax relief.

“By the end of this fiscal plan, even before the downgrade and before the loss of billions in carbon tax revenue, interest payments were projected to hit $7 billion annually,” Rustad said. “That’s about 30% of personal income tax revenue—just to pay the interest.”

That’s money you send to Victoria every month—just lighting it on fire.

And with the downgrade? Expect to pay another $1 billion more in interest. That’s around $200 per person, per year. Not for roads. Not for services. Just to keep the debt monster fed.

Meanwhile, Premier David Eby—well, he’s had months to plan for replacing the carbon tax, and guess what? Still no plan. Rustad told me he expected Eby to raise industrial taxes to make up the difference, but even that hasn’t happened yet. For now, the hole is just growing—a $2 billion loss in carbon tax revenue on top of an $11 billion deficit.

So What Does This Mean for the Average Mom?

In response to a direct question about what this credit downgrade means for a mother living on a fixed income, Opposition Leader John Rustad laid out the long-term consequences in no uncertain terms:

“The average person will not notice this immediately. But what it does mean is higher borrowing costs, So with the massive deficit and debt, more money will need to be spent on interest payments. By the end of this fiscal, before loss of billions in carbon tax revenue and before the debt downgrades, interest payments would increase to about $7 billion by the end of the fiscal plan. To put that in perspective, that would be the equivalent of 30% or more of personal income taxes just to pay interest.”

He continued:

“The debt downgrades mean the province will have to pay more in interest—likely 1/4 to 1/2% more. On $220+ billion, that could mean $1 billion more in interest. That could be about $200 per man, woman and child annually in more interest by 2027.”

And with no plan to rein in spending, Rustad issued a stark warning:

“The compounding problem is: will this mean service cuts, more taxes, or yet more debt to be paid by our children?”

Final Thoughts

So here’s a question no one on CBC is going to ask: What actually happens when a progressive government can’t manage a budget? I’ll tell you. You get poorer. That’s what happens. You, the person who gets up every day and works a real job, pays the price while the people in charge keep living large off your labour.

Let’s walk through it. First, you pay provincial income tax—a tax just for working. Imagine that. You go out, earn a living, and the government takes a cut just because you dared to be productive. Then there’s the PST—you buy something, anything, and you get taxed again. Why? Because you had the audacity to participate in the economy.

And then there’s the carbon tax, the holy grail of progressive grifts. This wasn’t about saving the planet—it was about propping up the very same government that couldn’t manage a piggy bank, let alone a provincial budget. That tax was floating David Eby’s spending addiction. Now it’s gone, and surprise—there’s no plan to replace it. Just more debt, more interest, and more economic chaos.

But wait—here’s the part that really insults your intelligence. After taxing you into the ground, they turn around and say, “Don’t worry, we’ll give you a rebate.” A rebate? You mean you’re going to give me back a tiny fraction of the money you stole from me and act like you’re doing me a favour? Please. That’s not generosity—it’s gaslighting. It’s economic abuse wrapped in a government cheque.

And that’s why I keep saying it: fiscal responsibility matters. Because I’d rather have that money in my wallet, feeding my kids, paying my bills, building my future—than watching David Eby burn it on pet projects, political theatre, and bloated bureaucracy.

But here’s the thing—there is hope. It’s not all doom and despair. In the last election, something incredible happened. The BC Conservatives, a party written off by the elites and ignored by the media, pulled off a political miracle. They surged from obscurity to contention—why? Because regular people are waking up. Because the voters who pay the bills, raise the kids, and still believe in common sense are done being treated like ATMs for a government that doesn’t even pretend to respect them.

And maybe—just maybe—after a little more pain, after a little more David Eby-style financial recklessness, the voters of this province will finally realize why fiscal responsibility matters. Not because it sounds good in a press release, but because without it, your future vanishes. Your freedom shrinks. And the people in charge? They just keep spending.

So next time, when the ballots are counted and the smoke clears, maybe British Columbia will finally remember who this province belongs to—not to bureaucrats, not to activists, not to the political class in Victoria—but to you.

And that day can’t come soon enough.