09:05 AM EDT, 09/17/2025 (MT Newswires) -- The Canadian province of British Columbia is projecting an $11.6 billion deficit, or 2.6% of gross domestic product, in the Q1 fiscal update, deeper than the $10.9 billion laid out in the 2025 budget, said Bank of Montreal (BMO).

This continues a lengthening run of B.C. posting deeper and more prolonged budget deficits, noted the bank.

The economy is performing somewhat softer than

expected, with real GDP growth revised down for 2025

(1.5% from 1.8%), while nominal growth saw a two-tick

trim to a "still-solid" 4.3%, pointed out BMO.

The biggest hit comes from the elimination of the

consumer carbon tax, which will carve just over $3 billion

per year from revenues over the upcoming three years.

Indeed, deficits are now tracking deeper right through the

forecast horizon, stated the bank.

All told, more of the same here. What was one of Canada's best fiscal situations continues to gradually weaken, added BMO.