B.C. capital budget shows $4 billion unspent on hospitals, transit, and highways

British Columbia has left approximately $4 billion unspent from its $15 billion capital budget for fiscal 2025-26—roughly 25 per cent of the total—revealing systemic delays across infrastructure projects including hospitals, transit, and highways.

Finance Minister Brenda Bailey distinguished the unspent money from cancelled projects, noting that affected initiatives are "still proceeding — but at slower speeds." She said the delays, which she termed "slippage," differ from deliberate project postponements. "The projects that are experiencing slippage, maybe it's a five-year build, and part of the build didn't happen in year two but will happen in year three as part of a longer project," Bailey explained.

Health care infrastructure accounted for $1.8 billion of the shortfall. The new St. Paul's Hospital, scheduled to open next year, saw $120 million in unspent allocation, while the new Cowichan District Hospital—also opening next year—recorded $119 million unspent. Smaller slippages of $78 million and $61 million affected Phase 1 of the Burnaby Hospital redevelopment and the new hospital and cancer centre in Surrey.

Transportation projects showed $1.2 billion in unspent capital spending. The Surrey rapid transit expansion recorded $178 million unspent, while Highway 1 improvements between Mt. Lehman and Highway 11 saw $117 million unspent. The Broadway subway project spent $105 million less than anticipated, and Highway 97 landslide repairs near Quesnel fell $108 million short.

Post-secondary and school projects also delayed spending: Vancouver Community College's Centre for Clean Energy and Automotive Innovation, alongside other post-secondary expansions, accounted for $350 million unspent. School districts deferred $116 million, including Burke Mountain Secondary in Coquitlam and the new East Side Elementary in Chilliwack.

Conservative finance critic Peter Milobar warned that delays will likely increase costs. "While the government insists that they are actually investing in British Columbia's infrastructure, they're actually continuing year over year over year, not delivering what they promise," Milobar said. The finance ministry notes that slippage is typical, with the province historically spending 70 to 75 per cent of allocated capital in any given year. However, data since 2020-21 shows the province has underspent annually—in 2020-21, it budgeted $7.126 billion but spent only $5.428 billion, leaving $1.698 billion unspent.

Jairo Yunis, director of policy for the B.C. Business Council, cautioned that the $4 billion figure signals overambition in budget planning. "When the same thing happens six years in a row, it's a pattern," he said. "The honest question is whether the province keeps budgeting a level of construction it has repeatedly shown it can't build."