VANCOUVER, B.C.: The Canadian Taxpayers Federation is calling on B.C. Premier David Eby to cut spending and pay down provincial debt after Moody’s Ratings hit B.C. with a credit rating downgrade today. 

“Eby’s bad budget is recklessly piling on debt and hiking taxes,” said Carson Binda, B.C. Director for the CTF. “Credit rating downgrades make it more expensive for the province to borrow money which means even bigger bills for taxpayers.” 

Moody’s downgraded B.C.’s credit rating from Aa1 to Aa2, with a negative outlook. 

Moody’s cited “a marked deterioration in the province's credit fundamentals” to justify the downgrade. “This deterioration is driven by continued growth in operating and capital spending, resulting in large, structural deficits,” it said.

“The latest budget confirms a deterioration in long-term fiscal management.”

Eby is planning to increase the provincial per-person debt from $27,000 at the end of 2025-26, to $40,900 by 2028-29. 

The provincial government is increasing spending by more than $4 billion this year. 

“Eby and the NDP are committing financial vandalism by racking up huge debts and increasing government spending,” Binda said. “The credit rating agencies are making it clear that Eby’s bad budgeting is unsustainable, but the premier and his cabinet have their heads buried in the sand.” 

Budget 2026 includes an income tax hike that will cost the average family $150 next year. It also expands sales taxes to a range of services including security guards, accountants and engineers. That PST expansion will cost taxpayers more than $200 million this year, jumping up to half a billion dollars per year in the future. 

“This government needs to put down the taxpayer credit card, pick up a pair of scissors and cut spending,” Binda said. “High taxes and bad credit chase away investment and jobs.” 

The province lost more than 20,000 jobs last month.