Particle.news
Download on the App Store
20 ARTICLES
·
4h ago

Carney Defends 'Bold' Budget as Critics Question Scale, Reallocation and a $78.3 Billion Deficit

Analysts cast doubt on the plan’s novelty, citing TD’s finding that much infrastructure funding is repurposed.

Image
Finance and National Revenue Minister Francois-Philippe Champagne reacts to an applause as he delivers the federal budget in the House of Commons on Parliament Hill in Ottawa, Tuesday, November 4, 2025. THE CANADIAN PRESS/Sean Kilpatrick
Spring 2020 graduates listen during a convocation ceremony at Simon Fraser University, in Burnaby, B.C., on May 6, 2022. THE CANADIAN PRESS/Darryl Dyck
Image

Overview

  • Launching a post-budget tour, Prime Minister Mark Carney framed Budget 2025 as an investment-focused response to global trade shocks and technological change, with a stated goal of attracting $1 trillion in private capital.
  • The plan outlines nearly $90 billion in net new spending over five years, a projected $78.3 billion deficit for 2025/26, and a federal debt-to-GDP ratio rising toward 43.1 percent by 2026/27.
  • A 10-year, $51 billion local infrastructure fund anchors the capital push, though TD Economics says only about $9 billion over five years is truly new money, reinforcing criticism that the package is not the 'generational' shift advertised.
  • Temporary tax measures include immediate expensing for capital investment and enhancements to the SR&ED credit, which economists view as a helpful but time-limited boost for business investment.
  • Parliamentary dynamics tightened after Nova Scotia MP Chris d’Entremont joined the Liberals, leaving the government within two votes of a majority as it seeks support or abstentions for an expected confidence vote later in November, with Bank of Canada Governor Tiff Macklem slated to face committee questions on Wednesday.