Overview
- The prime minister argued the plan will draw at least $1 trillion in public and private investment, while Bank of Canada governor Tiff Macklem endorsed the focus on private capital and urged faster, simpler approvals to entice investors.
- The budget forecasts a $78.3‑billion deficit in 2025/26 and a federal debt‑to‑GDP ratio near 43.1 percent, drawing warnings from economists about the absence of a credible path back to balance.
- Ottawa touts nearly $90 billion in net new spending over five years and a 10‑year, $51‑billion local infrastructure fund, though TD Economics and other analysts say much of the funding is reallocated rather than entirely new.
- Business measures include a temporary immediate‑expensing “productivity super‑deduction,” enhancements to SR&ED, expanded critical‑mineral credits, repeal of the underused housing tax, and another deferral of bare‑trust reporting rules.
- To help offset costs, the government plans to reduce the federal public service by about 40,000 positions as it seeks nearly $60 billion in savings, and the minority Liberals—boosted by Chris d’Entremont’s floor‑crossing—face a budget confidence vote the week of Nov. 17.