Overview
- Carney and Finance Minister François‑Philippe Champagne began selling the plan after tabling, with Carney arguing the budget’s investment impact will exceed its stated $1 trillion target by 2030.
- The fiscal plan adds roughly $90 billion in net new spending and projects a $78.3‑billion deficit for 2025/26, with federal debt rising to about 43.1% of GDP by 2026/27.
- Bank of Canada governor Tiff Macklem called the emphasis on crowding in private capital appropriate and flagged regulatory layers and slow approvals as key barriers to investment.
- The package includes a 10‑year, $51‑billion local infrastructure fund and business incentives such as first‑year expensing and SR&ED enhancements, though TD and other analysts say much of the infrastructure money is reallocated and only about $9 billion over five years is new.
- Internal savings target cuts about 40,000 public‑service jobs, while tax changes scrap the underused housing tax and drop the luxury tax on aircraft and vessels; a floor‑crossing by MP Chris d’Entremont gives the minority Liberals a slightly wider cushion ahead of a mid‑November confidence vote.