Overview
- The plan adds C$89.7 billion in new spending over five years and targets roughly C$56 billion in savings from program and public‑service reductions.
- Ottawa pitches tax measures — including a broad “productivity super deduction” and ending the luxury tax on planes and boats — to catalyze private investment the government says could reach C$1 trillion.
- Defence, housing and trade‑corridor infrastructure anchor the package, alongside a new framework that separates capital from operating costs and aims to balance the operating budget within three years with a declining debt‑to‑GDP path.
- The budget forecasts weaker growth and rising debt charges and proposes shrinking the federal workforce by about 16,000 positions, with overall headcount trending toward 330,000 by 2028‑29 through attrition and restructuring.
- With the Liberals three seats short of a majority, Conservatives have balked at the larger deficit while some New Democrats have signaled potential abstentions that could allow the plan to pass.