Overview
- The fiscal plan projects a 2025–26 deficit of C$78.3 billion, C$89.7 billion in net new spending over five years, and about C$56 billion in savings that include cutting roughly 16,000 federal positions and targeting a workforce of 330,000 by 2028–29.
- Ottawa proposes a “productivity super-deduction” and other tax incentives to spur business investment, with the government claiming these measures could unlock up to C$1 trillion in total investment over five years.
- Priority outlays include about C$115 billion for infrastructure, roughly C$30 billion more for defence and security over five years, and C$25 billion for federal housing initiatives.
- The budget is framed as a response to U.S. protectionism and tariffs, with private forecasters now expecting Canadian GDP growth of 1.1% in 2025 and 1.2% in 2026.
- Parliamentary dynamics tightened after Conservative MP Chris d’Entremont joined the Liberals, and a mid-November confidence vote looms as opposition parties signal skepticism and some NDP MPs consider abstaining.