Overview
- Finance Minister François‑Philippe Champagne’s plan adds C$89.7 billion over five years and projects a C$78.3 billion deficit in 2025–26, narrowing to C$56.6 billion by 2029–30.
- The budget pairs roughly C$56 billion in program and operating cuts with a planned reduction of about 16,000 federal positions and mandates department savings that rise from 7.5% next year to 15% by 2028.
- A new productivity “super deduction” and other incentives aim to accelerate corporate investment, with the government forecasting up to C$1 trillion in total investments over five years.
- Defence outlays climb sharply, with a stated path to 2% of GDP by the end of the fiscal year and targets of 3.5% for defence and 1.5% for defence‑related spending by 2035.
- Economists warn about rising debt‑service costs and public‑sector unions object to job cuts, while analysts flag that operating reductions could hit Atlantic Canada disproportionately.