Overview
- The budget projects a $78.3 billion deficit in 2025–26 and outlines roughly $56 billion in savings over five years through operating reductions and program changes.
- A new productivity super deduction and other corporate tax incentives aim to catalyze private investment, with the finance minister forecasting up to $1 trillion in total investments over five years.
- Large capital allocations include about $115 billion for infrastructure and nearly $82 billion to rebuild the military, with funds for trade corridors and Arctic projects.
- Ottawa plans to shrink the federal workforce from its 2024 peak by about 40,000 positions, including 1,000 executives, and redirects programs by cutting foreign aid by $2.7 billion over four years, requiring some refugee health co-pays, ending the luxury tax on planes and boats, and cancelling the two‑billion‑trees pledge.
- With the Liberals three seats short of a majority, the budget faces a confidence vote as forecasters trim growth to roughly 1.1% in 2025 and 1.2% in 2026 and some opposition MPs weigh abstaining.