Overview
- Budget 2025 adds $89.7 billion in net new spending over five years and targets $56 billion in savings linked to shrinking the federal workforce by about 16,000 positions and trimming programs.
- The plan centers a new productivity super‑deduction and other tax measures that the government says could mobilize up to $1 trillion in private investment.
- Defence and security funding increases significantly alongside major infrastructure commitments, including national trade corridors and Arctic projects.
- Private forecasters now see real GDP growth of roughly 1.1% in 2025 and 1.2% in 2026, and analysts caution the fiscal path depends on planned savings and private investment materializing.
- Parliamentary dynamics shifted after Nova Scotia MP Chris d’Entremont crossed the floor to the Liberals, lowering the number of outside votes they need ahead of a Nov. 17 budget vote.