Finance Minister François-Philippe Champagne presented his first federal budget on Nov. 4. The budget includes big-ticket items to prop up an economy facing major disruptions while also proposing cuts to the federal public service to help get the fiscal house in order.
The budget shows a deficit of roughly $78 billion for the 2025-26 fiscal year — a figure that is lower than some economists had expected.
The budget paints a gloomy picture of the country’s economic outlook — unemployment is up, business uncertainty has spiked, and productivity is weak. It also predicts the economy will grow, but not by much — about 1% a year for the next two years, well below projections made late last year.
“The level of uncertainty is higher than what we have seen and felt for generations,” Champagne said in his budget speech. “Bold and swift action is needed. To weather the storm of uncertainty, we will not lower our sails, that would be un-Canadian. Quite the opposite. We will raise them — to catch the winds of economic change.”
This budget proposes $141 billion in new spending over the next five years, which will partially be offset by $51.2 billion in cuts and other savings. The highlight of this budget is a $51-billion infrastructure program called Build Communities Strong Fund, which is designed to accelerate construction of everything from roads, ports, hospitals and medical schools to community centres, parks, and transit – though specific details on what will be funded has not been released.
The $115 billion infrastructure spending plan is significant for the aggregate industry, as it prioritizes projects like water and wastewater systems, transportation, and municipal infrastructure—all major users of stone, sand, and gravel—and includes upgrades to airports, schools, and hospitals that will further increase demand.
Budget highlights:
- $141 billion more over the next five years — offset by $51.2 billion in cuts and savings.
- A $78-billion deficit this fiscal year — lower than some economists had expected.
- $51 billion for infrastructure to spur development.
- Major projects like high-speed rail, new ports, carbon capture and storage face likely approval in the coming months.
- An $81-billion funding package for the Canadian Armed Forces — including a Buy Canadian procurement plan.
- The previously proposed emissions cap could be scrapped.
- Slashes in bureaucracy by nearly 40,000 jobs through buyouts, attrition.
Budget resources:
