Question Period Note: Budget 2025 (Government-wide)

What are the major areas of investment in Budget 2025?

• Budget 2025 lays out a clear plan to build a stronger, more resilient Canada, with targeted investments that support growth, security, and affordability.
• It proposes generational investments in housing ($25 billion), infrastructure ($115 billion), defence and security ($30 billion), and productivity and competitiveness ($110 billion).
• This will allow us to meet the moment and enable $1 trillion in total investments in Canada over the next five years.
• Budget 2025 also proposes over $25 billion for supports for workers and businesses.
• Budget 2025 also introduces long-term savings through a Comprehensive Expenditure Review, with reductions beginning in 2026–27 to ensure fiscal sustainability.

Presented on November 4th, Budget 2025 set out details of the government’s agenda, both in terms of investments and services, as well as for planned reductions.
Budget 2025 rests on two fiscal anchors:
• Balancing day-to-day operating spending while shifting spending toward investments that grow the economy; and
• Maintaining a declining deficit-to-GDP ratio.
Notable planned spending includes:
• Infrastructure investments which include major projects in transportation and energy.
• Defence and Security planned spending to enhance domestic capabilities. The proposed budget measures include the over $9 billion in 2025-26 announced by the Prime Minister in June 2025 and included in Supplementary Estimates (A).
• Increasing housing supply, especially for affordable and community housing.
New spending presented in Budget 2025 will follow different paths to approval:
• voted appropriations presented in Estimates and approved through appropriation acts
• statutory expenditures approved through other legislation, such as a Budget Implementation Act.; statutory expenditures are presented in Estimates for information only
• tax changes approved through changes to legislation or regulation
Budget 2025 also presented details of savings to be realized through the Comprehensive Expenditure Review. Reductions identified begin in the 2026–27 fiscal year and will be reflected in that year’s Estimates.

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