The federal government released Budget 2025 on November 4, calling it a “generational investment” and a plan to build the foundation of a new economy. It outlines $141 billion in new spending over five years, offset by $60 billion in cuts and savings. As billed, Budget 2025 is big on new spending. It’s also big on deficit, showing a hefty $78 billion expected gap (-2.5% of GDP) this fiscal year.
This budget focuses on ambition, with the federal government arguing that investment today will secure prosperity tomorrow. But for many Canadians, the question is not whether the country is ready for the future, but whether households can afford the present.
We wanted to unpack the details of this budget to understand what the government is trying to achieve, what it means for affordability, and how it impacts prosperity.
This is one of the largest spending plans in Canadian history. It directs most new funding toward long-term priorities such as, infrastructure, innovation, defence, and technology. There is no broad tax relief, no clear plan to bring down inflation, and limited help for families managing daily costs. The focus is on endurance rather than immediate relief.
Eighty-five per cent of new funding beyond next year is capital spending that will take years to deliver.
The budget introduces incentives for private investment, including a globally competitive corporate tax rate and new tools for co-investment in manufacturing, resource development, and AI infrastructure. The government also announced $84 billion for defense modernization, a $2– billion fund for the development of critical minerals, and new tax treatment for low-emissions LNG projects aimed at strengthening competitiveness on the West Coast. Also noted in the budget is to look for a likely end to the emissions cap and an extension of tax incentives for carbon capture.
Yes ambitious, but execution will be key. As the budget itself signals, Canada’s economic transformation depends on turning these ideas into viable projects and on attracting private capital and global investment to match.
Budgets rarely satisfy everyone, and this one is no exception. The Bloc Québécois said it offered “nothing for Quebec,” the Conservatives called it reckless overspending with little for affordability, and NDP Leader Don Davies offered cautious support, noting that delivery and accountability will be important for success.
As engaged women across Canada have told us, long-term plans matter, but so does affordability today. This budget will test whether Canada can balance both: building for the future while ensuring Canadians can keep pace in the present. Canada Powered by Women will be watching the upcoming vote closely, to see whether these commitments translate into tangible outcomes for affordability, energy reliability, and shared prosperity.