Canada unveils Budget 2025 focused on national resilience

The Minister of Finance and National Revenue (Department of Finance Canada) tabled Budget 2025, presenting a generational investment plan that prioritizes national resilience, trade diversification, housing, infrastructure, defence, and productivity through specific fiscal measures and structural reforms.

• Main announcement and fiscal package: Budget 2025 commits one trillion dollars in total investment over five years, including 280 billion CAD in capital investment (450 billion CAD on a cash basis) and 115 billion CAD for infrastructure over 5 years, with flagship programs such as Build Canada Homes (13 billion CAD over 5 years), Build Communities Strong Fund, Arctic Infrastructure Fund, and a new Defence Investment Agency; the budget also targets 60 billion CAD in savings over five years, and sets a fiscal anchor to balance day-to-day operating spending by 2028–29. It introduces a new Capital Budgeting Framework, moves future budget timing to fall, and adopts a Buy Canadian procurement policy to prioritize domestic steel, aluminum and lumber.

• Context, implementation details and program-level items: The government launches several targeted measures including a 5 billion CAD Strategic Response Fund (tariff-affected sectors), a 1 billion CAD liquidity package for SMEs, 1.7 billion CAD International Talent Attraction Strategy, 30 billion CAD for defence over 5 years, a Trade Diversification Strategy with a Trade Diversification Corridors Fund (aiming to double overseas exports and unlock 300 billion CAD in opportunities), clean economy investment tax credits for hydrogen, carbon capture and clean electricity, and a new Digital Transformation Office to promote made-in-Canada sovereign AI tools; the budget also commits to hiring 1,000 border services officers and 1,000 RCMP personnel and emphasizes collaboration with provinces, territories, municipalities and Indigenous partners.