Canada’s new government says it’s taking decisive action to strengthen the country’s economy and protect its future in an increasingly unpredictable world.
Unveiled Tuesday, Budget 2025: Canada Strong sets out a plan to shift the economy from dependence on a single trade partner toward greater self-sufficiency and resilience against global shocks.
“This is our moment to build Canada Strong,” said Finance and National Revenue Minister François-Philippe Champagne. “We are making generational investments to meet the moment and ensure our country doesn’t just weather this period but thrives in it. When we play to our strengths, we can create more for ourselves than can ever be taken away.”
The government describes the budget as an “investment budget,” with less spending on operations and more on workers, businesses, and infrastructure that will grow the economy. Over the next five years, Ottawa says the plan will generate $60 billion in savings and revenues, enabling up to $1 trillion in total investments through housing, infrastructure, defence, and productivity initiatives.
“Budget 2025 is about building the future we want for ourselves — a stronger economy, stronger communities, and a more affordable life for Canadians,” Champagne said.
The government says the plan builds on Canada’s existing strengths — skilled workers, world-class industries, and a diverse domestic market — to create “an economy by Canadians, for Canadians.”
Here are some key figures as reported by The Canadian Press:
$20.1 billion: Total net new government spending for the 2025-26 fiscal year.
$89.7 billion: Total of net new budget spending items over five-year timeline of budget plan, including a projected $51.2 billion in cost savings.
$78.3 billion: The total deficit for this fiscal year — more than double estimates for last year.
Up to 40,000: The number of public service positions the government intends to eliminate over the next three years.
155,000: The number of student visas being issued in 2026, down from about 306,000 in the previous immigration levels plan.
42.4: The federal debt as a percentage of GDP for fiscal 2025-26.
$73 billion: The sum set aside for new defence spending, with $30 billion going to capital investments.
$5 billion: The amount earmarked over seven years for a national trade diversification corridor.
$1 billion: The sum set aside for Arctic infrastructure.
Zero: The number of updates the budget offers on where Canada stands on its 2030 and 2035 emissions targets.
$2.7 billion: Total cuts to foreign aid over four years.
3: The number of opposition votes or abstentions the Liberals must secure to pass the budget.
Written by: I. McAllum