Budget 2025 marks one of the most ambitious — and perhaps most risky — federal budgets in recent years; bold in both scale and intent.

With a projected $78.3-billion deficit (2.5% of GDP), the government has clearly chosen to invest heavily in Canada’s short- and long-term productivity and competitiveness. Major commitments include tens of billions toward infrastructure, trade corridors, housing, and national defence, alongside new incentives aimed at encouraging business investment in technology and manufacturing, all while scaling back spending on the federal public service.

“Its focus on building Canada’s productive capacity reflects an effort to strengthen economic resilience and lay the foundation for future growth in an otherwise challenging time of economic uncertainty,” says Colin Fagnan, Executive Director of the Fort Saskatchewan & Lamont County Regional Chamber of Commerce.

While the direction is promising and the scale unprecedented in recent times, businesses and investors will be watching closely to see whether these measures translate into a more competitive and confident Canadian economy going forward. The oil and gas emissions cap, in particular, will attract additional attention as the government signals it may no longer be required under its new Climate Competitiveness Strategy.