The planned budget revenues are expected to amount to USD 507.5 billion. Canadian expenditures – USD 585.9 billion, and the deficit – USD 78.3 billion. When presenting the budget in parliament, Champagne emphasized that the good financial situation allows for investments. — Kanada has the lowest debt-to-GDP ratio among the G7 countriesand federal debt-to-GDP will remain stable over the budget horizon. We also have one of the lowest deficits among the G7 countries and one of the strongest financial positions in the world, said the minister.
The budget for the 2025/2026 fiscal year includes funds for the investments previously announced by Carney, which are intended to boost the Canadian economy. $51 billion for infrastructure is to be allocated to projects such as, among others: high-speed rail, roads, public transport, ports and carbon dioxide storage projects, but also, for example, healthcare infrastructure and parks. It was also included in the budget USD 925 million for a special fund financing the development of AI in Canada.
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What investments are included in Canada's budget?
How much money is spent on defense in Canada?
What is the ratio of defense spending to Canada's GDP?
What are the plans for immigration in Canada?
Canada begins modernizing its army. It invests in defense in the Arctic
$81 billion Canadians will receive the army. The government intends to modernize the army, incl increase defense investments in the Arctic. The draft budget states that Canada's defense spending level is 1.5%. GDP. Champagne assured that spending level 2 percent in relation to GDP Canada will achieve this year. The target for 2035 is 5%. GDP.
The Canadian Press quoted Christyn Cianfarani, president of the Canadian Association of Defense and Security Industries, an association of defense sector companies, who emphasized that after years of underfunding, defense issues have returned.
“Changes on a scale not seen since the fall of the Berlin Wall”
Champagne said on Tuesday during a press conference that changes in the world are taking place on a scale “not seen since the fall of the Berlin Wall.”
The government intends to reduce the number of officials state out of the current 368 thousand up to 330 thousand in 2028-2029.
Other planned cuts concern immigration. While, for example, immigration was previously assumed to amount to 516.6 thousand in 2026. people, then according to the changed plans it will be 370 thousand. people, and then there will be further reductions. According to an Environics Institute study published in October, 56 percent Canadians believe that Canada accepts too many immigrants. Champagne emphasized Tuesday that “Canadians understand that we have reached the limit of our ability (…) to welcome new arrivals.”
In Canada, a vote on the budget is also a vote on a vote of confidence in the government, and lack of support for the budget means new elections. The Liberal minority government was three votes short of a majority by Tuesday. On Tuesday, however, one of the Conservatives decided to switch to Mark Carney's party and the Liberals now need two additional votes.
