Canada’s new government tabled its first federal budget Tuesday, describing it as a “generational investment budget” that aims to build a stronger, more self-sufficient economy while protecting Canadians from global uncertainty.
Budget 2025, titled Canada Strong, outlines a sweeping plan to transform the country’s economic foundation by reducing reliance on a single trade partner and investing heavily in housing, infrastructure, defence, and productivity. The government says the plan will shift resources from bureaucratic spending toward “nation-building infrastructure” and long-term economic growth.
“This is a generational investment budget — a confident Canada taking control of its future,” Prime Minister Mark Carney said on X. “This is a plan to build the future we want for ourselves — a plan to build Canada strong.”
The Department of Finance described the budget as a response to “a rapidly changing and increasingly uncertain world,” citing global disruptions, shifting trade systems, and challenges to the rules-based international order that have reshaped Canada’s economic landscape.
“In the face of global uncertainty, Canada’s new government is focused on what we can control,” the release stated. “Our plan builds on Canada’s strengths – world-class industries, skilled and talented workers, diverse trade partnerships, and a strong domestic market where Canadians can be our own best customers.”
Finance and National Revenue Minister François-Philippe Champagne said the new approach reflects the scale of the moment and the government’s determination to act boldly.
“The global uncertainty we are facing demands bold action to secure Canada’s future,” Champagne said. “Budget 2025 is an investment budget. We are making generational investments to meet the moment and ensure our country doesn’t just weather this moment but thrives in it. This is our moment to build Canada Strong and our plan is clear – we will build our economy, protect our country, and empower you to get ahead. When we play to our strengths, we can create more for ourselves than can ever be taken away.”
The budget projects $60 billion in savings and new revenues over five years through a Comprehensive Expenditure Review that aims to modernize government and improve efficiency. Those savings, combined with stronger capital investment, are expected to enable up to $1 trillion in total investments over the next five years.
The plan rests on two fiscal anchors: balancing day-to-day spending with revenues by 2028–29 and maintaining a declining deficit-to-GDP ratio. The government emphasized that Canada retains a strong fiscal position, noting the country’s lowest net debt-to-GDP ratio in the G7 at 13.3 per cent and a continued AAA credit rating.
“Countries across the world are facing global economic challenges – and Canada is no different,” the Finance Department said. “Budget 2025 is Canada’s new government’s plan to address these challenges from a position of strength, determination, and action. It is our plan to take control and build the future we want for ourselves, as a people and a country.”
The government says Canada Strong will empower Canadians with better careers, affordable living, and renewed national confidence — building, protecting, and empowering Canada for the generations ahead.
More details about the budget can be found, here.
