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Finance Minister François-Philippe Champagne presented his first federal budget Tuesday, promising major investments to boost Canada’s economy while cutting public service jobs to balance finances. The 2025-26 deficit is projected at $78 billion, lower than some economists expected but still high.
The budget includes $141 billion in new spending over five years, partially offset by $51.2 billion in cuts and savings. Key investments focus on infrastructure, housing, the military, and business incentives to encourage Canadian-made production.
The government plans $51 billion for infrastructure projects such as high-speed rail, new ports, and carbon capture systems. Military spending will reach $81 billion over five years, with a focus on domestic procurement. Temporary foreign workers and student visas will be cut by nearly 50 per cent, and the Trudeau-era emissions cap may be scrapped.
Public service cuts will reduce staff from 368,000 to 330,000 by 2028-29. New programs include a $51-billion “Build Communities Strong Fund,” a $13-billion housing agency, and funds for AI, critical minerals, and low-carbon energy projects.
Experts say the budget shifts focus from social programs to industrial and economic growth, aiming to make Canada more competitive amid global uncertainty.
Hastings—Lennox and Addington—Tyendinaga MP Shelby Kramp-Neuman shared in a statement, “Canadians expected this budget to show fiscal responsibility and real solutions to our most pressing challenges; reducing government spending, increasing housing supply and tackling the inflation that
continues to drive up the cost of living for far too many of our friends, families and neighbours. Unfortunately, this budget falls short. Instead of a plan for stability and prudence, the government has announced record-high deficit spending.”
“As presented, this budget does not serve the best interests of Canada, her industries or the people of Hastings—Lennox and Addington—Tyendinaga. Unless meaningful changes are made, I cannot support it and will be voting against it when it reaches the floor of the House of Commons.”
myFM will have more from MP Kramp-Neuman in the coming days.
Written by Emily Chatwood
