Capital spending, including the construction of homes and infrastructure, accounts for 58 per cent of this budget’s projected deficit. (Photo: Canada.ca)
Prime Minister Mark Carney has tabled the 2025 federal budget, titled Canada Strong: Budget 2025, which sees Ottawa prioritizing capital projects and spending in an aim to build resiliency and infrastructure across the country.
Prime Minister Carney’s budget projects a $78.3 billion total deficit for the fiscal year with a deficit-to-GDP ratio of 2.5 per cent, with these figures expected to to decrease to $56.6 billion and 1.5 per cent by 2029-30.
Capital spending, including the construction of infrastructure and homes, accounts for 58 per cent of this 2026’s projected deficit. This includes $213.8 million to the Major Projects Office over the next five years for the execution of projects to strengthen Canada’s autonomy, resilience and security.
In addition to $115 billion in infrastructure spending, including $50 billion allocated toward the construction of local infrastructure such as roads, transit, and public buildings, the budget also introduced two capital spending funds focused on increased infrastructure construction.
These funds include the Trade Diversification Corridors Fund, which provides $5 billion over seven years to the construction of port, railway and airport infrastructure, along with $1 billion over four years to Transport Canada in support of the Arctic Infrastructure Fund, which will go toward the construction of major transportation projects in Canada’s North.
The budget has also accommodated the economic uncertainty of the last several months by including economic forecasts based on both upside and downside scenarios. The upside scenario sees budgetary balance improving by a $5 billion per year average and the debt-to-GDP ratio rising to 45.3 per cent by 2028-29 before falling to 45.2 per cent by 2029-30.
Should trade uncertainty and its impacts persist, the government’s forecast sees the budgetary balance deteriorating by an average of $9.2 billion per year, with the federal debt-to-GDP ratio rising to 45.3 per cent by 2028-29 before falling to 45.2 per cent by 2029-30.
The Canadian Construction Association (CCA) commends the Liberals’ budget, but noted that the federal government must remain mindful accommodating both non-union workers among the large volume of projects budgeted for across the country.
“Union training programs play an important role in building Canada’s workforce, but we must ensure equitable access to training and credential recognition for all workers, including the 70 per cent of Canada’s construction workforce that is non-unionized,” said CCA CEO Rodrigue Gilbert. “If we want to build more homes and infrastructure faster, we need investments that don’t leave the majority of workers behind.”
The British Columbia Construction Association (BCCA) also released a statement in support of the 2025 Budget and its focus on investing in the country’s infrastructure, along with its plans to invest 97 million over five years to establish the Foreign Credential Recognition Action Fund to improve foreign credential recognition in the construction sector.
“The BCCA welcomes the federal government’s investments into construction and infrastructure in budget 2025,” the association said in a statement on LinkedIn. “These are important investments into the construction industry that will allow us to strengthen the resiliency of our industry and our nation’s infrastructure.”
