Budget 2025: Remarks by the Minister of Finance and National Revenue

Check against delivery

Mr. Speaker, pursuant to Standing Order 83(1), I would like to table, in both official languages, the budget documents for 2025, including the notices of ways and means motions.

The details of the measures are contained in these documents.

Pursuant to Standing Order 83(2), I am requesting that an order of the day be designated for consideration of these motions.

Mr. Speaker, Honourable Members of this House, Canadians,

The budget I present today comes at a time of profound change. A time to build.

The world is undergoing a series of fundamental shifts at a speed, scale, and scope not seen since the fall of the Berlin Wall.

The rules-based international order and the trading system that powered Canada’s prosperity for decades are being reshaped – threatening our sovereignty, our prosperity, and our values.

Long-standing supply chains and trade relationships that once ensured stable growth, good jobs, and affordable products, are being disrupted.

The impact is profound—hurting Canadian companies, affecting workers, disrupting supply chains, and causing uncertainty that holds back investment.

The level of uncertainty is higher than what we have seen and felt for generations.

In fact, it is not a transition but a true generational shift.

The challenges are great, but the opportunities for Canada are even greater.

And in this spirit, today I present to you Budget 2025.

And as a former Finance Minister, also from Shawinigan, so eloquently put it:

“Let’s accept this role with humility, but also, with confidence.”

This budget must be generational in its ambition and serve to shape our economy and our nation’s future.

There is no place for withdrawal, ambiguity or even standing still.

Only for bold and swift action.

Bold and swift action is needed.

To weather the storm of uncertainty, we will not lower our sails, Mr. Speaker.

Quite the opposite. We will raise them – to catch the winds of economic change.

Because we believe in Canada.

We will explore new markets and sell more of the best of what Canada has to offer.

We will build here at home – stronger industries, nation-building infrastructures, and millions of more homes for Canadians.

We will protect what matters most: our people, our communities, and our sovereignty.

And, we will empower Canadians by making life more affordable, creating new career opportunities, and ensuring every generation can get ahead.

This is how we win, and keep winning.

When people look back on this budget, they will be able to judge the importance of the choices we have made.

Greater autonomy is and continues to be the best approach to achieve real resilience.

And it is in this spirit that, with Budget 2025, we are building Canada Strong.

Mr. Speaker, around the world, tariffs have increased, growth is slowing, and trade relationships are being tested.

All of these constraints are being felt across the country by Canadians in their daily lives.

Families are seeing it every week when they do their groceries, as well as renters when they pay their rent.

Young people are sending out their resumes, but they aren’t receiving any offers as a result of their efforts.

In factories, in the fields, and in communities across the country; people feel the current economic challenges.

Workers are facing fewer shifts, shorter hours, and in some cases, layoffs.

Small business owners want to grow, but uncertainty is understandably making them wait.

And for many, it feels like opportunity is slipping just a little further out of reach.

Mr. Speaker, these are the realities Canadian workers and their families are facing; they are doing everything they can to keep moving forward in uncertain times.

And through it all, the Canadian economy has held steady. Forecasters expect modest GDP growth of just above 1% in 2025.

The resilience of our people is earning us the respect of our foreign partners, and it is this same resilience that gives me confidence in the future.

When your largest trading partners fundamentally reshapes all of its trade relationships, there are two responses:

You can slash the deficit, hunker down, hope for the best, wait and see if the ‘trickle down’ ever comes.

That approach, to balance the Budget this year, would have to eliminate vital social programs, and all the capital investments needed for Canada’s future.

We choose a different path:

• That believes in Canada.
• That invests in our country’s future.
• That reinforces Canadian values.
• That makes us less reliant on the U.S.
• A plan that allows us, first and foremost, to be masters in our own house.

Because we believe in Canada.

Mr. Speaker, when our steel, aluminum, forestry, auto and agriculture industries were hit by U.S. tariffs and trade disruptions, we did not stand by and wait for the storm to pass.

We stepped in with the most comprehensive set of trade resilience measures in Canadian history.

The government launched the Strategic Response Fund – allocating 5 billion dollars to help sectors impacted by tariffs adapt, diversify, and grow.

Businesses can use the fund to invest in the design of new products, retool plants to boost productivity, or offset the costs of accessing new markets.

We have introduced a $1 billion liquidity relief package to help small and medium-sized businesses adapt, along with a new skills-retraining program that will benefit 50,000 workers.

To our steel workers, we will be there to help you increase your competitiveness within the Canadian market.

To our aluminum workers, we will be there to help you modernise your smelters and open up new markets.

To our auto workers, we will fight alongside you to keep auto plants in Canada.

And to our lumber and canola producers, we know times are hard, and we are working not only to restore your market access, but to expand it!

These strategic sectors are at the forefront of this generational change. We will ensure they are strong, resilient, and ready to lead our economic transition — from dependence to resilience.

These are generational challenges, Mr. Speaker, and they demand a generational response.

Budget 2025 is that response.

It is a plan for resilience. Rooted in confidence, focused on results, and designed to ensure that Canada not only weathers this storm, but emerges stronger from it.

I am reminded of the words of a previous Finance Minister, when in 1995, he presented his budget:

“Our very way of life as Canadians is being tested and there are times in the progress of people when fundamental choices must be made, and a new course charted. For Canada, this is one of those times.’’

And Mr. Speaker, I would say that today we are also facing a unique moment.

The Prime Minister has called on our country to look beyond the challenges of today and to embark on a path that will redefine Canada for generations to come.

He has asked us to focus on what we can control and to take bold action.

I have confidence in the strength of Canadians.

I have confidence in our ability as a nation to meet the moment.

I have confidence that together we can build Canada, protect our way of life, and empower Canadians like never before.

Because we believe in Canada.

Canada has what the world needs, and what the world increasingly wants:

• We are an energy superpower, in both clean and conventional energy;
• We are among the top producers of critical minerals and a world leader in artificial intelligence;
• We have unmatched market access, as the only country in the G7 with free trade agreements with every other G7 nation;
• We have the people, the resources and the stability necessary to prosper and compete in the new economy before us.

So Canada enters this period of transformation from a position of strength.

Canada has the lowest net debt-to-GDP ratio in the G7, and the federal debt-to-GDP ratio will remain stable over the Budget horizon. We also have one of the lowest deficits in the G7, and one of the strongest fiscal positions in the world.

And we must use this fiscal firepower to make generational investments.

Because we believe in Canada.

As the Managing Director of the International Monetary Fund recently said:

“Both Germany and Canada recognize that in this very testing time, they need to use their fiscal space.

In the case of Canada, the Canadian authorities have been very decisive to take action in the context of changing relations with their main trading partner.”

That recognition matters – because it affirms something fundamental about this country: when times are difficult, we do not retreat, we invest.

Budget 2025 is a plan to catalyze investments from provinces, territories, municipalities, Indigenous communities, and the private sector.

With this plan, in five years, we will see one trillion dollars in total investments in this country.

Canada is one of the best places in the world to invest; and we are going to make it even better.

This fiscal strength allows to make historic investments not only today but also for future generations.

And to Canadians who feel the strain of these times, our message is clear:

• We will not back down;
• We will be there for you, now, and for as long as it takes, and
• We will do what Canadians do best in times of need, we look after each other, we help each other. That’s the Canadian way, our way!

Meeting this challenge requires both ambition and discipline.

We need to be ambitious in our investments and rigorous in our spending.

That’s why this budget charts a new course for Canada’s public finances. Because Canadians expect their government to achieve results.

And to get there, we must spend less on operations so we can invest more in Canada’s future.

First, a new Capital Budgeting Framework, separating our day-to-day spending from the investments that build our future.

This reform will allow Canadians to better understand where their money goes and will ensure that each dollar helps strengthen our productivity.

In short, we will make capital investments a national priority.

Better budgeting also means presenting the budget at the best time.

From now on the budget will be presented in the fall, aligning with the construction season, and better supporting provinces, municipalities as well as contractors in the delivery of their projects.

Second, discipline. The Prime Minister has been clear: Canada’s new government will spend less, so we can invest more.

Mr. Speaker, our budget today puts forward 60 billion dollars in savings over five years.

Let me be clear, Mr. Speaker, we are protecting the vital services Canadians rely on, including child care, dental care, and pharmacare.

And we are making responsible and pragmatic choices to reduce inefficiencies and focus government initiatives on our core priorities.

Through the government’s Comprehensive Expenditure Review, we are focusing investments on initiatives that meet their objectives and complement, rather than duplicate, services delivered by other levels of government.

For example, the Department of National Defence will divest from fleets reaching the end of service life, and focus on investing in new fleets that meet the modern needs of our service members, while maximizing benefits for Canadian companies.

We will cut red tape, digitize services, and make them faster, simpler, and easier to access.

We are encouraging the adoption of new technologies across government, including made-in-Canada sovereign AI tools, through a new Digital Transformation Office.

This will create a more effective government, one that can deliver smarter, faster, and more effectively for Canadians.

Building a government that works better for Canadians requires a modern, agile, and efficient public service.

Since 2019, the federal public service population has grown at a rate far greater than the Canadian population.

We must get the size of our public service back to a sustainable level that is in keeping with best-practices. And we will do so with fairness and compassion.

And, Mr. Speaker, as we modernize government, we will make the tax system fairer for Canadians.

Third, clear fiscal anchors. We will balance day-to-day operating spending with revenues by 2028-29, shifting the budget toward investments that grow the economy.

We will maintain a declining deficit-to-GDP ratio, ensuring discipline today, while investing in our collective future.

The measures proposed in Budget 2025 put us on the right path to achieving our investment goals.

Mr. Speaker, we will create a business environment that attracts an unprecedented flow of private capital into the energy, infrastructure, housing, and defence sectors.

You see, Mr. Speaker, productivity and investment are the keys to our economic success.

And the government is fully focused on boosting productivity –doing more with less – because that is the best way to raise our standard of living.

Budget 2025 will not only accelerate construction in housing and infrastructure.

It will also strengthen Canada’s position as a fiscally competitive jurisdiction and one of the best places in the world to invest.

In addition, we will introduce measures to enhance competition across the economy – starting with the financial and telecommunications sectors.

Mr. Speaker, budgets are not about doing everything. They are about doing what’s necessary – and doing it well.

We are putting forward a firm, fair, and results-driven plan –the kind of reform Canadians are asking for, and the kind that has always served our country well.

This generational plan invests 280 billion dollars over five years in capital to strengthen Canada’s productivity, competitiveness, and resilience. On a cash basis, that is an historic investment of 450 billion dollars.

These investments will drive growth in every region and create good, middle-class jobs that benefit all Canadians.

The kind of careers that allow young people and families to plan for the future with confidence.

Our generational investments will focus on four key priorities:

• Housing: to restore affordability and opportunity.
• Infrastructure: to connect Canadians and accelerate growth.
• Defence and security: to protect our sovereignty and our communities.
•  Productivity and competitiveness: to put Canada at the forefront and make our country a leader in innovation.

These are not abstract priorities – they are the foundations of a stronger, more independent, and more competitive Canada.

Because we believe in Canada.

Our task now is to turn fiscal strength into national purpose.

For generations, together Canadians have undertaken major projects that have connected our regions, energized our industries, and defined our identity.

The One Canadian Economy Act, adopted last June, continues that tradition.

It removes barriers to internal trade, accelerates approvals for major projects, and strengthens the economic union that binds our provinces and territories together.

We are completing the unfinished work of Confederation – ensuring that wherever a product is made in Canada, it can be sold in Canada. Where trade and opportunity flow freely across provincial lines.

Our new government is also launching the next generation of nation-building projects.

The highways, airstrips, ports, electrical grids, and digital corridors that will define the next century of Canadian growth.

Thanks to these investments, we will connect regions, strengthen supply chains, and create hundreds of thousands of high-paying jobs in every region of the country.

Our Arctic Infrastructure Fund will expand possibilities and opportunities like never before in Canada’s North.

And, we will build infrastructure in communities all across Canada through the new Build Communities Strong Fund.

As we build millions more homes, we’ll need infrastructure like roads to build new neighbourhoods – this fund will help build that.

New neighbourhoods will lead to new communities, that will want recreation and athletic centres – this fund will help build that.

And new communities will need new hospitals - this fund will help build that.

This fund will Build Communities Strong.

And we will also do that by being our own best customer through a new Buy Canadian Policy.

When the Government buys, Canadian suppliers will be our first choice wherever possible. Full stop.

Because we believe in Canada.

We will use:

• steel made by our workers in Hamilton and Sault Ste. Marie;
• aluminum cast in Saguenay-Lac-Saint-Jean, Bécancour and Kitimat;
• and softwood lumber cut in Thunder Bay, Prince George and La Tuque.

Because every time we buy here at home and build here at home, we make Canada stronger.

Mr. Speaker, I will give you one example.

Yesterday, in Saint-Tite, a small rural city in my riding, I visited Boulet Boots, a family business that has made boots since 1933!

I even had the opportunity to build part of the shoes I am wearing today, with the help of many skilled workers — a reminder of the craftsmanship and pride that make the Canadian manufacturing industry strong.

The same shoes worn by RCMP officers!

Made in Canada, by Canadians, for Canadians. That’s the way to go!

That’s what Buy Canadian is all about: good jobs, resilient communities, and pride in what we build together.

We are building an economy by Canadians, for Canadians.

Canada has A Legacy of Builders, Mr. Speaker, that same spirit of building at home has defined Canada for generations. We have done this before.

Back in 1945, just after the war, Canada had to think big. As so-called “Minister of Everything” at the time, the great C.D. Howe banked on the boundless potential of Canada to make big, big changes. He was not afraid to bet big on Canadians – and neither are we.

This budget is guided by the conviction that Canada must remain a nation of builders – of infrastructure and innovation, of trust in public institutions, and of hope for generations to come.

This nation knows how to build:

• We built the Canadian Pacific Railway in 1885, allowing our country to be connected from coast to coast and supporting trade across the Prairies;
• We built the St. Lawrence Seaway in 1959, creating a deep-water route from the Great Lakes to the Atlantic Ocean;
• We built the James Bay hydroelectric facility in 1985, providing abundant clean energy to power Canadian industries and enabling Canada to become one of the world’s top producers of renewable hydroelectric energy.

Each generation has taken on its share of the work and left the next generation stronger for it.

We will do it again.

With planned investments of 115 billion dollars in infrastructure over 5 years, we will meet the moment and build the backbone of Canada’s next economy.

Our task is simple but profound:

• to turn plans into projects,
• projects into careers,
• and careers into prosperity.

And to do so in a way that protects our future, our nature, and our core values, building in true partnership with Indigenous Peoples, whose stewardship and knowledge of the land continue to guide us today.

Because we do not just build for ourselves. We build for those who will follow.

I am often reminded of the Seven Generation Principle, rooted in Indigenous teachings — a reminder that every decision we take today must consider its impacts on future generations.

Mr. Speaker, a strong country invests not only in its economy, but also in its identity.

Over the past year, Canadians have shown what Canada is really made of.

When global uncertainty tested us, we looked to each other.

People asked where their food was grown and chose to buy from local farmers and producers.

Families travelled across the country and rediscovered its beauty, from coast to coast to coast.

Communities rallied around Canadian businesses, creators, and workers.

That, Mr. Speaker, is what it means to be Canadian. To stand up for one another, to build together, and to take pride in what we make, grow, and create here at home.

We are a bilingual, diverse and compassionate country; shaped by reconciliation, equality, and respect.

Canada faces a steep housing supply gap that threatens affordability, opportunity, and the ability for Canadians to build their lives here at home.

Budget 2025 is the most ambitious housing plan since the Second World War!

With investments of 13 billion dollars over 5 years, our flagship home building initiative, Build Canada Homes, will build at a speed and scale not seen in generations.

We will double the pace of housing construction over the next decade while creating a new industry using Canadian technology, Canadian workers, and Canadian lumber.

We will improve affordability and create careers in the skilled trades, Mr. Speaker.

Every home built is a step toward a more affordable, more confident Canada.

Affordability is not only about housing.

It’s about making life easier for Canadians and reducing everyday costs, while protecting the programs that families depend on.

Canadians elected us to take bold action to help them improve their quality of life quickly.

That’s what we did, Mr. Speaker, and will continue to do:

• We cut taxes for 22 million Canadians;
• We brought down gas prices by 18 cents per litre when we cancelled the consumer carbon price;
• We made permanent the National School Food Program, helping 400,000 children each year;
• We’ve launched automatic federal benefits, reaching 5.5 million low-income Canadians, to ensure no one gets left behind;
• We will strengthen competition in the telecommunications and banking sectors in order to drive down costs.

These are practical measures that make life more affordable today and build confidence for tomorrow.

Because when Canadians can afford a home, raise a family, and plan for the future, our entire country grows stronger.

Because prosperity is only meaningful when it is shared and when all Canadians can see themselves in the promise of this country.

As the Prime Minister has said: there can be no prosperity without security.

And I’m sure, Mr. Speaker, that every member of this House would agree that we need to protect our people, our communities, and our country.

A confident nation protects its sovereignty at home and its interests abroad, through strength, stability, and partnership with Allies who share our values.

With $30 billion over five years, Budget 2025 represents the largest defence investment in decades.

We will meet our NATO 2% commitment this year, modernize NORAD, reinforce our Arctic defences, and equip the brave women and men of the Canadian Armed Forces with the infrastructure and technology they need to safeguard our nation.

With our new Defence Investment Agency and Defence Industrial Strategy, we will build up Canada’s defence industry – strengthening Canadian businesses and supporting Canadian workers.

Our work on defence will strengthen Canadian research centres, and Canadian communities in the North, working with our Inuit and First Nations partners, by building dual-use infrastructure – like ports and airport runways.

We will further build our security and defence capabilities, right here at home – creating new jobs for our engineers, technicians and scientists in sectors such as aerospace, shipbuilding, cybersecurity, and AI.

We will hire 1,000 new border services officers and 1,000 new RCMP personnel to secure our borders and keep our communities safe.

Finally, by investing in law enforcement and justice reform, we will tackle organized crime, gun violence, and auto theft.

We will also invest and we will continue, with passion and determination, as my colleague Minister Valdez is doing, the important work with the provinces and territories to end gender-based violence.

We are taking all these actions because we believe in Canada.

As we strengthen our security partnerships, it is essential that we also deepen our economic partnerships.

In order to build a stronger future, we must increase trade, innovate faster, and play a leading role in clean and conventional energy.

Trade has always been one of Canada’s strengths, connecting our population, our resources, and our industries to the rest of the world.

But too much of that trade depends on a single partner.

Through Budget 2025, we are launching a Trade Diversification Strategy supported by a Trade Diversification Corridors Fund to expand Canada’s reach, double our overseas exports within a decade, unlocking 300 billion dollars in new opportunities for Canadian workers and businesses.

We will strengthen ports, railways, and ports of entry, we will reduce bottlenecks, and we will open faster routes to global markets.

Because when Canadian businesses are competitive and successful abroad, Canadian workers and communities prosper right here at home.

Mr. Speaker, Canada is the best place to live, and top talent from around the world want to come here because they see opportunities and possibilities to contribute to cutting-edge research.

With our flagship International Talent Attraction Strategy of $1.7 billion, we will make sure that the best and brightest continue to chose Canada to innovate, invent and grow our industry.

By making a generational investment of 115 billion dollars over 5 years in measures that will drive productivity and competitiveness, we will supercharge growth in Canada, and become the strongest economy of the G7.

Productivity is not about working harder, it’s about working smarter.

It’s about how well we mobilize ideas, workers, investment, and innovation to generate growth.

It is what drives wages up, improves living standards, and strengthens public services.

For too long, Canada’s productivity has been lagging – a challenge we can and must overcome.

AI will play a key role, along with quantum and other advanced technologies, to put Canada on a path of sustained growth.

Budget 2025 initiates this change by rethinking how Canada competes and creates value.

Through:

• A Productivity Super-Deduction to create the right climate for businesses to invest in new machinery, equipment, and technologies.
• A bold expansion of projects of national interest in AI, clean technology, and advanced manufacturing – turning Canadian innovation into industrial strength.
• And enhancing tax incentives for Canadian builders to conduct research and development – and making it seamless for them to apply to these essential tax credits that drive innovation and productivity.

Mr. Speaker, numbers in the budget can seem abstract, so let me make them concrete.

As I said earlier, this budget will unleash one trillion dollars in total investment over the next five years. That would boost average wages by over $3,000 per year!

It would add 15 billion dollars to federal revenues that can support health care, lower your taxes and pay down Canada’s debt.

We choose Canada. We will make Canada Strong.

Because we believe in Canada.

Mr. Speaker, throughout our history, we have opened our doors to the world. We have always welcomed:

• those fleeing the most difficult situations;
• those seeking to study at our world-class universities;
• and those willing to share their expertise and drive innovation in Canada.

Mr. Speaker, we are taking back control over the immigration system and putting Canada on a trajectory to bring immigration back to sustainable levels – allowing us to fulfill the promise of Canada to those who call it home.

Our plan will restore control, clarity, and consistency to the immigration system, while maintaining compassion in our choices and driving competitiveness in our economy.

Our plan will allow us to ensure better control of our immigration system while maintaining our approach based on our Canadian values.

Climate action is not only a moral obligation, it is an economic necessity.

The key to competitiveness and growth is also to be a leader in a low-carbon economy.

Our Climate Competitiveness Strategy turns Canada’s natural wealth – critical minerals, clean power – into lasting prosperity.

Reducing our emissions is essential to protecting the competitiveness of Canada’s energy sectors.

We are introducing a comprehensive suite of clean economy investment tax credits – measures that are already generating billions of dollars in private capital for projects in hydrogen, carbon capture, and clean electricity.

These investments will modernize our power grids, speed up approvals for major clean energy projects, and expand the transmission lines that connect our provinces.

By becoming a global leader in clean technology and clean energy, Canada can strengthen its competitive advantage and help our industries thrive in the global economy.

We have the most skilled and talented workers as well as the most educated workforce in the world. We can all be very proud of that.

Budget 2025 expands learning, training, and growth opportunities for young people.

It creates new pathways for careers in construction, clean energy, and advanced manufacturing.

It is essential that we give the next generation the confidence and skills needed to succeed.

So, through a suite of new measures, we will extend union training, extend the tax credit to personal support workers, and enhance labour mobility.

Mr. Speaker, Canadian workers will drive Canada’s economic transformation with new skills and training, and they will seize the exciting, high-paying careers it will create.

In the words of the Canadian Labour Congress, “these measures signal a shift toward putting workers at the heart of Canada’s economic strategy”.

This is how we give Canadians the tools they need to shape the future.

This is how we Build Canada Strong.

To conclude, Mr. Speaker, the budget I am tabling today is our framework for Canada's future and a roadmap to prosperity and resilience.

It all comes down to a choice between two visions.

One vision of resignation – a vision that would scale back the vital support Canadians rely on, make it harder for families to find a home, and leave our country more vulnerable, poorer, and dependent.

And another vision – one rooted in confidence. Confidence in Canadians, and in the belief that by making generational investments today, we can build lasting prosperity for tomorrow.

• By putting more money in people’s pockets.
• By ensuring every Canadian can retire with dignity.
• By making the dream of home ownership a reality once again
• By building the infrastructure our cities need to grow.
• By keeping our communities safe for our children and our parents.

Budget 2025 makes our choice clear: we choose confidence over resignation. We choose to empower Canadians – to build this country together and to protect what we hold dear.

Mr. Speaker, it’s about confidence. In ourselves, in our capacity to adapt, and in the promise of this great country.

It is about a Canada that builds, protects, and empowers.

It’s about moving from reliance to resilience, and from uncertainty to prosperity.

Let’s rise to this generational challenge.

Let’s build Canada strong.

Because we are – and always will be – the true North, strong and free.

LONG LIVE CANADA!