November 5, 2025
Municipal Information Network

Government of Canada releases Budget 2025: Canada Strong

November 5, 2025

Canada faces a rapidly changing and increasingly uncertain world. The rules-based international order and the trading system that powered Canada's prosperity for decades are being reshaped - hurting companies, displacing workers, causing major disruption and upheaval for Canadians.

In the face of global uncertainty, Canada's new government is focused on what we can control. Budget 2025: Canada Strong is our plan to transform our economy from one that is reliant on a single trade partner, to one that is stronger, more self-sufficient, and more resilient to global shocks. 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. We are creating an economy by Canadians, for Canadians.   

We are building Canada Strong. This is a plan to build the major infrastructure, homes, and industries that grow our economy and create lasting prosperity. This is a plan that will protect our communities, our borders, and our way of life. This is a plan to empower Canadians with better careers, strong public services, and a more affordable life. We are building a stronger economy, so that Canadians can build their own future.

To do that, Canada's new government is delivering an investment budget. We are spending less on government operations - and investing more in the workers, businesses, and nation-building infrastructure that will grow our economy. Budget 2025 delivers on the government's Comprehensive Expenditure Review to modernise government, improve efficiencies, and deliver better results and services for Canadians. It includes a total of $60 billion in savings and revenues over five years, and makes generational investments in housing, infrastructure, defence, productivity and competitiveness. These are the smart, strategic investments that will enable $1 trillion in total investments over the next five years through smarter public spending and stronger capital investment.

Countries across the world are facing global economic challenges - and Canada is no different. 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. It is our plan to build Canada Strong.

Quotes

"The global uncertainty we are facing demands bold action to secure Canada's future. 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 Honourable François-Philippe Champagne, Minister of Finance and National Revenue

Quick facts

  • Canada has the fiscal capacity to meet its ambition:
    • Canada has the lowest net debt-to-GDP ratio in the G7 at 13.3 per cent according to the IMF October 2025 Fiscal Monitor. Canada also has one of the lowest deficit-to-GDP ratios in the G7, second only to Japan. This strong fiscal position enables us to respond to global challenges.
    • Canada is one of only two G7 economies with a AAA credit rating, making Canada one of the best places to invest in the world.
    • Canada has the best deal of any U.S. trading partner, with 85 per cent of our trade tariff-free. While some sectors remain deeply impacted, overall, Canadian exporters benefit from the lowest average U.S. tariff of any country at 5.4 per cent. 
  • Budget 2025 rests on two fiscal anchors:
    • Balancing day-to-day operating spending with revenues by 2028-29, shifting spending toward investments that grow the economy; and
    • Maintaining a declining deficit-to-GDP ratio to ensure disciplined fiscal management for future generations.
  • In addition to the two fiscal anchors, Budget 2025 enables $1 trillion in total investments over the next five years through smarter public spending and stronger capital investment. 

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For more information

Government of Canada

www.canada.gc.ca


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