Budget 2025 — Some steps in the right direction
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Dear friends,
A federal budget is a big deal for us here at the Business Council of Canada. It sets the direction for the country’s economy for years to come. It’s why we spend a lot of time thinking about which fiscal measures will have the greatest positive impact on the lives and livelihoods of Canadians.
This year, we conducted a substantial pre-budget consultation, surveying the country’s top economists along with our members to come up with recommendations for the government.
In our pre-budget letter to the Prime Minister, we called for responsible borrowing for initiatives that will improve Canada’s economy, a pro-growth agenda that includes regulatory reform, and a credible plan to reduce the deficit over time.
With Budget 2025, the government has introduced new economy-enhancing investments, heightened its focus on productivity and begun to reshape the policy agenda.
But does it go far enough and fast enough? We were looking for bold, decisive action to unlock investment, scale firms and enhance competitiveness, and only time will tell if this budget meets the moment.
To be sure, the budget makes welcome progress in key areas. For example, there’s a strong commitment to nation-building infrastructure, defence and critical minerals — all vital to Canada’s competitive future. It also offers some measures aimed at strengthening competitiveness, for example in clean-growth tax credits and critical-minerals investment.
But as I’ve said many times, capital is mobile and jurisdictions around the world are competing harder than ever to entice investment. We need to make sure Canada is an attractive place to invest.
Businesses will be looking for clarity on how tax, investment incentives and regulatory regimes will evolve to support scale-ups, global expansion and retention of home-grown innovation. Without that clarity, capital will continue to flow elsewhere.
I’ll be watching for quick, credible implementation of budget measures to ensure Canada doesn’t lose the competitive momentum these investments are meant to generate.
Yours truly,
Goldy Hyder
President and CEO
Business Council of Canada
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