Federal Budget 2025: Positive steps but more is needed for transformational change

The 2025 Federal Budget includes some positive measures aimed at strengthening the Canadian economy, but more work is needed to stem the outflow of capital currently exiting the country, according to the Business Council of Canada (BCC).

“Canada is experiencing an investment crisis,” said Goldy Hyder, BCC president and CEO. “While this budget makes moves in the right direction, it doesn’t go far enough and fast enough to attract investment and strengthen competitiveness.”

The BCC supports the government’s renewed focus on infrastructure and defence spending, its efforts to build a financing architecture for nation-building projects, new funding for the critical minerals sector and trade diversification corridors, as well as the positive and important signaling around providing a more accommodative regulatory framework for Canada’s resource and energy sectors.

However, the budget lacks sufficient new measures to reduce taxes or increase incentives on private sector investment, regulatory reform remains aspirational, projected deficits are at historically high levels and the plan is without strong fiscal anchors.

In a pre-budget letter sent to the Prime Minister, the BCC urged the government to focus on productivity, investment and growth as the most effective ways to raise living standards for all Canadians.

“We were encouraged to see some recognition of private sector priorities,” Hyder added. “What Canada needs is focus, speed, and more ambition. For now, we urge the government to quickly table legislation to implement measures it announced today.”