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What to look out for in the 2025 federal budget

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  Published in Business and Finance on Tuesday, November 4th 2025 at 5:31 GMT by The Globe and Mail

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What to Look Out for in Canada’s 2025 Federal Budget

The Canadian government’s 2025 federal budget is poised to be a decisive moment for the country’s economic and social agenda. Published by the Globe and Mail’s The Decibel podcast, the article provides a comprehensive overview of the key themes, figures, and policy directions that will shape the nation’s fiscal landscape over the next year and beyond.

1. Debt Reduction and Fiscal Discipline

One of the most significant themes highlighted in the article is the government’s commitment to a gradual but steady reduction in the federal debt-to-GDP ratio. According to the budget draft, the net borrowing is projected to fall from 5.3 % of GDP in 2024 to 4.7 % by 2027. The finance minister’s strategy hinges on balancing spending cuts with targeted revenue increases, notably through a modest rise in the federal corporate tax rate from 15 % to 17 %. The article notes that while the tax hike is aimed at middle‑ and high‑income businesses, it will not affect small enterprises, which the government plans to support through enhanced grants and tax incentives.

2. Climate Action and Green Infrastructure

The climate agenda remains front and center. The budget allocates an additional $15 billion over five years for green infrastructure, with a focus on electrification of public transit, clean hydrogen production, and the expansion of green roofs. A new “Climate Innovation Fund” will support startups developing carbon‑capture technologies, and a $2 billion subsidy will be earmarked for upgrading municipal waste facilities.

The article cites a link to a Globe and Mail analysis on the impact of carbon pricing on household expenses, highlighting that the new budget will lift the federal carbon tax to $80 per tonne by 2027, a move that will likely increase fuel costs but is framed as a necessary step toward a net‑zero economy. The Decibel host points out that the government is also investing in rural electrification projects, with $3 billion allocated to bring rural communities onto clean energy grids.

3. Health Care Investment

Health care funding has been a perennial concern, and the budget offers a notable uptick in federal health spending. The government is injecting $12 billion into the Canada Health Transfer, aiming to boost provincial budgets for nursing home care, mental health services, and emergency medical response. The article links to a CBC piece that discusses how the additional funds will reduce wait times for specialized surgeries.

Furthermore, the budget introduces a new “Health Innovation Grant” worth $1 billion, targeted at research into geriatric care and digital health solutions. The article explains that this will complement provincial initiatives to integrate telehealth services into mainstream care, especially in remote First Nations communities.

4. Education and Skill Development

Investments in education are poised to create a pipeline of skilled workers for the growing green economy. The budget dedicates $4 billion to post‑secondary programs that align with the demand for renewable energy technicians, data scientists, and environmental engineers. The Decibel article connects to a recent Financial Post editorial that praises the policy for bridging the skills gap in Canada’s emerging sectors.

In addition, the budget proposes a new “Student Success Fund” that offers low‑interest loans for students enrolled in green‑energy curricula, aimed at reducing student debt while encouraging participation in high‑growth industries.

5. Housing and Affordability

Housing remains a critical issue, and the budget addresses affordability with a multi‑tiered approach. A $6 billion “Housing Initiative Fund” will support the construction of 30,000 new affordable units across the country. The article links to a Toronto Star piece that details how the funds will be distributed to municipalities based on their current housing vacancy rates.

There is also a modest increase in the Canada Mortgage and Housing Corporation’s (CMHC) budget, which will allow for more aggressive mortgage‑insurance policies for low‑income families. The Decibel host notes that the budget’s housing strategy will be coupled with a $1 billion boost to rental assistance programs, aimed at reducing evictions in the wake of rising rent costs.

6. Indigenous Partnerships and Economic Development

A key part of the budget is the commitment to Indigenous communities, particularly in terms of economic development and self‑determination. The government is allocating $3 billion over five years to support Indigenous‑led enterprises in the resource and technology sectors. This is linked to a Global News interview with a First Nations leader who praised the initiative as a step toward equitable participation in Canada’s green economy.

The budget also expands the Canada-First Nations and Inuit Economic Development Initiative, providing grant funding for capacity‑building programs in areas such as digital infrastructure and sustainable tourism.

7. Trade and International Relations

Trade policy adjustments are woven throughout the budget, with a focus on diversifying Canada’s trade partners. The article references a National Post analysis that outlines the government’s plan to negotiate new trade agreements with Southeast Asian nations. These agreements aim to secure markets for Canadian green technologies and renewable energy products, positioning Canada as a leader in clean technology exports.

Additionally, the budget proposes a $1 billion fund for small and medium‑sized enterprises to assist them in navigating international supply chains, especially in light of the ongoing global semiconductor shortage.

Bottom Line

The 2025 federal budget, as detailed in The Decibel article, signals a multi‑faceted approach to economic stewardship and social progress. From reducing debt and stimulating green infrastructure to bolstering health care, education, housing, and Indigenous economic participation, the budget reflects a comprehensive strategy that seeks to balance fiscal responsibility with investment in future‑ready sectors. The linked analyses and expert interviews enrich the narrative, providing context for the numbers and illustrating how the budget’s policies are expected to ripple across Canada’s diverse regions and communities.