Carney says $1-trillion investment target may be surpassed

Prime Minister Mark Carney says the federal budget’s goal of driving $1-trillion in public and private investment over five years may underestimate the actual economic impact. The 2025 budget includes more than $140-billion in targeted new spending and tax incentives aimed at boosting development in housing, infrastructure and other key economic sectors by 2030. Carney noted that the estimate does not fully capture the added effect of future public investment. About half of the projected $1-trillion would need to come from private investors, but business leaders say that will only happen if Ottawa improves regulatory processes, speeds up approvals for major projects and addresses tax competitiveness challenges.

The government is taking on significant deficits to support the investment agenda, with this year’s shortfall projected at $78.3-billion. Canada’s debt-to-GDP ratio is expected to rise slightly, reversing earlier Liberal commitments to reduce it over time. Finance Minister François-Philippe Champagne argued that the budget makes Canada more attractive than the United States for business investment, while Carney pointed to increased interest from global investors following his recent outreach abroad.
However, economists caution that the $1-trillion figure depends on optimistic assumptions. Some say the budget falls short of being truly transformative, though it may signal the start of a longer shift toward boosting productivity and growth. The budget also plans to cut nearly $60-billion in internal spending over five years, including reducing the federal public service by about 40,000 jobs — a move unions say will harm services Canadians rely on.

Opposition Conservatives criticized the budget for weakening fiscal discipline and increasing national debt burdens, particularly for younger Canadians. Carney defended the plan, saying Canada compares well with peer countries and that economic returns from the investments will become clearer over time.