OTTAWA, Ontario, Nov. 04, 2025 (GLOBE NEWSWIRE) — Amid a weaker-than-expected economic outlook and limited fiscal space, Budget 2025 attempts to balance support for impacted sectors while keeping long-term growth at the forefront, according to CPA Canada's chief economist.
“Growth is nowhere near what it could have been due to trade disputes, but the financial reality is difficult,” says CPA Canada chief economist David-Alexandre Brassard.
“The government is focused on stimulating long-term productivity through targeted investments and tax measures while phasing out some existing credits, which will help simplify Canada's tax system.”
The budget strengthens trade diversification, competitiveness, incentives for private investment, increased defense spending and a continued focus on the housing sector.
At the same time, rising deficits and rising debt-to-GDP ratios signal real limits to fiscal leverage.
“The federal government has limited room to grow, and the deficit will get worse before it gets better,” Brassard adds.
Prime Minister Mark Carney's government has cut several tax measures introduced by the previous government, such as the underutilized housing tax, the luxury tax on qualifying aircraft and ships, and the Canada Business Incentives.
“On the tax front, there's not much to look forward to in this long-awaited budget,” says John Oakey, CPA Canada's vice-president of tax.
“The government has focused on economic productivity, expanding tax breaks for R&D and critical minerals, and committing to accelerate capital spending, but has left behind many of the promises made in their election platform.”
While the elimination of some tax breaks is consistent with CPA Canada's call for a simplified tax system, CPA Canada is disappointed that Budget 2025 does not include a more comprehensive review. The organization is committed to continuing to advocate for such a review, as stated in a recently released white paper: “CPAs Renew Calls for Tax Overhaul: A Roadmap to Modernize Canada's Tax System.
To access our white paper or to book an interview, please contact [email protected].
