The sitting was dominated by debate on the 2025 federal budget, the main item of Government Orders business. The central political argument pitted the government’s claim that the budget is a necessary generational investment in Canada’s future against Conservative and Bloc Québécois charges that it is a reckless, inflationary spending plan that piles unaffordable debt onto future generations.
The budget debate consumed the vast majority of the day. The budget, presented by the Minister of Finance, proposes $280 billion in new investments over five years, including $115 billion for infrastructure, $110 billion for productivity and innovation, $30 billion for defence and $25 billion for housing. The government projects a $78-billion deficit for 2025-26, which it defends as a proportion of GDP that is among the lowest in the G7, and notes Canada has the lowest net debt-to-GDP ratio in the G7. Conservatives attacked the deficit as the largest outside of COVID, arguing it will add $324 billion to the national debt over five years and that interest payments will exceed health transfers and GST revenue. They accused the government of breaking its promise to cap the deficit at $62 billion and of using accounting changes to disguise spending as capital investment. The Bloc Québécois criticized the budget for lacking new money for health transfers, seniors’ pensions and the environment, while noting it extends tax credits for oil and gas companies. The NDP questioned the absence of measures to address the toxic drug crisis and immediate affordability relief. The government countered that the budget cuts taxes for 22 million Canadians, cancels the consumer carbon tax, protects social programs and will catalyze $1 trillion in total investment. No amendments were moved by the government during the debate.
Oral Questions focused overwhelmingly on the budget and the economy, with recurring themes of the size of the deficit, rising food costs and the industrial carbon tax. Conservatives repeatedly asked why the government was increasing the industrial carbon tax, which they said drives up food prices. The government replied that it had cancelled the consumer carbon tax and that the budget invests in infrastructure, health and housing. A secondary theme was ethics, with Conservatives pressing the Prime Minister on his former role at Brookfield and alleged use of offshore tax havens; the Prime Minister did not answer directly, instead citing the budget’s tax fairness measures. Questions on housing saw Conservatives argue the budget would cost 100,000 jobs in the sector, while the government pointed to the new Build Canada Homes agency and GST relief for first-time homebuyers. On justice, Conservatives criticized the government for not using the notwithstanding clause after a Supreme Court ruling struck down a mandatory minimum sentence for child sexual abuse material; the government said it would bring forward new legislation.