Mr. Speaker, it is a privilege to rise here this afternoon to talk about the budget the government tabled this week.
I will be splitting my time with the hon. member for Pickering—Brooklin.
We are living in an uncertain world. The U.S. administration's change in its approach to trade, including global tariffs, is having a major impact on the global economy and Canadian industry. Countries are increasingly looking inward. That is not necessarily positive for a country like Canada, which is truly an exporting nation. Geopolitical conflict, with the wars in Europe, Ukraine, Gaza and Africa, is creating instability as well.
Although artificial intelligence creates and has an opportunity for immense potential, it also has the opportunity to shape things in a negative way, depending on how that technology is deployed. It is undoubtedly disruptive.
Simply put, now is a critical time for Canada, and the budget tabled this week is a true road map for Canadian prosperity and our shared pathway forward.
This budget has three major pillars. The first is a laser focus on growing and strengthening the Canadian economy, and I appreciate that the Prime Minister has shown a focus in this regard. The second is affordability, housing and empowering Canadians. The third is protecting Canadian communities and sovereignty. This would all be done while maintaining fiscal discipline and recalibrating public spending.
I want to start there. Whether we hear it from the opposition benches or we see it in certain social media posts, the idea that Canada's fiscal track is unsustainable or that it is not a possible pathway forward is simply untrue. I am going to share some facts to hopefully highlight and give comfort to Canadians at home that we are in a strong fiscal position. We have to be mindful and prudent, as the government is demonstrating, but we are not in the chaotic and reckless world that the Conservatives would have everyone believe we are in.
It is important for Canadians to understand that the government is committing to balancing the operating side of the ledger in the budget in the next three years. The government is looking at government expenses and saying we need to make sure that we are living within our means on operating and program spending, but it also recognizing that now is a time to build and make capital investments that will have positive, long-term economic consequences for the Canadian economy. We are focused on reining in public spending within three years, but are keeping room for longer-term capital spends.
It is important to recognize that this budget projects a stable, declining net debt-to-GDP ratio over time. Of course, that is the size of Canada's debt as a proportion of its economy, which will stay in the range of 42% to 43% of GDP over time. Canada has the lowest net debt-to-GDP ratio in the G7. We rarely, if ever, hear that from the opposition benches. This is in contrast to comparable countries like the United Kingdom, France, Italy and Japan. Canada has a stable financial track. We also have the second-lowest deficit proportionate to our economy in the G7.
We have heard from the opposition benches the idea that the debt servicing costs are unsustainable. We need to put that into context. I was born in 1991, and the 1990s were a time when Canada was in a truly difficult financial period. For example, in 1990, the Government of Canada was spending, on average, 35¢ of every dollar toward servicing its debt alone. That means 35% of the government's entire expenditure was on servicing debt. Right now, we are at around 10¢ for every dollar spent.
I have no problem with members across the way talking about the importance of prudence in our fiscal approach and being mindful of public spending. That is all fair game. However, when certain Conservatives stand up and suggest that Canada's fiscal track is completely unsustainable, that we are in a chaotic period and that generations of Canadians will never be able to make a future because the debt is unsustainable, it is simply not true. I am living proof. We were at 35% of our expenditure in 1990. My generation has a bright future in Canada moving forward. We are nowhere near those levels, and the government is demonstrating that we are not ever going to get near those levels with our pathway forward.
Growing the economy is essential, particularly with some of the challenges that we are facing as a country. The Prime Minister has been saying for us to focus on what we can control about economic growth in this country while we also engage around the world. Canada has what the world wants and needs, whether it is in agriculture, natural resources, energy or critical minerals, and now is the time to make sure that we can feed, fuel and power the world.
I was particularly pleased to see a large emphasis on agriculture. Kings—Hants is the largest agricultural riding in Atlantic Canada. Whether it is horticulture, fruit growing, beef products or the emerging grain sector, we have what the world needs. I want to give a compliment to the Minister of Agriculture, who was recently in Mexico promoting eastern Canadian apples. We have an opportunity to do more trade in those areas.
Also, there is the Minister of International Trade and the trade agreement we recently signed with Indonesia. I also think of Vietnam. Southeast Asia is a world of opportunity for our Nova Scotia fruit growers to be able to export more of our apples from the Annapolis Valley and find more markets around the world.
Forestry is extremely important in Kings—Hants as well, and I was pleased to see that there is a significant emphasis in this budget on programming to support the forestry sector, notably, the investment tax credit on biowaste. I think about Ledwidge Lumber and the work it is doing to create a facility for sustainable jet fuel. This is the type of tax credit that can be used to help support those projects. I also think about the mass timber facility and the financing that was announced through the forestry innovation programs of NRCan. A replenishment of that fund is going to support the types of activities where we have good, quality jobs in Kings—Hants tied to the forestry sector. It is really important to see.
We know that infrastructure is an important catalyst for growth in our communities. I have had the good fortune of having many infrastructure announcements over the last six years that are supporting our communities in the counties of Kings and Hants. I think about the Kings county municipal council, for example, trying to advance its recreational complex. The government has made a commitment to put $51 billion of investment in infrastructure over the next 10 years, and those programs are going to matter when these projects come to the Government of Canada as we will have the ability to fund, help support and contribute to them. I also think that in East Hants and West Hants, whether it is infrastructure for housing or waste water, this infrastructure spending is going to be extremely important.
On major national projects, we are working across the country to advance these projects in earnest. This is going to be important for the national economy. In Atlantic Canada, there has been reference to wind west and offshore wind potential. I think that is extremely important. There is more work to be done on that file, but we are willing to work with the provinces. There would also be investment tax credits for critical minerals and our mining sector. These really do matter.
On competitiveness, I would like to highlight the fact that we are focused on the superdeduction. This is an accelerated cost of capital allowance through which businesses would be able to write off expenditures very quickly. It is a competitive measure, and it would mean that Canada's marginal effective tax rate would be the lowest in the G7. This is important for the competitiveness of businesses, both large and small, in making sure that they have the ability to move forward.
On affordability, 22 million Canadians would benefit from the tax credit we are putting forward. The removal of GST for new construction for first-time homebuyers is an extremely important measure that will matter in Kings—Hants.
We have committed to the national school food program and making that program permanent. I was deeply disappointed by the comments from the member for Central Newfoundland, from the Conservative party, who called this program “garbage”. That is deeply disturbing. There are members in our communities in Kings—Hants who have fought very hard for this type of programming. It matters in conjunction with provincial resourcing because it matters for kids.
On Build Canada Homes, there is $13 billion that would go toward working to build affordable housing in this country.
There are supports for personal service workers and also a lot of emphasis on young Canadians, including through replenishment and an augmentation of the Canada summer jobs program. This matters for small businesses and not-for-profits but, most importantly, it matters for young workers.
Last, and I am going to leave it here, there would be a generational investment in our Canadian Armed Forces. This is extremely important.
I see I am coming to the end of my time. I look forward to adding a bit extra when my colleagues ask me questions.
