Debates of Nov. 6th, 2025

Financial Statement of Minister of Finance

[The Assistant Deputy Speaker, John Nater]

The subamendment is in order.

Questions and comments, the hon. member for Mont-Saint-Bruno—L'Acadie.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Mr. Speaker, I listened to my colleague's speech, and I have a question for him. Canada is a G7 country with an advanced economy. Canadians expect concrete solutions for the future. Our budget invests heavily in housing, infrastructure and innovation to build a stronger, fairer and more resilient Canada. Unfortunately, the Conservative Party is opposed to these essential measures.

How can my colleague justify his position? He seems to want to go back to the Stone Age, but this country needs to move forward.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Mr. Speaker, I did not find any of that in the budget. In fact, what we see is what we saw in the last nine Liberal budgets. We see that housing would get more expensive and less would get built in Canada, as well as a higher deficit, which means Canadians will be paying more for Liberal incompetence. The Prime Minister's banker buddies and bondholders would get more money than what goes to the provinces in health care transfers. Canadians will have to line up even more at food banks after this budget's release.

What the Liberals needed to do was get government out of the way, cap government spending, get rid of the food taxes so that food inflation and food costs can come down and get rid of antidevelopment laws so that Canada can build, build, build.

[Michael Chong, Conservative, Wellington—Halton Hills North, ON]

Mr. Speaker, it is safe to say that the budget is getting panned.

Here are just some headlines today on the budget: “Canadian aid cuts will bite deeply in global crisis zones, relief agencies say”; “Federal budget signals [the Prime Minister]’s new tone on climate policy, but not much substance”; “A ‘generational budget’ that does little but set federal spending adrift”, and that article, by the way, was written by the former associate deputy minister of Finance Canada; and another editorial headline, “The Liberals’ growing deficit of trust”.

I am going to replace the Prime Minister's name with his title here: “Budget shows [the Prime Minister] doesn’t know how tough it is out there on Main Street”; “Great budget, [Prime Minister]. It would be a shame if Canadians don’t get onside”; and “After all the hype, [the Prime Minister's] first budget fails to meet the moment”.

Those are out of just one publication, The Globe and Mail. Here is what the Toronto Star headline says: “Once again, [the Prime Minister] doesn’t quite live up to the hype”.

Would the member comment?

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Mr. Speaker, I want to thank my hon. colleague and friend for the tough but fair question, and he is absolutely right. The Prime Minister admits that he does not even do his own grocery shopping, so how would he know that his failed policies and all the advice that he gave to the previous prime minister, have made food inflation double what the bank's target rate is or that the Liberals' industrial carbon tax, oil and gas cap and food packaging tax have made food more expensive? How would he know, when he does not fill his own gas tank, that his industrial carbon tax or his clean fuel standard is raising the cost of the fuel that Canadians have to put in their tanks to get their kids to school and to get them to sports?

It is making life more expensive. We need to get rid of all these policies of Liberal incompetence so that Canadians can have an affordable and safe life once again.

[Maxime Blanchette-Joncas, Bloc, Rimouski—La Matapédia, QC]

Mr. Speaker, the Conservatives pride themselves on being champions of fiscal restraint. I would like to remind my colleague that, under the Harper government in 2009, the deficit was $55 billion. Taking that data and adjusting it for today's inflation puts us pretty much in the same ball park.

The Conservatives are saying that the deficit in this budget is too big and that they would have limited it to $42 billion. What I see in this budget, which looks more like a Conservative budget, is record military spending, a massive tax cut and handouts to oil companies.

Do the Conservatives really oppose the deficit, or do they oppose it only because it is not their deficit?

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Mr. Speaker, I am going to put this in terms of everyday Canadians. In fact, in the last Conservative government, food did not cost this much. Housing was half the cost. We did not have an inflationary crisis. It was former prime minister Stephen Harper in the last Conservative government who got us through a global financial crisis and made sure inflation did not go up. It is the incompetent Liberal government that has ended up spending more than any other government before it and has given Canadians an inflationary crisis, which has led to the most rapid interest rate hikes in Canadian history.

What do we see today? We see more Canadians lined up at food banks than ever before. There are 2.2 million Canadians, 700,000 of whom are children. Now mortgage delinquencies are going up because Canadians who are renewing their mortgage are seeing that their rates have almost doubled. This is because the government cannot control itself from spending Canadian taxpayers' money out of control.

[Carlos Leitão, Liberal, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, I must inform you that I will be sharing my time with the member for Mississauga—Lakeshore.

Tuesday's budget is aimed at building a strong and prosperous Canada. Basically, it comes down to three pillars: build, protect and empower.

Before I talk about the budget itself, I think it is very important to talk about the context this budget fits into. The reality is that the world changed a year ago in November 2024, when a new U.S. president was elected. That election triggered a reconfiguration of global trade. All the old rules governing trade between countries completely vanished overnight. This is making multilateral institutions weaker. Arbitrary, unfair, illegal tariffs are having a huge impact on the Canadian economy. They have reshaped supply chains, raising production costs and significantly slowing down economic growth in Canada and other parts of the world. In 2025, economic growth has slowed considerably around the globe, including in the United States.

Canada is being being dealt a double blow. We are being hit by increased costs due to tariffs, and we are also starting to feel the impact of a slowdown in U.S. demand. Canadian exporters are really starting to suffer. However, the takeaway from yesterday's conversation with the Governor of the Bank of Canada in committee is that, domestically, the Canadian economy is still performing relatively well. We are seeing weakness in external sectors and international trade, that is, exports. As we all know, 80% of Canadian exports go to the United States.

What we are seeing here is not a normal economic cycle in which we can expect a downturn to be followed by a recovery. This is a major structural shock. As our Prime Minister has said several times, things will never be the same again. We must meet this moment. We must meet it vigorously, and we must meet it now—not three years from now, not five years from now; now. Now is the time to respond to this radical change. Now is the time to overcome that external weakness.

That is why we are doing exactly what we said we would do. We will make massive investments in our economy to support and facilitate this transformation. The time is now. That is what we are going to do, not just because it is the right thing to do, but because we have the means to do it.

There has been a lot of talk in the House about the $78‑billion deficit. Members are saying that it is an enormous deficit, the worst since the Stone Age or who knows when. These are gross exaggerations. We are talking about $78 billion. When we talk about deficits, debts or many other economic and financial indicators, we always need to put them into perspective. We cannot talk about a $78‑billion deficit in the abstract. We always need to put it into perspective. In this case, we need to look at it in terms of the size of the economy. It is not 2010 or 2000 anymore. It is 2025. If we look at this supposedly enormous $78‑billion deficit in proportion to the size of the Canadian economy, we see that it amounts to just 2.5% of the GDP. Basically, it is one of the lowest deficits in the G7. We have the fiscal space to act, and we are acting forcefully and vigorously because massive intervention is required in the current circumstances.

The public debt is 42% of the GDP. Yes, we are talking about billions and billions of dollars and all of that, but in proportion to the size of the economy, the debt is 42% of the GDP. Once again, this level of debt is much lower than average. It is even below the G7 average.

What is more, since our friends are so fond of making comparisons and sharing what other agencies and stakeholders are doing, I would refer them to the most recent Moody's report, which was issued on October 31, just before budget day. Perhaps they are familiar with Moody's, the rating agency. On October 31, Moody's reaffirmed Canada's AAA credit rating and said that Canada was still financially strong, one of the strongest countries in the world.

We are not the basket cases. Come on, guys, wake up.

[An hon. member]

There are 700,000 children at food banks.

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Mr. Speaker, we have one of the best credit ratings in the world.

We have the fiscal space to take action, and we are going to act within our means.

I would appreciate the opportunity to continue my speech. I did not interrupt my colleagues.

[An hon. member]

You should be ashamed.

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

You should be ashamed. This is a democracy. We have to listen to each other.

[Some hon. members]

Oh, oh!

[The Assistant Deputy Speaker, John Nater]

Order.

There has been enough back-and-forth from both sides. The House will come to order.

The Parliamentary Secretary to the Minister of Industry has the floor.

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Mr. Speaker, I will continue my speech and remain calm.

What we also have in Canada is a productivity problem. This country has a productivity problem, and it started a long time ago. It is the outcome of insufficient private investment in machinery and equipment, and this is precisely what are going to tackle with this budget.

The budget contains very concrete, real measures to trigger a wave of productivity-boosting investments. In fact, the only way to make life more affordable for Canadians is not to lower prices, but to increase Canadians' incomes.

Do our friends opposite understand that falling prices are known as deflation? Are our friends aware that deflation usually triggers a severe economic depression? That is no way to improve affordability. Increasing the incomes of Canadians is the way.

We need to boost productivity in order to increase Canadians' incomes. Canadians must have the tools they need to do their jobs more efficiently, which will help them earn higher wages. Our budget focuses on that, by triggering what we believe will be a wave of $1 trillion in investments, which will lead to a significant increase in productivity.

We are going to invest in infrastructure, we are going to invest in housing and, of course, we are going to invest in business productivity. A number of measures will be introduced, but today I will give just one example: a superdeduction to really promote investment.

Since I am running out of time, I will wrap up by saying that we did the right thing and we did it at the right time.

[Martin Champoux, Bloc, Drummond, QC]

Mr. Speaker, I congratulate my colleague—a former Quebec finance minister, economist and former banker—on his speech.

The Liberal government's budget contains some creative accounting of Olympic proportions. It passes off expenditures as capital investments. Here is an example: Security for FIFA is considered a capital investment, not an expense. The budget contains other examples like that, and it will be really interesting to dig them all up.

Is my colleague opposite, who is an economist, a former finance minister and a banker, not embarrassed to have his name associated with a budget that contains such creative accounting, to put it politely?

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Mr. Speaker, members may have noticed that, in my speech, I talked about the total deficit of $78 billion. I did not hide anything. The budget document itself does not hide anything either. Everything is clearly stated in it.

We state that we are going to invest heavily in housing, in productivity and in supporting Canadians. That is what we are going to do.

[Tatiana Auguste, Liberal, Terrebonne, QC]

Mr. Speaker, I want to thank my colleague for his very eloquent speech. Members on the other side of the House often talk about young people, saying that times are tough for them. However, in this budget, the government is investing just over $1 billion to make sure that young Canadians have opportunities.

Can my colleague elaborate a bit more on that?

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Mr. Speaker, with the budget, we will be investing significantly in the economy, with a particular focus on young people. We are well aware that young people are facing a challenging situation. If we want to help them, we need to give them opportunities. We need to ensure that the labour market functions better so that these opportunities become a real possibility. That is how we are going to move forward.

One of the ways we are doing that is through the Canada summer jobs program. It is an extremely important program that supports young people who are still in school.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Mr. Speaker, my colleague from Drummond asked a former finance minister a very simple question, and I expect a very simple answer from that former finance minister.

How does he explain the fact that security spending for hosting FIFA is listed in the federal government's investment column of this budget, rather than in the expenditure column? I am going to focus on that specific example. Can my colleague explain to me how spending money on security for FIFA is an investment?

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Mr. Speaker, security is security. Whether it is security for FIFA or for anything else, it is national security. Again, I stated very clearly in my speech that the deficit was $78 billion. We are not hiding that fact. Everything is there. All the details are there.

[Tamara Kronis, Conservative, Nanaimo—Ladysmith, BC]

Mr. Speaker, my riding, of course, is very far away from Ottawa, and we rely heavily on the services the federal government provides locally to be able to do things such as file taxes and figure out eligibility for various government programs. This is a budget that is going to make major cuts.

I am wondering if the hon. member can share what services are going to be lost to the people in my riding.

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Mr. Speaker, it is a very relevant question. We are going to protect public services. We are going to make sure Canadians continue to have access to the services they need. In fact, in that context, I would mention one of the measures that was just announced, and that is the automatic federal benefits for low-income individuals, where the CRA will prefill tax reports so disadvantaged Canadians, who usually do not file tax reports, would have access to the programs they are entitled to.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Mr. Speaker, I thank the member for Marc-Aurèle-Fortin for sharing his time.

I am proud to rise today in support of budget 2025. The budget would address the global challenges Canada is facing and seize the opportunity to reshape our economy and our nation’s future.

I want to thank the many residents of Mississauga—Lakeshore who have spoken to me directly at town halls and constituency meetings to share their input on what they wanted to see in budget 2025. This budget reflects their priorities. It also speaks to the priorities and values of our new government: making the necessary investments to build, protect and empower Canada.

Canada stands at a moment of profound transformation. Global economic systems, trade routes and alliances are shifting faster than at any point in recent memory. This instability is creating challenges for workers, families and businesses, but it also offers opportunities for Canada to chart its own course.

Global trade disruptions, tariffs and slower growth are being felt across Canada. Families are struggling with higher costs, young people are finding it harder to start careers, and small businesses are delaying plans because of unpredictability. However, the economy remains steady, with growth projected at just above 1% in 2025. This stability reflects Canadians' resilience and determination.

The government rejects the path of austerity and retreat. Instead of slashing programs and waiting for recovery through trickle-down economics, Canada will invest decisively in itself, strengthening national capacity, independence and opportunity.

Budget 2025 has been designed as a generational response to historic challenges. Canada enters this period from a position of fiscal strength, with the lowest net debt-to-GDP ratio in the G7 and one of the smallest deficits in comparison. Debt is a function and it is relative to wealth. This stability proves there is room for bold, strategic investments. Over the next five years, public and private initiatives are expected to generate more than $1 trillion in total investment.

The past year has shown that relying heavily on a single market or supplier leaves the country vulnerable. This budget commits to helping strategic sectors, including steel, aluminum, the automotive industry, forestry and agriculture, adapt and expand. A $5-billion strategic response fund would help support companies in retooling, designing new products and accessing new markets. A $1-billion liquidity package would support small and medium-sized businesses through uncertainty, and new retraining programs will prepare 50,000 workers for emerging industries.

To build our strength at home, we need to focus on who we buy from and who buys from us. Canada’s trade diversification strategy aims to double overseas exports within a decade, unlocking $300 billion in new opportunities, while a new buy Canadian policy would ensure that federal procurement prioritizes domestic suppliers.

From steel in Hamilton and Sault Ste. Marie to aluminum in Saguenay and autos from factories throughout Ontario and across the country, we are creating good jobs in our communities and supporting Canadian industry in the face of illegal and unjust tariffs, building resilient domestic supply chains that Canadians can rely on. The buy Canadian policy is how we make sure that every public dollar we spend contributes to a stronger, more secure and more prosperous Canada for everyone. These initiatives will strengthen domestic capacity, ensuring that future economic shocks can be met with made-in-Canada solutions.

Strong nations build strong foundations. Budget 2025 introduces the largest wave of infrastructure investment in decades. Projects would modernize highways, ports, airstrips and energy grids to connect regions and strengthen supply chains. A dedicated Arctic infrastructure fund and a build communities strong program would expand opportunity to northern and rural areas, creating high-paying jobs and new corridors for trade and travel.

For many Canadians, home ownership feels increasingly out of reach. Under the leadership of Ana Bailão, a good friend, Build Canada Homes would tackle this crisis, together with the government, by doubling the pace of construction over the next decade, leveraging Canadian-made materials, domestic skilled trades and strategic partnerships across the country.

To make daily life more affordable, the government has reduced personal income taxes for 22 million Canadians. The budget would make the national school food program permanent and ensure the automatic delivery of federal benefits to 5.5 million low-income households. Together, these measures would target the immediate cost of living pressures while larger investments take shape.

A confident, sovereign nation must be able to protect itself. Budget 2025 would commit $30 billion over five years, the largest defence investment in decades, to modernize Canada’s military, reinforce Arctic security and support NATO and NORAD commitments. These funds would expand the shipbuilding, aerospace and cybersecurity industries while creating domestic jobs in technology and advanced manufacturing. This budget would invest in both protection and prosperity, building Canadian capabilities that defend our national sovereignty and drive international growth.

Raising productivity is central to long-term prosperity. The budget responds with targeted measures to mobilize talent, ideas and investment. New incentives would encourage research and commercialization in clean technology, quantum computing and artificial intelligence. Expanded tax credits would reward business innovation and worker training, especially in high-demand sectors such as construction, advanced manufacturing and renewable energy. The government would work with unions and employers to help Canadians upgrade skills and transition into new, better-paying careers.

Major investment must be matched with fiscal discipline. The government would introduce a capital budgeting framework to clearly separate everyday operating expenses from long-term growth investments. This transparency would ensure that public dollars are used strategically to strengthen productivity and prosperity. We are committed to balancing the operating budget by the 2028-29 fiscal year, with a steadily declining deficit-to-GDP ratio. As someone who has tabled a balanced budget, I can say it is harder than it looks, but trust us when we say the Prime Minister is the only leader in this House who has the experience and ability to get us there.

This is not short-term. This goes beyond election cycles. Years ahead, many others will be doing the ribbon cutting for the initiatives taken by this government today.

Over five years, we would achieve $60 billion in savings. We would protect vital social programs, like $10-a-day child care, dental care and pharmacare and redirect resources away from duplication and inefficiency. This would mean smarter government, fewer overlaps, modernized service delivery and leaner operations. The result would be a smarter, leaner government that invests ambitiously, but spends responsibly. It is about investing and, at the same time, sustaining those important social programs that Canadians and our neighbours value.

Generational investment is not only about infrastructure; it is about people. The government would expand opportunities for Canadians to learn, work and succeed. Training and mobility programs would help young people and workers move into trades, clean energy and advanced manufacturing. Support for unions and apprenticeships would ensure that Canadians build the future with their own hands.

Economic transformation will depend on a workforce that is adaptable, skilled and secure. Budget 2025 would strengthen this foundation by aligning immigration policy, education and labour market strategies to fill shortages and open pathways for every generation. When Canadians have access to meaningful work, affordable housing and reliable public services, confidence grows. Prosperity is strongest when it is shared, and inclusivity remains at the heart of this government’s approach.

Budget 2025 is rooted in confidence in Canada’s people, resources and values. It acknowledges uncertainty, but refuses to be defined by it. The plan would position Canada to lead in energy, critical minerals, technology and innovation, while safeguarding the environment and social programs that define national identity. Canada’s advantages are clear: abundant resources, world-class talent and stable democratic institutions.

Through targeted spending, disciplined fiscal management and deep collaboration with the provinces, indigenous communities and private partners, this government would transform resilience into growth. Every investment, from homes to highways and training to trade corridors, would serve one purpose: ensuring that Canadians shape their own destiny.

The choices made in 2025 will shape Canada’s next generation. The government’s path is one of investment and empowerment. We will continue to foster growth and support Canada and Canadians for a better future.

[Bob Zimmer, Conservative, Prince George—Peace River—Northern Rockies, BC]

Mr. Speaker, I want to know who the member got this speech from. It sounds like it was made 10 years ago by Justin Trudeau and his cabinet then. What has changed? Justin Trudeau took power over 10 years ago, and the Liberals have been in power for 10 years.

What has changed? The debt used to be $600 billion. It is now close to $1.3 trillion and will be $1.6 trillion by 2030. That is what has changed. In B.C., we have lost 29 mills and thousands of jobs. Ultimately, the bill lands in the taxpayers' back pocket. The Liberals are maxing out their credit card and not getting many results.

My question is simple. When will the Liberal government finally start to understand and respect that it is spending taxpayer dollars? When is it going to start respecting—