Debates of June 10th, 2025

Main Estimates and Supplementary Estimates (A), 2025-26

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, it is even more important to tell Canadians that they are going to get an income tax break. Some 22 million Canadians will be eligible for it, including people in Richmond—Arthabaska. I know several of them. They are people who keep up with current events. They will have seen that their tax cut starts on July 1. That is important.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Madam Chair, with all due respect, I was not talking to the minister about the tax cut, but about the revenues collected by the government since April 1, 2025.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, let me remind my colleague that he can find that information among the figures published in the “Fiscal Monitor” for the period from April 2024 to March 2025; the figure given is $495 billion.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Madam Chair, what is the projected deficit for 2025-26?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, once again, my colleague, who is very experienced, can look in the “Fiscal Monitor” for the period from April 2024 to March 2025 and he will see the deficit is listed as $43.2 billion.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Madam Chair, I am asking to know the projected deficit for 2025-26.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, I know my colleague is eager to hear the numbers, I can see it in his eyes, but he will have to wait a little longer. He will get them when we present a budget in the fall.

I can say that he will be proud to present the people of Richmond—Arthabaska with an ambitious budget that will build Canada. I know he wants to build Canada too, because I know him.

[Ginette Petitpas Taylor, Liberal, Moncton—Dieppe, NB]

Madam Chair, let me begin by thanking you for the opportunity to speak this evening before the committee of the whole. I would like to use my time today to describe some of the ways that our government can maximize investments to stimulate growth and produce positive results for our country.

The main estimates tabled in May outline priority investments in housing, the Canadian Armed Forces, indigenous communities, dental care, border services and veterans' benefits. They also include transfer payments to the provinces and territories, such as payments for health care and payments to individuals, like benefits for seniors and persons with disabilities.

Today I will highlight some of these important investments that our government believes will have a lasting impact. The federal government provides significant ongoing financial support to provincial and territorial governments to help them deliver programs and services through four main transfer programs. The largest overall federal transfer is the Canada health transfer, which has increased by $2.6 billion for 2025-26. This will provide predictable long-term funding for health care and supports the principle of the Canada Health Act.

This important federal transfer is provided to the provinces and territories to support health care. It increases every year based on a three-year moving average of nominal gross domestic product growth, with guaranteed funding that will increase by at least 5% per year until 2027-28, and 3% per year thereafter. We all know that a strong and effective health care system is essential to a strong and healthy Canada. We need to work together to improve health care for all Canadians.

The second-largest overall federal transfer to the provinces and territories is the fiscal equalization program. This important program ensures that less prosperous provinces have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation, thereby reducing fiscal disparities between the provinces. Total equalization payments increase each year based on a three-year moving average of nominal GDP growth. The $917-million increase reflects the 3.6% escalator based on GDP for 2024-25.

The Canada social transfer, or CST, is the third-largest federal transfer to the provinces and territories. It supports three broad areas of social programs: post-secondary education, social assistance and social services, as well as early childhood development, early learning and child care. The 2025–26 main estimates increase the CST by just over $507 million, reflecting the 3% annual growth rate provided for in the legislation.

The fourth federal transfer is made through the territorial formula financing, which enables territorial governments to provide their residents with programs and services comparable to those provided in the rest of Canada, at comparable levels of taxation, taking into account the higher costs of services and the unique circumstances of the north. The $330-million increase reflects the indexation of the program, which is based on total provincial, local and territorial government spending, adjusted to account for differences in population growth and changes in revenue-raising capacity in the program formula set out in the legislation.

This important program helps territorial governments fund essential public services such as hospitals, schools, infrastructure and social services, and recognizes the high cost of public services in the north and the challenges territorial governments face in delivering services to many people in small, often very isolated communities.

In these uncertain times, it is especially important that we invest in major national interest infrastructure projects to help make Canada an energy superpower. We want the government to become that superpower. The federal government can provide the Canada Infrastructure Bank, or CIB, with up to $35 billion to support infrastructure projects across the country.

The CIB focuses on priority areas of investment, including public transit, green infrastructure, clean energy, broadband access, and trade and transportation. The $26.1-million increase reflects payments made to the CIB to carry out approved activities outlined in its 2024-25 to 2028-29 corporate plan.

In addition, we are committed to expanding the types of projects the CIB can support to be more aligned with first nations, Inuit and Métis priorities, because we know that efforts to build a strong Canada must include all indigenous communities.

In addition to the important investments we are making at home, we are committed to remaining united with our allies and partners to support Ukraine as it fights for its freedom and security. The $200-million payment to the World Bank Group's financial intermediary fund in support of Ukraine is part of Canada's contribution through the G7 leaders' Extraordinary Revenue Acceleration Loan initiative, which will be used to support projects, programs and activities that meet Ukraine's budget, recovery and reconstruction needs.

In conclusion, the measures in the main estimates that have been put forward today are a very important part of the government's commitment to transparency and the responsible use of public funds to produce results for Canadians.

After the election, not so long ago, we took immediate action to support Canadians. This includes building a more affordable Canada by cutting the goods and services tax, or GST, on new homes up to $1 million for first-time homebuyers to help them save up to $50,000, by lowering the GST on new homes between $1 million and $1.5 million, and by providing tax relief to nearly 22 million middle-class Canadians. Finally, it means that millions of Canadian workers will be able to keep more of their hard-earned money to build a better future.

Responsible spending is about making prudent investments in the priorities that matter most to Canadians. Canada has the tools it needs to succeed, and we remain committed to working every day to protect our workers, families and businesses. The main estimates clearly describe how the government, our government, is responding to the priorities of Canadians who are taking up challenges and seizing opportunities.

With these important investments, we will help build a stronger Canada from coast to coast to coast.

Again, I am thankful for the opportunity to speak today.

Now, I have a few questions for the Minister of Finance.

First, I want to thank my colleague and friend, the Minister of Finance, who is doing incredible work, hard work, to support Canadians from coast to coast to coast.

Lastly, a key aspect of our government's plan is a tax cut for nearly 22 million Canadians from one end of the country to the other.

I wonder if the Minister of Finance could explain to the committee the importance of this tax cut.

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Madam Chair, I thank my colleague for her excellent speech.

She truly gave us an overview of all the measures. She is an experienced colleague who has been serving the people of New Brunswick for a long time. I understand why the people of New Brunswick are proud to have her as their MP. She truly presented all the important things. She talked about the transfers we deliver to the provinces. She talked about the transfers we deliver to individuals. She also talked about national interest projects. She truly gave us a terrific economic overview of what is happening in Canada.

She mentioned several things, but one thing really stands out. She talked about the tax cut for Canadians. Twenty-two million Canadians are going to benefit from it. I even see some of my Conservative colleagues smiling. They know that helping 22 million Canadians is important. We are lowering the first bracket from 15% to 14%. This is very important at a time like this, when people—

[The Deputy Chair, Liberal, Alexandra Mendes]

The hon. member for Moncton—Dieppe.

[Ginette Petitpas Taylor, Liberal, Moncton—Dieppe, NB]

Madam Chair, I want to thank my hon. colleague, the Minister of Finance, for his work.

In my speech, I mentioned the issue of affordable housing. We recognize that here in Canada, and especially in my riding of Moncton—Dieppe, creating more housing continues to be a top priority.

I wonder if the minister could elaborate further on the importance of the policies we have put forward to create more housing in New Brunswick and across Canada.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, I understand why the people of Moncton—Dieppe are so proud to have a representative like my colleague, who speaks up for them here.

She is absolutely right. The motion we moved included a tax cut, but it also included another important measure, namely eliminating the GST for first-time homebuyers. This is important because for homes worth up to $1 million, people can save up to $50,000. This is the kind of help that young families need when they want to buy their first home.

As my colleague from Moncton—Dieppe is well aware, one of our Liberal values is to help people. I think such a measure is important—

[The Deputy Chair, Liberal, Alexandra Mendes]

The hon. member for Moncton—Dieppe.

[Ginette Petitpas Taylor, Liberal, Moncton—Dieppe, NB]

Madam Chair, once again, I would like to thank my hon. colleague for his comments and the work he does on an ongoing basis to help Canadians with the whole issue of affordability.

The minister introduced a measure in the House that eliminated the carbon tax for consumers. I was wondering if he could explain to the committee what steps the government is taking to build the strongest economy in the G7 while investing in making that economy clean.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, again, that is a very important question.

My colleague shone a light on all the tax credits we announced to encourage green investment in Canada. She knows as well as I do that we have succeeded in attracting historic investments in the area of electric vehicles, for example. We even managed to expand the electric vehicle supply chain across Canada.

We have important measures. We want to build the strongest economy in the G7. I would say that Canada is a country that attracts a lot of investment because it provides stability, predictability, the rule of law, which is what investors around the world are looking for.

[Ginette Petitpas Taylor, Liberal, Moncton—Dieppe, NB]

Madam Chair, again, I want to thank my colleague for his comments.

Would he like to comment further on what the federal government is doing to support the middle class as it relates to affordability? What are we doing to help people who often have a hard time making ends meet?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, it is true. We have a major affordability program.

I would like to point out one thing, since I have the Minister of International Trade nearby. I chaired the G7 finance ministers' meeting recently held in Banff. Canada is the envy of the world as the only G7 nation to have a free trade agreement with every other G7 nation. That is quite remarkable. We talked with businesses in New Brunswick about economic diversification and market diversification. That is important.

Once again, I want to thank my colleague from Moncton—Dieppe—

[The Deputy Chair, Liberal, Alexandra Mendes]

The hon. member for Louis-Saint-Laurent—Akiawenhrahk.

[Gérard Deltell, Conservative, Louis-Saint-Laurent—Akiawenhrahk, QC]

Madam Chair, I would like to thank the minister for his presentation, and we now have an opportunity for dialogue.

It has been exactly 88 days since the minister took over the finance portfolio. Members will recall that, on February 4, his predecessor publicly announced that there would be a budget this spring. On March 14, when the current minister took office, did he tell his officials to continue preparing the budget or to stop that work?

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Madam Chair, I would first like to salute my colleague from Louis-Saint-Laurent—Akiawenhrahk. He has a lot of experience and he knows that I have a great deal of respect for him.

I am pleased to see that he is keeping track of the number of days I have been Minister of Finance. I always learn something from my colleague. I just learned that it has been 88 days. I can tell him that I plan to keep on being the finance minister for a long time.

[The Deputy Chair, Liberal, Alexandra Mendes]

Before we continue, could the hon. member tell us how he will be sharing his time?

[Gérard Deltell, Conservative, Louis-Saint-Laurent—Akiawenhrahk, QC]

Madam Chair, I will be sharing my time with two other colleagues. I will only use a third.

The Minister of Finance is very nice, but he did not answer my question. When he took office, did he tell his senior officials to continue preparing the budget or to stop the work?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, an experienced colleague like the member for Louis-Saint-Laurent—Akiawenhrahk knows that, when a minister is appointed to a new portfolio, they have several discussions with departmental officials. What I told them was to build—

[The Deputy Chair, Liberal, Alexandra Mendes]

The hon. member.

[Gérard Deltell, Conservative, Louis-Saint-Laurent—Akiawenhrahk, QC]

Madam Chair, once again, I did not get an answer.

Following the first cabinet meeting on May 14, the Minister of Finance publicly announced that there would be no budget this year, but rather an economic update. However, the Prime Minister rebuked him two days later and said that there would be a budget this fall. Did the minister make a mistake, or did the Prime Minister call him to heel?