Mr. Speaker, it is my turn to speak to Bill C‑15, and therefore to the budget. I am sure that many of my colleagues reread it every night. Before beginning, I would like to sincerely thank all the members of the Standing Committee on Finance. After some challenging discussions and debates, we managed to finish our work earlier this week and send the bill back to the House. I really want to thank our colleagues from all the parties. I think that we fulfilled our duty as parliamentarians, and that is something that benefits all of us, the nation and the prestige of this institution.
Let us return to Bill C‑15. As we know, the global context is rapidly changing, leaving economies, businesses and workers under a cloud of uncertainty. Quite frankly, a lot of people no longer know what to make of it. There is a great deal of uncertainty, volatility and ambiguity. That is why the Government of Canada is focusing on what it can control, which is building a stronger economy to make life more affordable for Canadians. We are doing this by forging new trade and investment partnerships abroad and strengthening our capacity at home. This allows us to provide Canadians with good job opportunities and better wages from coast to coast to coast. Our government has a plan to ensure that Canadians have the support they need, and now is the time to implement that plan.
We heard many comments from various groups and analysts. We heard a number of opinions on the Government of Canada's fiscal framework. People ask us why we are doing this, why we are doing it at this scale and whether we really have the means to do so. We are taking action now because the time to act is now. It is not three years or five years from now. We must take action now to help us get through what our Prime Minister recently said in Davos is a rupture in the world order. This world order served us well in Canada for about 30 years. However, the world has changed and the time to act is now.
Obviously, there are no secrets in the budget: There is a deficit. This deficit is clearly indicated in the budget. The deficit for the 2025-26 fiscal year is $78 billion, or 2.5% of GDP. We are not hiding it. We are not playing any tricks. It is clearly stated in the budget documents. Our friends across the way keep saying that we should have limited the deficit to perhaps $40 billion or even less than that. However, they have never told us where they would have found $30 billion or $40 billion in savings. They have not told us what they would have cut in the budget to achieve that.
This also means that, with this deficit, Canada's public debt stands at 42% of GDP. Of course, 42% of GDP is no small amount. We all agree that it is a significant debt. We are talking about hundreds of billions of dollars, but it is 42% of Canada's GDP. We always need to keep in mind the order of magnitude. We are often presented with financial indicators of debt and deficit in absolute terms. A trillion dollars in debt, or $1,000 billion, or nearly $80 billion in deficit are really shocking numbers, but we must put them into perspective in relation to the size of the economy and the capacity of that economy to absorb such levels of debt.
What we have noticed and observed since the budget was tabled in early November is that the financial markets are not in distress at all. They are absorbing this deficit very well. Canada still has a AAA credit rating, one of the best credit ratings in the world, giving us privileged access to capital markets to enable us to implement our plan. I agree that our plan is ambitious, but we absolutely have the ability to implement it. I will say it again: The time to do it is now, and now is when we are doing it.
At the end of the budget period, in fiscal year 2029-2030, we will still have a deficit of 1.5% of GDP. We are going from 2.5% to 1.5% of GDP. Once again, this is entirely manageable, and Canada's public debt will represent 43% of GDP. We are going from 42% to 43% of GDP. With numbers like these, I can assure the House that financial markets will continue to welcome Canada's debt. We will therefore be able to continue financing our activities without any issues, still with a AAA credit rating, one of the best in the world, which will allow us to achieve our objectives.
I want to come back to the budget. The government quickly introduced several new measures to lower costs, which included cutting taxes for 22 million Canadians, boosting residential construction and protecting and expanding crucial social programs. We believe that we must be able to foster and support economic development, while always taking care of our people.
We must always be able to provide the social programs that we truly value and that set Canada apart. What makes Canada what it is, in large part, is the range of social programs that we have had in place for a long time—these are not recent developments—and the fact that we continue to support these programs and make them more accessible. This continues to make life affordable for many Canadians.
That is another point of contention, so to speak, between our opinion and that of our friends across the floor, who believe that social programs are expensive. Of course, these programs are not free, but they help keep life affordable for millions of Canadians, whether through the Canada child benefit or affordable day care. Both of these programs help many families and enable many women to join the labour market. These programs cost money, but at the same time, they make life affordable for many Canadians. If we decided to make changes now and eliminate these social programs, it would be completely counterproductive, because it would make life much less affordable for millions of Canadians.
Members on the other side tell us that when we do these things, it creates inflationary deficits: Liberal inflation. I would need far more time than I have to explain why that is not the case.
First, inflation in Canada is currently well under control. I understand that many of my friends on the other side are not very fond of the Bank of Canada. In fact, their leader said in a somewhat reckless statement that he would have fired the Governor of the Bank of Canada.
It turns out that the Bank of Canada was one of the first major G7 central banks to successfully bring inflation back within the target range of 1% to 3%. The Bank of Canada's goal of controlling inflation without creating a recession was successful, even though many said that it was inevitable. That inflation was not the result of budget deficits; it was an international phenomenon. There was COVID‑19, then the resurgence of COVID‑19. There were a lot of factors, and it affected everyone, in Canada, the United States, Europe, Japan and Korea. All developed countries experienced a sharp rise in inflation, and we were the first to manage to bring it under control.
It is important to not confuse “inflation”, which is the rate of price increases, with “price levels”. The cost of living involves price levels. After a few years of high inflation, prices are very high, and there are indeed affordability challenges. There are cost-of-living issues, particularly with respect to food. However, as I said earlier, if we were to start cutting social programs now, we would be making life much less affordable for millions of Canadians.
The budget also includes measures to support consumers. Specifically, Bill C‑15 includes a few measures to make life more affordable. For example, it includes measures to promote competition in order to support businesses and consumers. More competition is good for the economy. Healthy competition pushes businesses to operate more efficiently, to innovate so they can stand out and to reduce operating costs.
In budget 2025, we are also addressing structural issues that have held the Canadian economy back for far too long. We will increase competition in areas where it is weak. We will simplify regulations in areas where they are too restrictive. I want to say just one word on this matter. Yes, regulations can become burdensome. Regulations can become an obstacle, but often there are good reasons to have regulations. We must always find a balance.
I see that my time is up. I have a lot more to say, but I will close by saying that we tabled a very good budget.