Business leaders have a varied set of priorities for the upcoming federal budget, hoping for improvements in Canada’s investment climate, tax relief, and enhanced access to capital under Prime Minister Mark Carney’s government. While acknowledging the need for trade-offs in funding, industry experts emphasize that supporting businesses can stimulate growth and bolster Ottawa’s fiscal standing.
The Business Council of Canada’s senior vice-president of policy, Theo Argitis, stresses the importance of initiatives that attract private sector investment to counter the scarcity of capital in today’s competitive global market. He advocates for measures that reduce uncertainty for businesses and create a more favorable investment environment.
Scheduled for November 4, the federal budget by the Liberals is expected to focus on a mix of cost-cutting and investment strategies as the government navigates fiscal constraints amidst the economic impacts of U.S. tariffs. The parliamentary budget officer anticipates a significant rise in Ottawa’s annual deficit to $68.5 billion this year, up from $51.7 billion.
Dan Kelly, president of the Canadian Federation of Independent Business, is keen on tariff relief measures in the budget, emphasizing the importance of broad-based support for small businesses. He highlights the need for tax and regulatory relief over inefficient government subsidy programs to spur economic growth in the private sector.
In the tech industry, the Council of Canadian Innovators’ president, Benjamin Bergen, underscores the urgency of improving access to capital, particularly through reforms to streamline the Scientific Research and Experimental Development tax incentive program. He advocates for a more efficient allocation of funds to Canadian firms and emphasizes the importance of defense spending measures in the budget.
As Canada and its NATO allies commit to increasing defense spending, questions arise about the potential impact on domestic defense technology industries. The focus is on catalyzing a domestic defense tech sector rather than relying solely on foreign procurement. The government’s prioritization of critical minerals is seen as an opportunity to boost the technology sector through defense-related investments.
The Mining Association of Canada has urged the government to strengthen the mining sector by enhancing domestic supply chains and advancing manufacturing. Recommendations include increased and accessible capital funding for mining projects, regulatory reforms to expedite mine development, and greater Indigenous participation in the industry.
Despite these industry-specific demands, the renegotiation of the Canada-United States-Mexico Agreement remains a crucial issue looming over the budget discussions. While exemptions shield most Canadian goods from U.S. tariffs, certain sectors continue to face challenges. Argitis emphasizes the significance of the trade agreement renegotiation in shaping Canada’s economic future.
