What Canada's Economic Leaders Expect from Budget 2025

The Business Council of Canada (BCC) today announced the findings of an extensive consultation on the future of the country’s fiscal policy in anticipation of the upcoming federal budget. Serge Dupont, Senior Advisor and Head of Public Policy at Bennett Jones, co-chaired this initiative with Theo Argitis, senior vice president of policy at the BCC.

The consultations brought together the voices of more than 50 of the country’s chief executives and nearly 20 respected economists, investors and former senior officials. The BCC has released a What We Heard report and a Report From The Co-Chairs.

The combined feedback from executives and economists in the consultation converged on the following key principles:

• A difficult starting point. Canada’s fiscal starting point is fragile and long-term spending pressures are mounting. The overriding call is for a clear, credible, and transparent fiscal framework.
• A credible plan is critical to maintaining investor confidence in the economy. Any new deficit financing must be directed exclusively toward economy-enhancing initiatives like trade infrastructure, defence modernization and initiatives that boost investment in the economy.
• A dashboard, not a single anchor. A dashboard approach to fiscal policy should be adopted—one that provides a complete view of fiscal health, rather than judging a budget based on one fiscal anchor. This entails a combination of rules rather than a single one based on any individual metric.
• Structural reforms are essential for long-term sustainability. This includes an immediate and rigorous program review and a clear mandate for comprehensive tax reform aimed at simplifying the tax code and shifting the burden away from investment.

The consultation informed a letter that Goldy Hyder, President and CEO of the BCC, sent to Prime Minister Carney. The letter states that any fiscal latitude in the short term must come with some very important conditions:

• the budget should be part of a broader growth strategy
• the budget needs to be laser focused on investment
• the fiscal plan needs to come with a serious deficit reduction plan in the medium term

Serge had taken a detailed look at the country's fiscal policy earlier in the year in the chapter on Fiscal Pressures and the Sustainability of Public Finances in Canada in the 2025 mid-year Bennett Jones Economic Outlook.

Serge advises Bennett Jones' clients in the private and public sectors on policy, regulation and transactions in the natural resources, infrastructure and financial services industries. Before joining the firm in 2018, Serge was Deputy Clerk of the Privy Council and Deputy Minister of Intergovernmental Affairs. Previously, he served as Executive Director for Canada in the International Monetary Fund; as Deputy Minister, Natural Resources Canada; and in senior positions in Finance Canada.

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