Business leaders are eagerly anticipating the upcoming federal budget under Prime Minister Mark Carney’s administration, with a diverse set of priorities ranging from enhancing the investment climate to tax relief and better access to capital. While acknowledging that the government will face constraints in funding allocation, industry experts emphasize that supporting businesses can play a crucial role in boosting economic growth and improving Ottawa’s fiscal standing.
The Business Council of Canada’s Senior Vice President of Policy, Theo Argitis, emphasized the importance of initiatives that encourage private sector participation in the economy and foster investment amid increasing competition for capital globally. Argitis highlighted the necessity for measures that reduce uncertainty for businesses and create a more favorable investment environment.
Scheduled for release on November 4, the federal budget is anticipated to focus on a blend of cost-cutting measures and strategic investments to navigate the economic challenges exacerbated by U.S. tariffs. The Parliamentary Budget Officer projects a significant rise in Ottawa’s annual deficit to $68.5 billion for the current year, compared to $51.7 billion in the previous year.
Dan Kelly, President of the Canadian Federation of Independent Business, is particularly interested in the budget’s provisions for tariff relief, emphasizing the need for comprehensive support measures for small businesses. Kelly advocates for broad-based tax relief and regulatory reforms to stimulate economic growth effectively, contrasting them with inefficient government subsidy programs.
In the tech industry, the Council of Canadian Innovators President, Benjamin Bergen, stresses the importance of improving access to capital, specifically mentioning the need for streamlining the Scientific Research and Experimental Development tax incentive program to benefit domestic Canadian companies. The council also seeks clarity on defense spending allocations within the budget.
Questions linger regarding the impact of the proposed hike in defense spending, with a focus on whether the funds will bolster domestic defense technology industries or primarily procure from external sources. The defense and technology sectors present opportunities for collaboration, especially in areas like cybersecurity and AI systems.
Additionally, the Mining Association of Canada has urged the government to bolster the mining sector, enhance domestic supply chains, and promote advanced manufacturing through increased and streamlined capital funding. Recommendations also include regulatory reforms to expedite future mine developments and enhance Indigenous participation in the industry.
Despite the budget’s significance, attention is also drawn to the impending review of the Canada-United States-Mexico Agreement, with exemptions shielding most Canadian goods from U.S. tariffs. The ongoing renegotiation of the trade deal remains a critical issue, particularly for industries affected by sector-specific duties under the agreement.
