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ARTICLE · 10 NOVEMBER 2025

Federal Budget 2025: Investment In Uncertain Times

Gowling WLG
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On November 4, 2025, the Government of Canada tabled Budget 2025, 18 months after the last Budget. In an era of economic and political uncertainty, Budget 2025...

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Pierre Alary
Pierre Alary
Malya Amghar
Malya Amghar
Michael Bussmann
Michael Bussmann
Paul Carenza
Paul Carenza
Laura Gheorghiu
Laura Gheorghiu
Ash Gupta
Ash Gupta
Eric Hendry
Eric Hendry
Carl Hinzmann
Carl Hinzmann
Xin Jiang
Xin Jiang
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On November 4, 2025, the Government of Canada tabled Budget 2025, 18 months after the last Budget. In an era of economic and political uncertainty, Budget 2025 provides for significantly increased spending on defence, housing, and other areas, and projects a deficit of $78.3 billion for 2025–26, well in excess of last year's estimate.

Budget 2025 was fairly light on taxation measures. There are no proposed increases in corporate or personal tax rates and, for the most part, the proposed tax measures are aimed at streamlining certain provisions or proposing tax integrity measures (with limited fiscal impact).

For the business community, the most significant measure proposes to allow immediate expensing of the acquisition cost of buildings to be used in manufacturing and processing, which, together with the proposal to allow the immediate (100 per cent) expensing of machinery and equipment, is intended to incentivize Canadian-based manufacturing.

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