Canada's upcoming budget to emphasize tax reforms and competitiveness
The federal government plans to centre its next budget on tax measures aimed at boosting innovation, investment and the competitiveness of Canadian businesses.
Ottawa is preparing a budget that will prioritize tax reforms intended to stimulate economic growth and improve the competitiveness of Canadian firms, senior government officials said. The finance plan, slated for release on Thursday, is expected to include measures that reduce regulatory burdens and encourage investment, as part of Prime Minister Mark Carney’s strategy to raise living standards.
"It’s a growth and competition budget," a senior government source said. "We’re trying to create an investment supercycle in Canada."
Economists have long argued that overhauling Canada’s tax system could enhance productivity, wages and job creation. The budget is also likely to address the needs of small and medium-sized enterprises, reflecting Carney’s 2025 pledge to review corporate tax policy.
A productivity mega-deduction announced at a recent investors’ summit in Toronto may be incorporated into the budget, though it could also be enacted through separate legislation. Additional priorities cited by the government include strengthening trade ties with countries such as China and India, upgrading export-related infrastructure, accelerating approvals for major projects and promoting internal trade.
Business groups have expressed growing confidence in the direction of the Canadian economy under the current administration.