Canada Plans Permanent Shift of Federal Budget to Fall Amid Rising Deficit

Prime Minister Mark Carney's Liberal government in Canada has announced a permanent shift in the federal budget cycle, moving the release of the main budget from spring to fall, with the first budget under this new schedule set for November 4, 2025. This change aims to improve fiscal planning and transparency, offering more predictability to businesses, investors, and parliamentary committees by aligning budget timing closer to the start of the fiscal year and the construction season. Finance Minister François-Philippe Champagne highlighted that this shift allows parliamentarians more time to review spending plans before approval and enables better-timed fiscal decisions, including a new capital budgeting framework that distinguishes between operating and capital expenditures. The government also plans to enhance focus on capital investment to stimulate infrastructure, housing, and private sector growth, addressing concerns over stalled business investment since 2015. The typical fiscal update will now be released in spring, reversing the previous schedule, which is expected to help builders and other stakeholders plan ahead more effectively. Additionally, the parliamentary budget officer forecasts the upcoming budget will see the federal deficit rise to nearly $70 billion.