Business leaders have outlined a comprehensive wish list for the upcoming federal budget, with expectations that Prime Minister Mark Carney’s administration will address issues ranging from enhancing the country’s investment climate to providing tax relief and facilitating better access to capital. While acknowledging the government’s need to prioritize its funding allocations, industry representatives emphasize that supporting businesses can stimulate economic growth and ultimately bolster Ottawa’s financial standing.
The Business Council of Canada’s senior vice-president of policy, Theo Argitis, emphasized the importance of initiatives that attract private sector investments and create a more conducive environment for business activities. As the federal Liberals prepare to present the budget on November 4, Carney has characterized it as a blend of cost-cutting measures and strategic investments to navigate the challenges posed by U.S. tariffs and maintain economic stability.
The parliamentary budget officer anticipates a significant surge in Ottawa’s annual deficit to $68.5 billion this year, compared to $51.7 billion in the previous year. Dan Kelly, president of the Canadian Federation of Independent Business, is keen on observing the tariff relief measures included in the budget, particularly seeking broad-based support for small businesses. Kelly advocates for comprehensive tax and regulatory relief instead of numerous ineffective government subsidy programs.
In the tech sector, the Council of Canadian Innovators’ president, Benjamin Bergen, stresses the need for improved access to capital and streamlined reforms, particularly in the Scientific Research and Experimental Development tax incentive program. He underscores the importance of redirecting funds towards domestic Canadian firms and enhancing defense-related initiatives within the budget.
The defense spending hike agreed upon by Canada and its NATO allies prompts questions about its utilization, with a focus on stimulating the domestic defense tech industry. The Council of Canadian Innovators views defense procurement as an opportunity to advance the technology sector, especially in areas like cybersecurity and AI systems.
The Mining Association of Canada urges the government to bolster the mining sector by enhancing domestic supply chains, advancing manufacturing capabilities, and increasing capital funding for mining projects. Recommendations include regulatory enhancements to expedite future mine projects and boost Indigenous involvement in the industry.
Despite the forthcoming budget’s significance, attention remains on the impending review of the Canada-United States-Mexico Agreement (CUSMA), which is slated for next year. The ongoing renegotiation of the trade pact holds substantial importance, especially in light of exemptions shielding Canadian goods from U.S. tariffs while sector-specific duties continue to impact industries like steel, aluminum, autos, and softwood lumber. Argitis underscores the critical nature of the CUSMA renegotiation in comparison to the budget’s contents.
