Budget 2025 walks fiscal tightrope: CPA Canada

OTTAWA, Ontario, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Amid weaker-than-expected economic projections and constrained fiscal capacity, Budget 2025 attempts to balance supporting impacted sectors while keeping long-term growth at the centre, according to CPA Canada’s chief economist.

“Growth is nowhere near where it could be due to trade frictions, but the fiscal reality is tight,” says CPA Canada chief economist David-Alexandre Brassard.

“The government has focused on spurring long-term productivity through targeted investments and tax measures, while phasing out several existing credits, which will help to simplify Canada’s tax system.”

The budget reinforces trade diversification, competitiveness, incentives for private investment, increased defence spending and a continued focus on housing.

At the same time, rising deficits and a growing debt-to-GDP ratio signal real constraints on fiscal levers.

“The federal government has limited runway and deficits will rise before improving,” Brassard adds.

Prime Minister Mark Carney’s government slashed several tax measures introduced by the previous government, such as the underused housing tax, luxury tax on subject aircrafts and vessels, and the Canadian entrepreneurial incentive.

“There’s not a lot to unpack on the tax front in this long-awaited budget,” says John Oakey, CPA Canada’s vice-president of tax.

“The government focused on economic productivity by expanding the SR&ED and critical minerals tax credits and committing to accelerated capital deductions, but left behind many promises outlined in their election platform.”

While the removal of certain tax credits aligns with CPA Canada’s call for a simpler tax system, CPA Canada is disappointed that Budget 2025 does not include a more comprehensive review. The organization pledges to continue advocating for such a review, as outlined in its recently released white paper, “CPAs Renew Calls for a Tax Review: A Roadmap to Modernize Canada’s Tax System.

For access to our white paper or to schedule an interview, please contact media@cpacanada.ca.

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