September 10, 2025
RED FM News Desk
Experts say that in the upcoming fall budget, Ottawa must be transparent with Canadians to justify a significant shift in spending from government programs toward defense and infrastructure.
Carney’s government announced several spending measures in the short spring session of Parliament, including a one-percentage-point income tax cut and plans to increase military investment to meet NATO commitments.
The government has framed its Bill C-5, legislation designed to fast-track major projects, as a response to Canada’s deteriorating relationship with the U.S. and the need to strengthen the domestic economy against U.S. tariffs.
Sahir Khan, vice-president of the Institute of Fiscal Studies and Democracy at the University of Ottawa, stated that the fall budget will give Canadians their first look at how the trade war has affected the federal government’s economic outlook and its revenue.
Many observers expect the budget to reveal that Canada’s federal deficit for this fiscal year has grown since Ottawa’s last update in late 2024, which projected a deficit of $42.2 billion for 2025-26.
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