Federal budget’s deficit spending is lower than some projections

Canada’s economy has faced a challenging year. Growth projections are down, yet the federal government’s 2025 budget commits billions to offset U.S. tariffs and adapt to shifting global trade dynamics.

The deficit for this fiscal year is expected to exceed $78 billion—but it could have been worse. “I was expecting that the deficit would move into 100 billions of dollars,” says Vivek Astvansh a Professor of Quantitative Marketing and Analytics at McGill Desautels.

“I am pleased and a bit relieved that the government is not trying to borrow more than what it can earn as revenue.”