Budget 2025: The Role of Federal Spending Review and Reallocation
“Reallocating spending is hard,” write Kevin Page, Clara Geddes, and Mikhaeil Ibrahim-Qayyum, as Canada prepares its 2025 federal budget, set for Nov. 4. The authors note in Policy Magazine that the budget must navigate a weakened economy and geopolitical tensions. Prime Minister Mark Carney says Canada faces a “hinge of history” and plans to run “higher budgetary deficits to finance capital investment” while seeking to balance the operating budget by 2028-29, with reallocations funding defence and infrastructure priorities.
