The House Bonus episode: Here’s what you need to know about the federal budget
Nov 4, 2025
Peter Armstrong, CBC's Senior Business Correspondent, delves into the implications of the federal budget. He discusses the alarming $78 billion deficit and the $70 billion allocated for defense and infrastructure. Armstrong highlights the government's shift towards capital projects and corporate investment, assessing the potential risks of recession. He also examines tax incentives aimed at boosting productivity and critiques the long timeline for industrial strategy benefits. The insights into how these changes will affect various sectors make for a compelling listen.
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Shift From Programs To Projects
- The Kearney government shifts spending from social programs to defence and industrial projects.
- The budget prioritizes capital investment and tax incentives over new social program funding.
Business-Focused Long Game
- The budget is heavy on corporate and industrial support to spur long-term growth.
- That strategy risks failing if the economy slips into recession before investments pay off.
Workforce Cuts Fund Reallocation
- Cutting 40,000 federal jobs is presented largely via attrition and retirements.
- The government plans to reallocate roughly $50–60 billion to fund capital priorities.