Canadians will not be seeing a detailed federal budget anytime soon despite it being over a year since the last complete budget was tabled in Parliament.
Finance Minister Francois-Philippe confirmed on Wednesday that the Liberals don’t plan to release a budget in the coming months, but will instead present a fall economic statement. Champagne also revealed that he signed a directive to prioritize a middle-class tax cut in the upcoming session of Parliament.
Ottawa will cut the lowest personal income tax rate to 14 per cent from the previous 15 per cent on July 1.
However, a formal budget will not be presented for the foreseeable future.
“Tax cut for the middle class, we’re going to be introducing a Ways and Means motion as we enter back into Parliament to table legislation. Then there will be a throne speech and then we’ll present a fall economic statement,” Champagne told reporters following the Liberals’ first cabinet meeting Wednesday.
The last full federal budget was delivered by Finance Minister Chrystia Freeland on April 16, 2024, marking the final budget under prime minister Justin Trudeau’s 29th Ministry, before Mark Carney succeeded him as Prime Minister.
“This is deeply worrisome,” said president and CEO of the Canadian Federation of Independent Business Dan Kelly. “In addition to the need for a budget to layout spending plans, there is a long list of time-sensitive outstanding items from the 2024 budget, 2024 FES, 2025 promises and the campaign.”
A future budget vote will be a question of confidence for the minority Liberal government. Without a budget, Parliament will have to pass interim supply bills to keep the government funded.
Interim supply typically grants spending authority in broad strokes, limiting detailed program funding until a full budget is approved.
However, a delayed budget will postpone any detailed debates on departmental spending and specific fiscal priorities.
The proposed tax cut is estimated to cost $27 billion over the next five years, according to a document released by the government.
Champagne said he expects other parliamentarians to support their minority government to get this vote passed when asked if he would work with opposition parties.
“This is about Canadians,” Champagne said. “We are in a dire situation.”
He went on to say that “Canadians sent a very clear message” during the election that they “want this Parliament to work for them” and that they “need a break.”
“There have been thousands of business sales since then and entrepreneurs have been advised to file as if the change has happened. But this has not been legislated and CFIB remains unsure when it will be,” said Kelly.
“I have a list of 6 other important tax changes for small business owners like that, including $600M owed to SMEs in the final round of carbon tax rebates. We need a budget to get these across the finish line.”