Canada to Implement Middle-Class Tax Cut and Increase Defense Spending in 2025 Budget

Edited by: Elena Weismann

Canadian Prime Minister Mark Carney announced the 2025 federal budget will be presented in the autumn. This is due to comprehensive preparation and alignment with international events, including the NATO summit and economic discussions with the United States.

The budget includes a middle-class tax cut and a $9.3 billion allocation to meet NATO's defense spending target of 2% of GDP. The government aims to find savings through increased efficiency, targeting $6 billion in savings for 2026-27 and $13 billion annually by 2028-29.

Unions representing federal workers have expressed concerns about potential cuts to public service personnel and services. Discussions between federal officials and union representatives are ongoing to address these concerns.

Sources

  • Pulse24.com

  • Canada PM Carney says federal budget will come in the autumn

  • Carney pledges tax cuts, defense spending in Canada election platform

  • Federal government’s public service cuts will hurt families across Canada

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