{"id":266921,"date":"2025-11-07T03:35:08","date_gmt":"2025-11-07T03:35:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/266921\/"},"modified":"2025-11-07T03:35:08","modified_gmt":"2025-11-07T03:35:08","slug":"will-canadas-new-federal-budget-encourage-investment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/266921\/","title":{"rendered":"Will Canada&#8217;s new federal budget encourage investment?"},"content":{"rendered":"<p class=\"c-paragraph\">Experts are cautiously optimistic that the federal government\u2019s plan to spur business investment will move the needle on better productivity and economic growth.<\/p>\n<p class=\"c-paragraph\">This week\u2019s budget, Prime Minister Mark Carney\u2019s first since taking office, looks to make Canada\u2019s economy a more attractive place to invest by promising billions of dollars for infrastructure and new tax opportunities for businesses.<\/p>\n<p class=\"c-paragraph\">The measures should have a positive effect on investment, but it remains to be seen how the plan will be executed, said Rachel Samson, vice-president of research at the Institute for Research on Public Policy.<\/p>\n<p class=\"c-paragraph\">\u201cThe question is, will the private sector respond to these initiatives and will they invest? (Is it) enough to overcome some of the barriers they face, such as economic uncertainty (and) trade uncertainty? Have they calibrated these incentives to be enough to push businesses over the edge towards investment?\u201d she said.<\/p>\n<p class=\"c-paragraph\">The <a href=\"https:\/\/www.bnnbloomberg.ca\/business\/2025\/11\/04\/federal-government-plans-tax-changes-to-enable-1-trillion-boost-to-economy\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.bnnbloomberg.ca\/business\/2025\/11\/04\/federal-government-plans-tax-changes-to-enable-1-trillion-boost-to-economy\/\">budget promises to enable $1 trillion in total investment<\/a>, which it says could raise future gross domestic product and purchasing power for Canadians. <\/p>\n<p class=\"c-paragraph\">The budget plan includes new tax credits, including a \u201cproductivity super-deduction\u201d allowing businesses to write off a larger share of new capital investments. It also enhances the Scientific Research and Experimental Development tax incentives, which the government said will help businesses conduct research. <\/p>\n<p class=\"c-paragraph\">\u201cLagging productivity growth is one of the challenges we face,\u201d Samson said. <\/p>\n<p class=\"c-paragraph\">\u201cCertainly, things like the tax incentives that they\u2019ve implemented should make a difference there, encouraging businesses to make those investments in equipment and technology that will improve their productivity and Canada\u2019s productivity.\u201d <\/p>\n<p class=\"c-paragraph\">She added that the productivity super-deduction includes measures for \u201cimmediate expensing of productivity-enhancing assets,\u201d such as patents and data network infrastructure. <\/p>\n<p class=\"c-paragraph\">\u201cThose types of things have the potential to improve the productivity of businesses. We know businesses are not investing enough in Canada in those types of things. Hopefully, this is enough to tip the balance and have those businesses invest,\u201d she said. <\/p>\n<p class=\"c-paragraph\">Mahmood Nanji, a policy fellow at the Ivey Business School and a former associate deputy minister at the Ontario Ministry of Finance, said the government\u2019s strategy is anchored around growing the economy to offset various shocks, like tariffs, a slowing global economy and Canada\u2019s sluggish growth. <\/p>\n<p class=\"c-paragraph\">\u201cIt is an investment-led budget and the government is definitely making a big bet on these investments catalyzing private investment and other institutional investment as well,\u201d he said. <\/p>\n<p class=\"c-paragraph\">This report by The Canadian Press was first published Nov. 6, 2025.<\/p>\n<p class=\"c-paragraph\">Daniel Johnson, The Canadian Press<\/p>\n","protected":false},"excerpt":{"rendered":"Experts are cautiously optimistic that the federal government\u2019s plan to spur business investment will move the needle on&hellip;\n","protected":false},"author":2,"featured_media":266922,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46,714],"class_list":{"0":"post-266921","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-economy","12":"tag-politics"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/266921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=266921"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/266921\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/266922"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=266921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=266921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=266921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}