The federal government tabled its first budget under Prime Minister Mark Carney last week.

The budget proposes significant investments in housing, infrastructure and defence (to the tune of $81.8 billion), to be funded by an increased debt load as well as major cutbacks to the federal public service. 

The Liberals plan to borrow $78.3 billion to finance this budget, almost double the $42.2 billion deficit the Liberals presented in the 2024 Fall Economic Statement. 

The government claims this deficit will drop to $65 billion next fiscal year and that by 2029-30, it will be down to $57 billion. 

In terms of cuts, the Liberals plan to significantly reduce the cost of running the government by $60 billion over five years, including cutting 40,000 jobs from the public service. This, it says, will enable it to balance its operational spending over the course of the next three years.

The Liberals are pitching this increased deficit to Canadians with the promise it will boost Canada’s economy over the long term by investing in industries and infrastructure that will generate wealth and jobs, instead of funding the day to day operations of this country. 

“You should never borrow money to pay for groceries or pay for current expenses. You always try to manage your current expenses with your income. And that’s what this budget is intended to do,” said MP Sophie Chatel in a conversation with THE EQUITY about what this budget offers to people living in the Pontiac. 

“You borrow money to buy a house. You borrow to build that facility, you borrow to buy the equipment. But that facility and equipment will produce a lot of goods you’ll be able to sell. [ . . . ] At a time when Trump is imposing significant tariffs, we need to invest in ourselves. We need to invest in our defense. We need to build homes. We need to invest in infrastructure that will grow our economy.”

The government has already survived two confidence votes in the House of Commons, triggered by Bloc Québécois’ call for the House to reject the budget. 

Now the minority Liberal government is working to get the two more votes it needs to pass this budget later this month, and possibly as soon as Nov. 17. 

As opposition MPs deliberate on whether to support this spending plan, or not, here is a breakdown of some of the ways this budget might support people in the Pontiac.

School food program made permanent

When it comes to measures designed to directly help Canadians with the cost of living, there is not much in this budget that had not already been announced prior to its tabling. 

Chatel pointed to a one per cent tax cut for people earning under $100,000 annually, as well as the Liberal plan to make the National School Food Program permanent as two measures that will be felt in the wallets of Canadians. 

The National School Food Program, put in place just a few months ago, was originally set to last until 2029. This budget makes it permanent, promising it will feed 400,000 kids every day, saving families money at the grocery store – as much as $840 a child annually, according to Chatel.  

“Partly why you haven’t seen this yet in Quebec is because Quebec is the one who will deploy that program, and so they’re still negotiating with an organization that will deliver the food in schools,” she said.

“I’m very confident that very soon in Pontiac schools lunches will be delivered to children. What it means for families is the bill will be lower at the grocery because you won’t have to worry about your child getting healthy and nutritious lunches at school.”

Chatel said schools ranked 10, 9, 8, and 7 on Quebec’s Indice de milieu socioéconomique (IMSE) will be prioritized for the meal service. In some cases, schools ranked IMSE 6 may also be included.  

Tax break for investments in manufacturing,

processing equipment

The budget proposes a tax deduction for businesses that invest in machinery or other infrastructure that will help them process or transform raw products. 

“The idea is to process more of our foods here in Canada instead of shipping raw product abroad and buying it transformed. [ . . . ] All of our raw materials need to be processed and turned into finished products and that’s what that superdeduction is all about,” Chatel said. 

She said businesses like the Egan Mill in Quyon, or the Laiterie de l’Outaouais would be examples of those that could benefit from this measure. 

“In the Outaouais, this will support a growing agri-food processing sector,” she said. 

Housing affordability

Last week’s budget puts forward several measures intended to increase the housing supply in Canada, including  affordable housing. 

Notably, it pledges to invest $13 billion over the next five years in Build Canada Homes, a new federal agency it has created with the sole task of dramatically increasing this country’s housing supply by investing in factory-built housing and offering tax rebates for developers building what the government calls “purpose-built” rental housing. 

“What’s important too is the procurement. We will require that every product is from Canada, unless it’s unavailable – Canadian wood, Canadian steel, aluminium, technology, workers,” Chatel said. 

In terms of making sure some of these homes end up in the Pontiac region, she said “municipalities that can organize to really identify the needs and the projects will be the ones that are the most successful.”

The budget also upholds the previously announced removal of GST on new homes under $ 1 million, a measure already before parliament in Bill C-4. 

Money for municipal infrastructure 

Included in this budget is a new fund which will invest $51 billion over 10 years to help municipalities fund major infrastructure projects needed to bring more housing development to their communities. 

This money can be used for everything from roads and water systems to community centres, parks and public transit. 

“We listened to municipalities that said, ‘Look, building more homes is great, but we need infrastructure and we don’t have it,’” Chatel said.

“The budget will invest massively in municipal infrastructure. Of course there will be discussions with Quebec on how it will be delivered, and it’s always taking a bit longer with Quebec than with other provinces [ . . . ] We hope that this will be finalized very soon, and help will be able to be deployed to municipalities who really need it.”

The budget also allocates $5 billion over three years to help provinces improve healthcare infrastructure. 

“It will be up to the province [to decide what facilities receive the money], but it’s significant and it should really help to build more hospitals,” Chatel said. 

“It’s a way to invest in health care but not in the delivery of services, which is an exclusive role and responsibility of the province.”