The Carney government’s first budget touts major investments in defence spending and home building while leaving major new social programs from the Trudeau era largely untouched.
Finance Minister Francois-Philippe Champagne told the House of Commons on Nov. 4 that, in the midst of economic uncertainty, this budget tells struggling Canadians that the government is watching out for them.
“We will be there for you now, and for as long as it takes,” he said. “We will do what Canadians do best in times of need, we look after one another, we help each other. That’s the Canadian way.”
But the budget provides few details about what that means for key social programs or individuals hard hit by economic uncertainty.
Trudeau-era programs
The budget offers no new funding commitments for the National Dental Care Program, pharmacare or the national subsidized child care program.
All three programs were hallmarks of Justin Trudeau’s government. All have faced challenges.
Dental associations have flagged concerns with the program’s structure and sustainability, and as of July, about 70 per cent of complex dental care claims were being rejected.
The pharmacare program only covers insulin and contraceptives in some provinces.
And earlier this month, an auditor general’s report said the child-care program is far from meeting key goals, including creating 250,000 new affordable child-care spaces or ensuring inclusive and flexible care.
The child-care program is expected to cost $7.9 billion this fiscal year and to rise to $8.5 billion in 2029-2030. The budget does not specifically enumerate spending on dental or pharmacare.
These programs will continue, but there are no new investments announced, the department of finance confirmed Tuesday.
Disability benefit
The budget provides more details about the Canada Disability Benefit, a new benefit that provides up to $200 a month to low-income adults with disabilities.
Individuals began receiving the benefit in July. As Canadian Affairs previously reported, the rollout of the benefit has been marked by delays and confusion about benefit amounts.
Disability advocates and policy experts have criticized the government for restricting eligibility to those who receive the Disability Tax Credit. Many people with disabilities do not receive the credit because their applications are denied, or because they cannot afford the fees doctors charge to complete application forms.
This year’s budget proposes $115.7 million over four years to cover the costs of applying for the Disability Tax Credit — replacing the $243 million over six years pledged in last year’s budget.
Current Canada Disability Benefit recipients will receive an additional one-time payment of $150 next fiscal year to cover their application costs for the Disability Tax Credit. In future years, people who apply for the Disability Tax Credit will automatically receive a one-time payment of $150 if they receive money through the Canada Disability Benefit.
The government is looking to review and reform the Disability Tax Credit application process, the budget says. It did not provide any details on this review.
Seniors
Elderly benefits are the single largest line item in the budget. Benefits to seniors, including Old Age Security and the Guaranteed Income Supplement, are expected to be $83.1 billion this fiscal year and to rise to $100 billion by 2029-30.
The budget does not earmark any significant new spending for seniors. It also does not mention a National Caregiving Strategy, something the government committed to begin consultations on last year.
That omission disappointed caregiving advocates.
“We are disappointed that the 2025 Budget did not include a plan to develop, fund, or support the national caregiving strategy promised in the Liberal election platform earlier this year,” James Janeiro, director of policy and government relations for the Canadian Centre for Caregiving Excellence, said in a statement to Canadian Affairs.
The budget proposes a new temporary tax credit for personal support workers worth up to $1,100 a year. It will only cover personal support workers in certain provinces and will only be available beginning 2026.
The budget repeats the government’s recent announcement to allow the Canada Revenue Agency to file tax returns for certain low-income individuals with simple tax situations. The government will consult with Canadians about this proposal.
Youth
The budget promises to help about 175,000 youth in the 2026-2027 year. Youth have been particularly hard hit recently, with the youth unemployment rate hitting nearly 15 per cent in September.
The government says it will help youth through investments in the Canada Summer Jobs Program, which helps students find summer work, and the Student Work Placement Program, which helps post-secondary students find employment related to their field of study.
The budget also commits to making the Trudeau-era National School Food Program permanent by providing $216.6 million a year for the program. That funding will only begin in 2029-2030.
This budget is the first to be released since April 2024. The government said it plans to release future budgets in the fall.
There are so many seniors in need of help with housing food and financial help but there is nothing in the budget for us my oas goes up by $8 per month my rent goes up by $42 per month how can we exist it just keeps getting worst
You say to save my info for the next time I report that tells me nobody is listening we will just suffer while imagines flourish I am 84 yes old living in Ont all my life and now we can’t afford a good meal
Where is the 5% increase to the Guaranteed Income Supplement which was a campaign promise by Carney..
Another lie