Key Takeaways
Table of Contents
In the 2025 Federal Budget, presented by Prime Minister Mark Carney, the Canadian government has outlined a comprehensive plan to strengthen the economy and address key challenges.
The budget presents a challenging yet forward-looking fiscal landscape for Canada. While growth projections and deficits remain concerning, several initiatives within the budget focus on innovation, inclusion, and support for businesses. Here's what you should know:
The budget’s fiscal outlook is sobering. GDP growth is projected to slow to 1.1% in 2025 and 1.2% in 2026—almost half of the 2024 projection. Unemployment is expected to reach 7.2% by the end of 2025.
The 2024–25 deficit is forecast at $36 billion, significantly lower than the $48 billion projected last year. However, deficits remain persistent, with the 2025–26 deficit projected at $78 billion and no return to balance on the horizon. By 2029–30, Canada’s deficit is expected to be $56 billion, while the federal debt-to-GDP ratio will peak at around 42% before gradually declining to 39% by 2030.
Keep a close eye on cash flow and plan for potential cost pressures. Use real-time financial dashboards to forecast different scenarios, such as slower sales or rising expenses.
The forthcoming Consumer-Driven Banking Act will allow Canadians to share financial data securely and enable actions like account switching once Canada’s Real-Time-Rail system launches in 2026.
The Bank of Canada will oversee implementation, supported by $19.3 million over two years. Additional $25.7 million over five years supports national security safeguards.
With the Real-Time-Rail system, businesses can expect faster and more efficient transactions, reducing the need for manual reconciliations.
To prepare for open banking, businesses should:
Consider integrating open banking and real-time payment tools into your financial workflows. This will streamline transactions and improve cash flow visibility for your business.
The 2025 Federal Budget introduces plans to regulate fiat-backed stablecoins through legislation. The proposed regulations will require stablecoin issuers to maintain:
Stablecoins are a type of cryptocurrency designed to maintain a stable value relative to a traditional currency, such as the Canadian dollar. They are often backed by reserves of the underlying currency or other assets.
The new regulations will provide a clearer framework for stablecoin issuers, potentially increasing confidence in these digital assets.
If your business engages with digital currencies, including stablecoins, maintain accurate and categorized records for all transactions. This simplifies compliance with the new regulations and risk management. Ensure you're using accounting tools that can handle the unique requirements of digital currency transactions.
By regulating stablecoins, the government aims to promote innovation in the financial sector while protecting consumers and maintaining financial stability. As a business owner, understanding the regulations surrounding stablecoins can help you navigate the evolving financial landscape.
Budget 2025 proposes $925.6 million over five years, starting 2025–26, for AI infrastructure, helping researchers and businesses access domestic AI computing capacity. $800 million of this is from existing funds.
The Minister of Artificial Intelligence and Digital Innovation will collaborate with industry for key projects, while Statistics Canada receives $25 million over six years (and $4.5 million ongoing) to run the TechStat program, tracking AI adoption across the economy.
By investing in AI infrastructure and promoting its adoption, the Canadian government aims to drive innovation, improve productivity, and enhance the country's competitiveness in the global economy. As a business owner, understanding the potential benefits and implications of AI can help you stay ahead of the curve and capitalize on emerging opportunities.
Track technology investments carefully. Categorize expenses for AI tools and automation to take advantage of potential government grants or tax incentives.
The 2025 Federal Budget introduces two significant initiatives aimed at strengthening consumer protection and combating financial fraud.
The government plans to review bank fees, including Interac e-Transfers and ATM fees, with updates expected in 2026. This review aims to ensure that bank fees are fair, transparent, and reasonable.
The government will launch a National Anti-Fraud Strategy, involving banks, telecoms, and tech firms. This strategy aims to combat financial fraud and protect consumers from scams and other malicious activities.
Maintain secure financial records and use accounting software features that flag unusual activity. This reduces risk and simplifies audits or fraud investigations.
Budget 2025 provides opportunities for businesses that are digital-ready, compliant, and adaptable. Some key takeaways are;
At Intuit QuickBooks, we continue to help business owners navigate these shifts—empowering you to stay compliant, innovative, and financially confident in a rapidly evolving economy. Use cloud accounting and automation to streamline operations, forecast cash flow, and prepare for grants or incentives tied to technology and innovation.
Money movement services are provided by Intuit Canada Payments Inc.
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