Discussion · Government Orders
Jean-Yves Duclos Liberal
“Canada's finances are strong despite world uncertainty. We have the lowest net debt to GDP ratio in the G7 and top credit ratings. We are balancing our day-to-day spending a year early so we can invest in building the economy. We are also giving big tax breaks to businesses to invest here. I want the House to support our economic plan.”
“Mr. Speaker, thank you for giving me an opportunity to say a few words about the motion. I think that most members of the House, if not all, are aware that we are living in a world that is changing quickly and in unpredictable ways. In the face of economic uncertainty and international trade tensions, Canada must focus on what it can control. That means strengthening our economy here at home, diversifying our trade relationships abroad and making strategic investments to build an even stronger, more independent and fairer economy for everyone. The cornerstone of this approach is having a sound financial position. Indeed, a sound financial position gives us the means to act. It allows us to protect Canadians when circumstances require it. It also gives us the tools to respond to economic shocks and, more importantly, to invest in the future. Canada is well positioned to weather this period of uncertainty. I am not alone in saying so. According to the latest projections from the International Monetary Fund, or IMF, Canada is expected to have the second-lowest deficit in the G7 this year as a share of its economy. The IMF also forecasts a continued decline in that deficit over the coming years. It is expected to fall from 2.5% of GDP in 2026 to 2.4% in 2027, before falling to 1.7% by 2031. We also have the lowest net debt-to-GDP ratio of any G7 country. Canada is one of only two G7 countries, alongside Germany, to hold a AAA credit rating from all major credit rating agencies. This top-tier rating reflects the confidence that global investors have in Canada’s public finances. It is a significant strength, helping to keep borrowing costs as low as possible while ensuring that we have the capacity to act. Furthermore, we are the world’s most connected economy, with free trade agreements covering countries that represent 1.5 billion consumers. We also offer the most competitive tax system in the G7 for new business investment. Last month, Canada hosted the very first Canada investment summit. The goal was clear: to bring together some of the world’s largest investors and show them what Canada has to offer. The summit laid the groundwork for substantial new investments and strategic partnerships, with nearly $500 billion in new funding and investment commitments in Canada. It is important to attract investors to Canada, but that is not enough. We also need to create the conditions that make them want to invest here. That is why our government announced the new productivity mega deduction. We made that announcement recently, at the investment summit in fact. The productivity mega deduction is a major tax investment. This measure makes Canada the most competitive G7 country for new business investment. It provides businesses with immediate expensing for a broad-based range of depreciable property on a permanent basis. It increases the proportion of assets eligible for immediate expensing from about 15% to over 65%. It will support Canadian businesses of all sizes, small, medium and large, by encouraging them to invest more in their workforce, thereby stimulating long-term growth in Canada. Canada has a financial advantage, and we are determined to protect it. Budget 2025 also marked a shift in the government’s strategy for managing public finances. As the Prime Minister announced recently, the government is on track to balance operating expenditures and revenues in 2027-28, one year earlier than expected. By reducing the government’s operating expenditures, we can invest more in the assets and infrastructure that strengthen our economy. In other words, we are devoting fewer resources to the day-to-day operations of government, but allocating more on building Canada’s economic capacity for decades to come. We must protect that capacity, which is why the government has set clear objectives to guide its budget decisions. First, we must balance operating expenditures with revenues. Second, we must keep the deficit on a downward track relative to the size of our economy. That is how we will preserve Canada’s fiscal advantage in the years ahead. In closing, we have one of the strongest fiscal positions in the G7, the lowest net debt-to-GDP ratio in the G7 and a AAA credit rating. Our responsibility is twofold: to preserve those strengths and put them to work in support of growth and prosperity for Canadians. That means investing in infrastructure and major projects that strengthen our economy. That means attracting more private capital to Canada and encouraging investment. That means giving our businesses the means to invest and grow. That means diversifying our international trade and helping our businesses access new markets. That means maintaining careful management of our public finances. That is exactly what we are doing and what we will continue to do.”
Mr. Speaker, thank you for giving me an opportunity to say a few words about the motion. I think that most members of the House, if not all, are aware that we are living in a world that is changing quickly and in unpredictable ways. In the face of economic uncertainty and international trade tensions, Canada must focus on what it can control. That means strengthening our economy here at home, diversifying our trade relationships abroad and making strategic investments to build an even stronger, more independent and fairer economy for everyone. The cornerstone of this approach is having a sound financial position. Indeed, a sound financial position gives us the means to act. It allows us to protect Canadians when circumstances require it. It also gives us the tools to respond to economic shocks and, more importantly, to invest in the future. Canada is well positioned to weather this period of uncertainty. I am not alone in saying so. According to the latest projections from the International Monetary Fund, or IMF, Canada is expected to have the second-lowest deficit in the G7 this year as a share of its economy. The IMF also forecasts a continued decline in that deficit over the coming years. It is expected to fall from 2.5% of GDP in 2026 to 2.4% in 2027, before falling to 1.7% by 2031. We also have the lowest net debt-to-GDP ratio of any G7 country. Canada is one of only two G7 countries, alongside Germany, to hold a AAA credit rating from all major credit rating agencies. This top-tier rating reflects the confidence that global investors have in Canada’s public finances. It is a significant strength, helping to keep borrowing costs as low as possible while ensuring that we have the capacity to act. Furthermore, we are the world’s most connected economy, with free trade agreements covering countries that represent 1.5 billion consumers. We also offer the most competitive tax system in the G7 for new business investment. Last month, Canada hosted the very first Canada investment summit. The goal was clear: to bring together some of the world’s largest investors and show them what Canada has to offer. The summit laid the groundwork for substantial new investments and strategic partnerships, with nearly $500 billion in new funding and investment commitments in Canada. It is important to attract investors to Canada, but that is not enough. We also need to create the conditions that make them want to invest here. That is why our government announced the new productivity mega deduction. We made that announcement recently, at the investment summit in fact. The productivity mega deduction is a major tax investment. This measure makes Canada the most competitive G7 country for new business investment. It provides businesses with immediate expensing for a broad-based range of depreciable property on a permanent basis. It increases the proportion of assets eligible for immediate expensing from about 15% to over 65%. It will support Canadian businesses of all sizes, small, medium and large, by encouraging them to invest more in their workforce, thereby stimulating long-term growth in Canada. Canada has a financial advantage, and we are determined to protect it. Budget 2025 also marked a shift in the government’s strategy for managing public finances. As the Prime Minister announced recently, the government is on track to balance operating expenditures and revenues in 2027-28, one year earlier than expected. By reducing the government’s operating expenditures, we can invest more in the assets and infrastructure that strengthen our economy. In other words, we are devoting fewer resources to the day-to-day operations of government, but allocating more on building Canada’s economic capacity for decades to come. We must protect that capacity, which is why the government has set clear objectives to guide its budget decisions. First, we must balance operating expenditures with revenues. Second, we must keep the deficit on a downward track relative to the size of our economy. That is how we will preserve Canada’s fiscal advantage in the years ahead. In closing, we have one of the strongest fiscal positions in the G7, the lowest net debt-to-GDP ratio in the G7 and a AAA credit rating. Our responsibility is twofold: to preserve those strengths and put them to work in support of growth and prosperity for Canadians. That means investing in infrastructure and major projects that strengthen our economy. That means attracting more private capital to Canada and encouraging investment. That means giving our businesses the means to invest and grow. That means diversifying our international trade and helping our businesses access new markets. That means maintaining careful management of our public finances. That is exactly what we are doing and what we will continue to do.