Yesterday the Liberal Government of Prime Minister Mark Carney tabled their first budget in the House of Commons. It was the first Federal budget that Canada has had since April 2024, and it came at a very consequential time for the country. The budget responds to significant global economic shifts, with Canada facing unprecedented U.S. tariff increases and greater geopolitical changes that require a response. We invite you to review many of the details at the following sources:
Niipaawi's Insights
Budget 2025 offers many large-scale ideas with much larger resources than Canadians are used to seeing, while at the same time offers fewer granular details that we have become used to seeing in past budgets. In normal times that would be seen as a bug, but in these difficult times, that is feature that allows for flexibility in attaining the countries goals.
While we will leave it to others to assess the generation nature of this budget, this is a different budget that speaks to the changing needs in this moment. This budget has a clearly been built around supporting and promotion Canadian sovereignty and ensuring that Canada is less dependent on any one specific ally or neighbour. This theme shines through in the specific focuses of economic growth and infrastructure that seeks to diversify Canadian markets and support getting our goods to markets. But this is especially true when it comes to defence, with over $82 billion in budget commitments towards ensuring the Canadian Forces are able to defend us here at home. We have not seen this kind of proposed spending in generations. Along with the creation of a new Defence Investment Agency and the centralization of defence procurement, it is clear that the government intends for these proposals to not just be words, but be brought to fruition.
Between the investments in infrastructure, defence and strengthening our economy in these difficult times, this budget does create opportunities for Canadians and Canadian businesses to step forward and be part of the solution to the crises that we are facing. This budget offers a unique chance to help build our future and build it in a proudly Canadian way.
Cam Holmstrom, Principal
The Canadian federal budget for 2025introduced major new investments and policy directions that have significant implications for the people in Canada’s Arctic. These initiatives span critical infrastructure, Indigenous partnerships, economic development, sovereignty and security, all of which are intended to strengthen Canadian sovereignty in the Arctic and economic development in northern communities. But questions remain on how quickly and effectively the Government will deliver on these promises and how will program cuts in the Budget negatively impact people in Northern communities.
Budget 2025 announced a new $1 billion Arctic Infrastructure Fund, to be spent over four years on major transportation projects including airports, seaports, all-season roads, and highways for both civilian and military use. The Budget focus on a “dual-use infrastructure” approach is intended to help meet community needs as well as bolster defence and sovereignty. The Budget includes an additional investment of $25.5 million for Crown-Indigenous Relations and Northern Affairs Canada, and $41.7 million for the Canadian Northern Economic Development Agency, to accelerate regulatory processes and proactive consultation with Indigenous governments and local northern communities to identify and address regional priorities. Though the $1 billion Arctic Infrastructure Fund is a positive development concerns have been raised that single large-scale projects, like the Mackenzie Valley Highway, could consume most of the fund, leaving limited capacity to address the infrastructure deficits in smaller communities across the North. Furthermore, while investing in improving consultations with Northerners is welcome it highlights the ongoing concerns about how the Government will engage Indigenous governments and community leaders in identifying priorities and ensuring Government procurement supports Northern economic development.
To help address the critical housing shortage in Northern communities Budget 2025 included new housing and infrastructure investments, including $2.8 billion for urban, rural, and northern Indigenous housing. The Budget also increased Canada Infrastructure Bank’s investment target for Indigenous infrastructure from $1 billion to $3 billion. While new funding for housing is much needed concerns have been raised that the Government may at the same time cut social programs because of the two percent budget cut - $2.3 billion by Spring 2030 – to Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada. In particular Northern advocates have highlighted the uncertainty facing social programs in the Arctic, noting that the budget lacks detail about their future beyond 2026 for critical initiatives like food vouchers and Inuit child programs that do not have guaranteed longer-term funding.
The Liberal Government’s focus on the importance of Canada’s Arctic is clearly evident in Budget 2025 and the new initiatives they announced could have a significant impact on strengthening Canadian sovereignty and Canada’s overall economic development. But budgets are only blueprints and how quickly and effectively the Government moves to implement these initiatives and demonstrate real impact versus a compelling narrative will be key.
Dan Demers, Senior Associate
