News Summary

• Budget 2025 presents Canadians with a reading of Canada’s finances through the lens of a new budgeting framework that distinguishes capital from operating spending.
• Done well, capital budgeting will sharpen public understanding of federal finances, strengthen fiscal discipline and promote competitiveness.
• Done poorly, it risks confusion, diminished credibility and, in the worst case, creative accounting — the kind best left to novelists.
• Even well-intentioned accounting reforms can backfire without clear rules, strong oversight and consistent application.