Carney Budget Sparks Debate Over Corporate Focus and Small Business Neglect
AI-generated image · Bay Street Wire
While business chambers and Ontario officials welcome the federal spending plan, advocates warn that small firms are being left behind amid tariff volatility.
Prime Minister Mark Carney has released a federal budget, as CBC Toronto first reported, outlining $142 billion in spending over five years and $158 billion in increased revenue, though Ottawa still projects a $62 billion deficit for the 2026-27 fiscal year.
According to CBC Toronto, the budget introduces tax measures intended to trigger an "investment supercycle" and establishes the Canada Strong Fund, which will initially deploy $25 billion to acquire ownership stakes in businesses and major projects. Other key initiatives include increased GST rebates, funding for homelessness, and investments in Canadian arts and identity.
Ontario Minister of Finance Peter Bethlenfalvy welcomed the budget, stating it aligns with provincial goals to cut taxes and attract investment. Similarly, Giles Gherson, president of the Toronto Region Board of Trade, described the budget as the correct move to increase Canadian self-reliance during a trade war. The Ontario Chamber of Commerce also expressed approval of the measures designed to mobilize business investment.
However, Dan Kelly, president of the Canadian Federation of Independent Businesses, called the budget "mega disappointing" for small and medium enterprises. Reporting from CBC Toronto, Kelly noted a lack of tax deductions and a failure to provide support for the rising costs of tariffs. Kelly argued that the Canada Strong Fund is geared toward large corporations and suggested that the new Canada growth incentive—which allows entrepreneurs to avoid taxes on up to $15 million in capital gains if reinvested in a Canadian business—needs further work to be accessible to all businesses regardless of size.