Carney's Budget: What Entrepreneurs Need to Know
Prime Minister Carney's Budget 2025 brings tax breaks and productivity incentives for businesses, but soaring deficits raise economic concerns.
Carney Budget
By Elke Porter | WBN News Vancouver | November 25, 2025
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Prime Minister Mark Carney's first federal budget, tabled in November 2025, represents a significant shift in Canada's economic direction. With a projected deficit of $78 billion and ambitious spending plans, business owners and entrepreneurs working from home are asking critical questions about what this means for their future.
Benefits for Business Owners
Budget 2025 does offer targeted support for businesses. The centrepiece is the Productivity Super-Deduction, allowing companies to accelerate write-offs on capital investments in machinery, equipment, and digital tools including AI. For manufacturers, there's immediate 100% expensing for new processing buildings used before 2030. The Scientific Research and Experimental Development program's expenditure limit increased from $4.5 million to $6 million, benefiting innovative firms.
Small and medium-sized businesses gain from the Buy Canadian Policy, backed by $186 million in funding to help SMEs access federal procurement opportunities. The government also introduced a $5 billion Strategic Response Fund to help firms adapt to U.S. tariffs. Additionally, the lowest federal tax bracket drops to 14.5% in 2025 and 14% in 2026, putting more money in entrepreneurs' pockets.
Canada's Mounting Debt Challenge
The deficit concerns are legitimate. Budget 2025 nearly doubles last year's deficit, with projections showing $78.3 billion this year, dropping to $56.6 billion by 2030. Economic growth is expected to remain weak at just 1.1% in 2025 and 1.2% in 2026. The government is implementing $60 billion in spending cuts over five years, including reducing the public service by nearly 40,000 positions, yet still planning $141.4 billion in new spending.
The Conflict of Interest Question
Carney's corporate connections have sparked intense scrutiny. Before entering politics, he served as chairman of Brookfield Asset Management, a trillion-dollar investment firm with holdings across energy, infrastructure, and green technology sectors. His ethics filing reveals he must recuse himself from decisions involving over 100 corporate entities, including Brookfield and its portfolio companies.
While Prime Minister Mark Carney placed nearly all of his assets—excluding some cash and personal real estate—into a blind trust upon taking office and established conflict-of-interest screens administered by his chief of staff and the Privy Council Clerk, critics argue he should have sold his Brookfield holdings entirely to eliminate any perception of undue influence.
Opposition parties, particularly the Conservatives, point to potential conflicts in areas like renewable energy programs, infrastructure projects (such as prefabricated housing), and broader energy policy (including nuclear investments), where Brookfield has significant financial interests. Six conflict-of-interest screens have been implemented so far, though details remain confidential.
Conservative Leader Pierre Poilievre claims Carney's ethics disclosures reveal 574 separate stock holdings—many tied to U.S.-based firms and Brookfield options worth over US$6.8 million—that could create conflicts of interest, accusing the prime minister of misleading voters by initially describing his finances as limited to cash and real estate.
Thriving in Uncertain Times
For home-based entrepreneurs navigating this environment, strategic action is essential. Take advantage of the enhanced SR&ED credits and immediate expensing provisions before 2030. Position your business to benefit from Buy Canadian procurement opportunities. Focus on productivity investments that qualify for the super-deduction. Diversify your client base to reduce dependence on U.S. markets given ongoing tariff uncertainty.
The budget reflects a gamble: that massive infrastructure spending and tax incentives will spur enough economic growth to offset rising debt. For business owners, success will require agility, careful planning, and leveraging available incentives while preparing for continued economic headwinds. In times of uncertainty, those who adapt quickly and position strategically often find the greatest opportunities.
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