The House of Commons has launched its pre-budget consultation process ahead of the Carney Government’s first federal budget, expected this fall.
Pre-budget consultations are a critical opportunity for stakeholders to formally submit their proposals to Parliament and engage the new federal government on their priorities.
This budget will likely differ significantly from those of the previous Liberal government. Prime Minister Carney and Finance Minister Champagne have signaled that the upcoming budget will be just as focused on finding savings across government as it will be on introducing new spending initiatives.
To be effective, stakeholders must reframe their pre-budget proposals to reflect the Carney government’s current priorities and the broader economic context.
Key Considerations to Strengthen Your Pre-Budget Submission:
Align with Government Priorities
The Carney government’s mandate letters and Speech from the Throne have clearly outlined its top priorities:
- Growing the economy
- Strengthening global trading partnerships
- Reducing the cost of living and improving housing affordability
- Investing in national defence
- Attracting skilled workers and reducing immigration levels
- Controlling government spending
All proposals submitted to the federal government will be reviewed through the lens of how they contribute to these objectives.
Each federal department has been asked to identify their top three priorities for the fall budget and explain how they can be funded within existing departmental budgets. Any additional proposals must align with the government’s seven core priorities as outlined in the mandate letters.
In addition, the government has reaffirmed commitments to investments in infrastructure, healthcare, clean energy, agriculture, and Indigenous reconciliation. It also intends to maintain support for existing programs like dental care, child care, and health transfers to the provinces—so we can expect these areas to feature in the fall budget.
Key Questions to Guide Your Submission
When preparing your pre-budget ask, consider the following:
- Will this proposal help create or maintain jobs for Canadians?
- How does this strengthen the Canadian economy?
- Will it improve affordability or reduce the cost of living?
- Could it help expand Canada’s global trade relationships?
- Will it attract skilled workers or improve workforce productivity?
- Does it require new federal spending, or can it help reduce overall expenditures?
- What is the return on investment for government?
Austerity Measures and the Push for Savings
This week, Finance Minister Champagne sent letters to all Cabinet Ministers requesting proposals to reduce federal program spending. The government has set savings targets of:
- 7.5% in the next fiscal year
- 10% in 2027–28
- 15% in 2028–29
This is part of a government-wide expenditure review focused on reducing the cost of government operations and redirecting funds to higher-impact economic initiatives.
Difficult choices are ahead. Some programs and services will likely see funding cuts—particularly those that fall outside the federal government’s core mandate and may be better addressed by provinces, territories, or municipalities (e.g., healthcare, housing, social services, infrastructure, and transit).
In this fiscal environment, proposals that increase spending without clearly supporting the government’s key priorities are unlikely to be successful.
Need help framing your pre-budget ask? Reach out for strategic advice on how to effectively position your priorities with the Carney government and navigate the pre-budget consultation process.