Business
Federal government should change course in upcoming budget to revitalize economy

From the Fraser Institute
By Jake Fuss and Grady Munro
From 2020 to 2030, Canada is projected to record the slowest rate of per-person GDP growth among 38 developed countries in the OECD. Simply put, Canada’s economy is stalling relative to its own past performance and other comparable countries around the world.
The Trudeau government will table its next budget on April 16, and it must address Canada’s stagnant economy. While the economy won’t turn around overnight, the government should recognize that its current policy approach isn’t working.
According to a recent Leger poll, nearly two-thirds of Canadians have a “poor” or “very poor” view of Canada’s economy. And it’s no wonder they feel this way. Canada is experiencing an economic growth crisis. From 2013 to 2022, inflation-adjusted per-person GDP (a broad measure of living standards) grew at its slowest pace since the Great Depression in the 1930s. Since the Trudeau government took office in 2015, per-person GDP (inflation-adjusted) in Canada has grown by only 1.9 per cent—nearly one-eighth the growth rate in the United States over that same period.
Moreover, from 2020 to 2030, Canada is projected to record the slowest rate of per-person GDP growth among 38 developed countries in the OECD. Simply put, Canada’s economy is stalling relative to its own past performance and other comparable countries around the world.
Why?
While there are many reasons for this slump in economic activity, consider the collapse of business investment in Canada. From 2014 to 2021, business investment per worker (excluding residential construction) fell from C$18,363 to C$14,687. In contrast, during that same period, business investment per worker in the United States grew from C$23,333 to C$26,751. In other words, Canada experienced the equivalent of a $43.7 billion decline in annual business investment while the U.S. enjoyed a C$585.1 billion increase (all figures adjusted for inflation).
Business investment is crucial for economic growth (and subsequent increased living standards) because it provides the resources needed to equip workers with tools and technology, for businesses to expand operations and become more productive, and for new businesses to enter the market. This in turn fuels innovation and productivity, which are key determinants of living standards.
Which brings us back to the Trudeau government. The collapse of business investment in Canada has been due in part to recent federal policy including Bill C-69, which introduced new and costly assessment criteria for energy projects, Bill C-48, which restricts tanker traffic off British Columbia’s north coast, and the forthcoming emissions cap on oil and gas, which will increase the cost of doing business in Canada.
Clearly, Ottawa has thrown up stiff regulatory barriers that deter investment in Canada’s energy and mining sectors. According to a 2023 survey of oil and gas executives, more than two-thirds of respondents viewed Canada’s regulatory environment as a deterrent to investment. And on the fiscal front, a string of deficits and massive debt accumulation create uncertainty around future tax increases, which gives investors another reason to take their money elsewhere.
Finally, the Trudeau government also believes that government should play an active role in the economy by handing out corporate welfare and subsidies to favoured industries and firms (i.e. electric vehicle battery industry). But when government tries to pick winners and losers in the market, it may actually inhibit rather than help the economy. Instead, the government should leave decisions in the free market to the investors, businessowners and entrepreneurs who have firsthand knowledge of their industries and businesses.
The Trudeau government has done little to promote economic growth and raise living standards for Canadians. While it will take time to turn things around, in its upcoming budget the government should finally change course and help revitalize the Canadian economy.
Authors:
2025 Federal Election
Alcohol tax and MP pay hike tomorrow (April 1)

The Canadian Taxpayers Federation is calling on all party leaders to stop a pair of bad policies that are scheduled to happen automatically on April 1: pay raises for members Parliament and another alcohol tax increase.
“Party leaders owe taxpayers answers to these two questions: Why do you think you deserve a pay raise and why should Canadians pay higher taxes on beer and wine?” said Franco Terrazzano, CTF Federal Director. “Politicians don’t deserve a raise while millions of Canadians are struggling.
“And the last thing Canadians need is another tax hike when they pour a cold one or uncork a bottle with that special someone.”
MPs give themselves pay raises each year on April 1, based on the average annual increase in union contracts with corporations with 500 or more employees.
The CTF estimates tomorrow’s pay raise will amount to an extra $6,200 for backbench MPs, $9,200 for ministers and $12,400 for the prime minister, based on contract data published by the federal government.
After tomorrow’s pay raise, backbench MPs will receive a $209,300 annual salary, according to CTF estimates. A minister will collect $309,100 and the prime minister will take home $418,600.
Meanwhile, the alcohol escalator automatically increases excise taxes on beer, wine and spirits every year on April 1, without a vote in Parliament. Alcohol taxes will increase by two per cent tomorrow, costing taxpayers about $40 million this year, according to Beer Canada estimates.
The alcohol escalator tax has cost taxpayers more than $900 million since it was imposed in 2017, according to Beer Canada estimates.
“Politicians are padding their pockets on the same day they’re raising beer taxes and that’s wrong,” Terrazzano said. “If party leaders want to prove they care about taxpayers, they should stop the MP pay raises.
“And if party leaders care about giving Canadian brewers, distillers and wineries a fighting chance against tariffs, it’s time to stop hitting them with alcohol tax hikes year after year.”
The CTF released Leger polling showing 79 per cent of Canadians oppose tomorrow’s MP pay raise.
2025 Federal Election
Poilievre To Create ‘Canada First’ National Energy Corridor

From Conservative Party Communications
Poilievre will create the ‘Canada First’ National Energy Corridor to rapidly approve & build the infrastructure we need to end our energy dependence on America so we can stand up to Trump from a position of strength.
Conservative Leader Pierre Poilievre announced today he will create a ‘Canada First’ National Energy Corridor to fast-track approvals for transmission lines, railways, pipelines, and other critical infrastructure across Canada in a pre-approved transport corridor entirely within Canada, transporting our resources within Canada and to the world while bypassing the United States. It will bring billions of dollars of new investment into Canada’s economy, create powerful paycheques for Canadian workers, and restore our economic independence.
“After the Lost Liberal decade, Canada is poorer, weaker, and more dependent on the United States than ever before,” said Poilievre. “My ‘Canada First National Energy Corridor’ will enable us to quickly build the infrastructure we need to strengthen our country so we can stand on our own two feet and stand up to the Americans.”
In the corridor, all levels of government will provide legally binding commitments to approve projects. This means investors will no longer face the endless regulatory limbo that has made Canadians poorer. First Nations will be involved from the outset, ensuring that economic benefits flow directly to them and that their approval is secured before any money is spent.
Between 2015 and 2020, Canada cancelled 16 major energy projects, resulting in a $176 billion hit to our economy. The Liberals killed the Energy East pipeline and passed Bill C-69, the “No-New-Pipelines” law, which makes it all but impossible to build the pipelines and energy infrastructure we need to strengthen the Canadian economy. And now, the PBO projects that the ‘Carney cap’ on Canadian energy will reduce oil and gas production by nearly 5%, slash GDP by $20.5 billion annually, and eliminate 54,400 full-time jobs by 2032. An average mine opening lead time is now nearly 18 years—23% longer than Australia and 38% longer than the US. As a result of the Lost Liberal Decade, Canada now ranks 23rd in the World Bank’s Ease of Doing Business Index for 2024, a seven-place drop since 2015.
“In 2024, Canada exported 98% of its crude oil to the United States. This leaves us too dependent on the Americans,” said Poilievre. “Our Canada First National Energy Corridor will get us out from under America’s thumb and enable us to build the infrastructure we need to sell our natural resources to new markets, bring home jobs and dollars, and make us sovereign and self-reliant to stand up to Trump from a position of strength.”
Mark Carney’s economic advice to Justin Trudeau made Canada weaker while he and his rich friends made out like bandits. While he advised Trudeau to cancel Canadian energy projects, his own company spent billions on pipelines in South America and the Middle East. And unlike our competitors Australia and America, which work with builders to get projects approved, Mark Carney and Steven Guilbeault’s radical “keep-it-in-the-ground” ideology has blocked development, killed jobs, and left Canada dependent on foreign imports.
“The choice is clear: a fourth Liberal term that will keep our resources in the ground and keep us weak and vulnerable to Trump’s threats, or a strong new Conservative government that will approve projects, build an economic fortress, bring jobs and dollars home, and put Canada First—For a Change.”
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