The Canadian government is introducing major changes to how it plans and presents federal finances, with the first fall budget expected in November 2025 under the new regime.

Under the revised structure, day-to-day operational spending will be clearly separated from long-term capital investments intended to promote growth. The government says this approach will promote transparency and enable quicker decision making.

Budget 2025 will inaugurate the shift to an autumn schedule for the federal budget. In future years, an economic and fiscal update will be released in the spring, while the main budget will be delivered before year’s end. The change intends to give departments, provinces, municipalities and industry more certainty ahead of the construction season, making it easier to start infrastructure projects sooner.

At the heart of the new system is a Capital Budgeting Framework that classifies expenditures and tax measures that contribute to productivity increases, infrastructure, housing, clean energy or other long-lasting assets. The government will use consistent criteria to determine which measures qualify as capital investment, distinguishing them from regular operating costs such as salaries, transfers and day-to-day administration.

Examples of what will count as capital investment include funding explicitly designated for infrastructure or asset creation, tax incentives designed to stimulate new private investment, support for research and development oriented toward commercialization, and measures to increase housing supply. The government will continue reporting on public accounts under existing accounting standards to maintain continuity and comparability.

Advocates of the change say it reflects a recognition that Canada must enhance its capacity to grow and compete in a global economy where countries are investing heavily in modernization. Critics warn that drawing the line between operating and capital spending can be politically sensitive and may invite pressure to reclassify spending for fiscal optics.

The government’s officials argue that the fall budget timing combined with the new framework will bring more predictability to stakeholders and improve parliamentary oversight by aligning budget decisions with the main estimates that guide departmental spending.

Budget 2025 is scheduled for November 4, and observers will be watching how effectively the new approach supports accelerated capital deployment while maintaining fiscal discipline.