‘Cautiously optimistic’: Calgary’s mayor, Chamber of Commerce see promise in federal budget

In Calgary, there was of course plenty of reaction to Tuesday's reveal of the Carney government’s first federal budget.

Mayor Jeromy Farkas says he doesn’t feel Prime Minister Mark Carney needs to be “sold on Calgary,” if the Tuesday-tabled federal budget is to be believed.

Calgary’s newest head of the table at council says he’s “cautiously optimistic” about what he heard out of Ottawa on Tuesday.

But he also says it’s ultimately what comes of the Liberals’ fiscal plan that will matter.

He says the budget “must translate into real, predictable and accessible funding.”

“(Tuesday’s) promises are encouraging, but Calgarians will judge this budget by actions on the ground—not by words on paper,” Farkas said.

With this budget, the Liberals are choosing to prioritize “generational investments” over slashing the deficit, which the government says would have come at the expense of social programs.

As a result, the federal deficit is projected to be $78.3 billion in 2025-26—a marked increase from the $42.2 billion forecast in last December’s fiscal update.

Overall, the budget commits to spending $280 billion over five years on capital investments in new infrastructure, productivity and competitiveness measures, defence and security and housing.

Speaking to media on Tuesday afternoon, Farkas noted three areas:

Infrastructure

“Ottawa’s commitment to a $51-billion Build Communities Strong Fund positions Calgary to benefit immediately if federal dollars flow quickly and predictably,” he said.

Housing

“The Build Canada Homes Initiative commits $25 billion over five years to build homes at scale,” he said.

“In our current affordable housing crisis, we need to build more homes in the right places that work for Calgarians.”

Safety

“We’re seeing some broad investments in law enforcement, recognizing that community safety is absolutely essential,” he said.

“But they also have to be matched with long-term prevention and mental-health supports, addressing crime at its source, and my council colleagues will be looking at this in the coming days as part of our budget adjustment process.”

Chamber chimes in

The Calgary Chamber of Commerce lauded the federal budget’s focus on “key economic priorities.”

Though the Chamber also raised some alarm over the growing deficit.

“Today’s budget tables several initiatives that match the severity of Canada’s economic challenges—and recognize the depth of our country’s strengths,” said Deborah Yedlin, Chamber president and CEO.

Yedlin notes the budget’s focus on several priorities:

• making Canada more tax competitive;
• increasing trade diversification and export capacity;
• focusing on labour and talent; and
• eliminating regulations that have been impeding investment in the natural resource sector.

“The investments tabled today come at a significant cost, with a deficit that far surpasses fiscal restraint and without a clear path to restoring fiscal responsibility,” Yedlin said.

“We look forward to working closely with government to address the many remaining regulatory burdens facing Canada’s industries to ensure the government’s goal to unlock $1 trillion in private sector investment can be realized—and can result in tax revenue that offsets the increased deficit.”

With files by Rachel Aiello