Canada’s small businesses have been loud and clear about Ottawa’s fiscal mismanagement. For the past several years, the federal debt has ballooned but government has yet to break the deficit cycle.
A new report from the Canadian Federation of Independent Business (CFIB) is calling out Ottawa’s ongoing cycle of deficits and debt. Without serious course correction, today’s spending will become tomorrow’s burden, adding to the list of worries for small businesses across the country. The already uncertain current business landscape coupled with the lack of a plan from government to achieve a balanced budget adds to the uncertainty.
To shed light on the issue, CFIB’s report Breaking the Deficit Spending Cycle: Small Business Owners Calling for Fiscal Responsibility — Budget 2025 Update takes stock of Ottawa’s worrying fiscal plan, calling on government to prioritize paying down the national debt.
Increasing federal debt
Over the past decade, Ottawa has posted deficits in 12 of the last 13 budgets. During that same period, Canada’s debt has doubled.
This isn’t just abstract accounting; it has real consequences. Every dollar added to the national debt today gives less room for fiscal reprieve, and no buffer to respond when the next crisis hits.
What CFIB is calling Ottawa to do
CFIB’s new report lays out clear, practical steps Ottawa can take right now to restore fiscal responsibility:
- Implement a clear path to balancing the overall budget with specific indicators to measure progress.
- Commit to a fiscal anchor that reduces the deficits and debt, instead of just slowing their growth.
- Legislate spending limits on government outside of a global crisis.
- Take real steps to reduce the size and cost of the federal public service.
- Avoid introducing new or expanding social programs (e.g., dental care, pharmacare, etc.).
- Sell government assets (e.g., Crown corporations, land, buildings) where it makes sense.
What’s next?
CFIB continues to watch the federal government closely, standing ready to keep pushing for better fiscal responsibility.
The Spring Economic Statement was a missed opportunity for government to get its spending under control.
That is why CFIB won’t stop there. In the coming months, we will also release a broader report evaluating fiscal responsibility not only federally but across all provinces, holding every level of government accountable.
If you care about the future of Canada’s economy, adding your voice to this conversation matters.
CFIB exists to make sure small businesses across Canada have a voice in decisions like these. These are decisions that shape taxes, regulations, and the overall business climate.
At a time when financial choices will define the next generation, the voice of small business has never been more important.
When small businesses come together, governments listen.
If you believe in responsible spending, a stronger economy, and a fair deal for small businesses, join CFIB now. Together, we can make Canada a place where entrepreneurs can grow and prosper.
Add your voice for small businesses. Join CFIB today!
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