MP Ruff – Liberal Federal Budget 2025 – The good, the very bad and the really ugly
December 19, 2025
19 December 2025
MP Ruff – Liberal Federal Budget 2025 – The good, the very bad and the really ugly
OWEN SOUND, ONTARIO — Bruce-Grey-Owen Sound MP Alex Ruff has released the following statement regarding the 2025 Federal Budget and Bill C-15 the Budget Implementation Act:
“The 2025 Liberal budget and subsequent Budget Implementation Act can be described as the good, the very bad and the really ugly.
“The good – the budget does contain some measures for farmers and finally a commitment to supporting our Canadian Armed Forces (CAF). I’m happy to see that the budget included changes in Agri-Stability from 80%-90% along with a max payout increased from $3 million to $6 million albeit for 2025 only. As well, the Liberal reversal to their increases in the capital gains inclusion rate is very welcome as these were all measures local Bruce-Grey farmers having been asking to see happen. With respect to support for the CAF, the pay raise for our military personnel along with investment in key military capabilities will see Canada finally get close to our 2% of GDP on defence spending.
“The very bad – the Liberal government’s failure to cut taxes like the industrial carbon tax, the plastic food tax, and the new fuel tax is directly impacting the cost of food and affordability for Canadians. On 26 November, Statistics Canada’s report showed realized net income for Canadian farmers collapsed by $3.3 billion in 2024, a staggering 26 per cent drop and the largest decline since 2018. Following a similar trend, farm cash receipts fell for the first time since 2010, down $1.4 billion. Simultaneously, total operating costs jumped another 2.5 per cent to a crippling $78.5 billion in one year with producers taking on more debt, driving up interest expenses with farm debt rising 14.1% in 2024 — the largest annual increase since 1981. When coupled with the latest Consumer Price Index (CPI) report released early this week which states clearly that ‘grocery price inflation is the highest since the end of 2023,’ with grocery prices 4.7% higher than November 2024. Even more concerning, food prices are up by 1.9% just compared to October - nearly exceeding the Bank of Canada’s annual food inflation target, and something StatsCan notes was ‘the largest month-over-month increase since January 2023.’
“I have heard from many stakeholders who say that the actions outlined in the budget are inadequate for solving Canada’s housing crisis. The federal government needs to do more to ensure we can increase our housing production by Canada’s homebuilders, so we have affordable homes for people across Bruce-Grey-Owen Sound. According to the Parliamentary Budget Officer (PBO), the Liberal Build Canada Homes (BCH) bureaucracy will add just 5,200 homes per year, instead of the promised 500,000 new homes. As well, according to the PBO ‘Affordable’ rents under BCH will be substantially higher than existing rents.
“The very bad continued – buried within the BIA, the Liberals are removing a clause in Canada Post legislation that provides reduced shipping rates for books and other materials mailed between libraries or to library users. According to public reporting, this special ‘library book rate’ currently covers about 90% of shipping for eligible libraries and materials and is needed to protect interlibrary loan programs and to keep rural libraries open. In addition, this change would have significant consequences for blind and print-disabled Canadians, as well as for service providers and educators across the country.
“The really ugly - finally, I am concerned that the Liberal government is continuing their legacy of high deficits with no intention of returning to balance. Their reckless spending with no repayment plan will leave behind a legacy of high debt resulting in the need for high taxes. PM Carney is adding $321.7 billion to the federal debt over the next five years, more than twice the $154.4 billion that former PM Trudeau would have added over the same period. What this means is that this budget adds $10 million to our debt, every hour. The federal debt is now $ 1.35 trillion and interest on debt will be $55.6 billion for 2025-26, that is more than the Canada Health Transfer ($54.7 billion), and GST revenue ($54.4 billion) and amounts to $3,360 per Canadian household. Real GDP has only grown by 1.1% in 2025, the second lowest in the G7. Despite 3 months of net inflows of securities investment, there has still been a net outflow of -$39.443 billion from the Canadian economy since March and a net outflow of -$61.930 billion since January.
“These facts coupled with over 70% of Bruce-Grey-Owen Sound constituents who reached out to me from all sides of the political spectrum telling me to vote against the budget made the decision to vote against it easy.”
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CONTACT:
Office of Alex Ruff, MSC, CD, MP
Bruce-Grey-Owen Sound
(519) 371-1059