The federal government is tightening spending, recalibrating pharmacare ambitions, and leaning into global healthcare innovation. From high-level cabinet retreats to grassroots policy stalls, this week offered a window into how Ottawa is balancing fiscal discipline with long-term national priorities. Here’s what you need to know.
Carney Sharpens Budget and the Appointment of Jason Jacques
At the Toronto cabinet retreat, Prime Minister Mark Carney said his October budget will combine austerity and investment, stressing discipline in federal spending while protecting health transfers and individual benefits. He emphasized defence spending to meet NATO’s 2% GDP target and tasked departments with finding 15% in savings by 2028–2029, while also noting that Canadians remain more concerned about inflation, housing, and cost of living than trade issues.
On X, Carney stated that the government’s fall agenda will focus on strengthening Canada’s economy by accelerating housing construction, fast-tracking major projects, and supporting workers and businesses affected by tariffs.
Meanwhile, Carney appointed Jason Jacques, the office’s director general of economic and fiscal analysis, as interim parliamentary budget officer (PBO) for six months following Yves Giroux’s term expiry. Jacques will provide independent fiscal analysis as the government prepares to table its fall budget, with a permanent appointment expected once the House resumes.
Bloc Québécois Finance critic Jean-Denis Garon criticized the decision, warning that bypassing opposition consultation undermines the independence and integrity of the PBO’s office. He raised concerns that with a deficit approaching $100 billion expected in the fall budget, the role’s impartiality is more crucial than ever.
Pharmacare Stalls as Federal Caution, Regional Resistance Grow
With Bill C-64 passed and initial rollout underway, Canada’s pharmacare is now facing a crosswind of political hesitation and provincial resistance.
Health Minister Marjorie Michel discussed in an exclusive interview with iPolitics the federal government’s approach to pharmacare agreements, that while additional pharmacare deals with provinces remain possible, they will be contingent on evaluating the effectiveness of current agreements. Since the passing of the pharmacare legislation last year, agreements have been made with Prince Edward Island, British Columbia, Manitoba, and Yukon, covering diabetes medication and contraceptives, which are seen as preliminary steps toward a national program.
Meanwhile, Northwest Territories (N.W.T.) Health Minister Lesa Semmler announced that the territory will not implement pharmacare in the near future, as most residents are already covered by existing health plans. The majority of the N.W.T. population is covered by the Non-Insured Health Benefits program, workplace health insurance, or the territory’s extended health benefits, which are equivalent to what pharmacare would provide.
Concerns are mounting from various groups as well. In a social media post by Innovative Medicines Canada, through an opinion piece by Glenn Thibeault of Diabetes Canada flagged that the single-payer system proposed might limit treatment options, especially for the over four million Canadians with diabetes. Thibeault also emphasized the importance of centring pharmacare policy around patient needs.
These developments have increased worries that the government might not fulfill its promises regarding the pharmacare plan, especially amidst the rising cost of living and upcoming federal tariff implications.
Canada’s Global Standing Through Women’s Health and Clinical Trial Innovation
Canada continued to make waves on the healthcare innovation front this week, both domestically and internationally.
Femtech Canada, in partnership with Innovation Factory, is launching a comprehensive national platform to address the lack of recognition for women’s health in the investment sector. The platform’s key feature, the Women’s Health Medical Pathway (wHealth MedPath) grant program, aids commercialization efforts and is bolstered by partners such as Sun Life and the National Research Council of Canada.
Meanwhile, the Ontario Women’s Health Scholars Awards are recognizing and funding research efforts of two Queen’s University researchers, Dr. Jennifer Wilkinson and PhD student Emily Ferguson, for their work focused on women’s skeletal muscle health. These initiatives are funded by the Ontario Ministry of Health and Long-Term Care and administered via the Council of Ontario Universities, providing substantial financial support to drive innovative research opportunities for women.
On the global stage, Industry leaders are set to gather at the 13th Annual Outsourcing in Clinical Trials Southern California conference in San Diego on September 23-24 to explore key themes, including artificial intelligence, partnerships, and innovative outsourcing models that are shaping the future of clinical trials.
This week’s developments show a government navigating a tightrope. The fall budget may promise discipline, but the pressure is on to deliver meaningful reform, especially on pharmacare, without leaving vulnerable Canadians behind.
Excited to know more about our Executive Daily Briefing? Book a free consultation today!
