Fall Budget Reforms Face Scrutiny from Bloc, Watchdogs, and Provinces
Prime Minister Mark Carney and Finance Minister François-Philippe Champagne announced that the 2025 federal budget will include an automatic tax filing expansion for low-income Canadians and permanent funding for the national school food program. The plan aims to ensure millions receive unclaimed benefits while maintaining fiscal responsibility by balancing the operating budget by 2028-29.
Consultants said that Health Minister Marjorie Michel’s recent funding announcements largely stem from budgets introduced under former Prime Minister Justin Trudeau, noting they reflect continuity rather than new policy direction. Analysts like Bill Dempster and Kevin den Heijer expect Michel’s upcoming meetings and the November 4 budget to clarify her priorities, which may emphasize prevention, digital health, and reducing system costs.
An opinion piece by Sheila Copps argued that the Liberal government’s decision to permanently move the federal budget to the fall and separate capital from operational spending represents a major structural change in fiscal management. Copps contended that the shift could help Canadians better understand long-term investments, though critics like Conservative MP Pat Kelly and interim PBO Jason Jacques question its transparency and consistency with international standards.
Northwest Territories Finance Minister Caroline Wawzonek said the federal government’s move to a permanent fall budget cycle will help northern governments plan infrastructure projects more accurately and on time. Finance Minister François-Philippe Champagne confirmed the change, which experts such as Sahir Khan said could improve coordination and transparency between federal and territorial governments through more harmonized capital planning.
In Ontario, Toronto Mayor Olivia Chow and Budget Chair Shelley Carroll will host the city’s first in-person 2026 Budget consultation on October 14 at St. Lawrence Market North to hear residents’ priorities. The event marks the start of public engagement for the city’s 2026 Budget, with additional consultations and an online survey available in 12 languages.
Bloc Québécois Finance Critic Jean-Denis Garon outlined the party’s six key budget demands ahead of the federal budget, including an unconditional $11.6 billion increase in Canada Health Transfers over five years to strengthen Quebec’s health care system.
Garon criticized Prime Minister Mark Carney’s government for ignoring Quebec’s priorities, urging Ottawa to return funds owed to Quebec and allow the province to manage its own health, housing, and infrastructure investments.
Policy analysts Kevin Page, Adam Parwana, and Hao Tian Shen outlined that Finance Minister François-Philippe Champagne’s upcoming Budget 2025 will define how Carney’s government responds to Canada’s “hinge moment” of economic and social uncertainty.
They emphasized that the budget must deliver a responsible fiscal plan while addressing dissatisfaction with healthcare wait times, weak productivity, affordability pressures, and geopolitical challenges.
Despite a widening deficit, the authors argued that Canada still has fiscal room to invest in long-term growth and innovation, with Champagne stating that the Budget 2025 will deliver generational and transformative change aimed at building a stronger Canada.
The Montreal Economic Institute (IEDM) criticized Carney’s fiscal approach, calling the separation of operational and capital spending an “old accounting trick.” The institute warned that both types of spending increase debt and burden younger generations, urging the government to cut expenditures to truly balance the budget.
Trump’s Drug Price Push Sparks Industry Response and Risks for Canada
U.S. President Donald Trump announced substantial price cuts for medications used in in vitro fertilization (IVF), citing a 73% reduction per cycle, aimed at improving accessibility for families. EMD Serono, a leading fertility drug provider, supported this initiative, offering an 84% discount on its IVF therapies, such as Gonal-f, Ovidrel, and Cetrotide. The partnership is in exchange for tariff relief and commitments to U.S. manufacturing.
Additionally, Trump pledged to slash the cost of Ozempic with a proposal to reduce its price from approximately $1,000 a month to as low as $150 for patients. Novo Nordisk confirmed it is in talks with the administration, but declined to comment directly on the pricing target.
The “Most Favoured Nation” (MFN) policy has placed pressure on pharmaceutical companies to lower their prices or face potential sanctions. Experts argued against adopting foreign-style price controls, suggesting instead that reforms should target intermediaries like Pharmacy Benefit Managers (PBMs) and tackle hospital pricing practices.
In response to MFN, Genentech has launched its first direct-to-patient program to sell its flu treatment, Xofluza, at a significantly discounted rate. The program specifically targets uninsured or underinsured patients and is part of a wider industry move toward direct sales and discounts to improve patient access.
Meanwhile, recent analyses by the National Pharmaceutical Council highlighted potential long-term impacts of the Inflation Reduction Act’s Drug Pricing Negotiation Program on pharmaceutical innovation.
Meanwhile, a new study predicted that a proposed U.S. bilateral tariff on Canadian pharmaceutical exports could slash Canadian pharma exports by up to $3.7 billion USD annually and trigger potential drug shortages in the U.S. market. The most affected products are medications used for therapeutic or prophylactic purposes.
Ontario Expands Health Workforce Rules But Faces Backlash Over Residency Policy
The Ontario government will introduce legislation to expand “as of right” provisions, allowing 16 additional health professions to work in the province immediately while registering, as part of its plan to strengthen the workforce and reduce red tape. Health Minister Sylvia Jones and Labour Minister David Piccini said the initiative will accelerate credential recognition for doctors and nurses from other provinces.
The government will also work with the Colleges of Physicians and Surgeons and Nurses of Ontario to cut application fees, documentation, and processing times for interprovincial applicants.
But controversy quickly followed. Columnist Randall Denley argued that Premier Doug Ford’s decision to prioritize Ontario-born medical graduates for residency placements is fair and long overdue, correcting what he calls a “longstanding unfairness” toward Ontarians who studied abroad. He added that the move ensures taxpayer-funded training benefits residents likely to stay in the province and praises Ford’s expansion of medical school and residency positions to address Ontario’s doctor shortage.
The College of Family Physicians of Canada president Carrie Bernard and the Canadian Medical Association criticized Ontario’s new residency rule, calling it a barrier that will discourage immigrant doctors from practicing in the province. They described the policy as “baffling” and warned it could worsen the family doctor shortage by limiting access to qualified international physicians.
Physician advocacy groups, including the Ontario Medical Association, condemned the rule as discriminatory and politically motivated, saying it unfairly excludes qualified international doctors and violates human rights principles. Dr. David Barber and Dr. Therese Bichay both said the new requirement for international medical graduates to have completed two years of Ontario high school will drive many to seek opportunities in other provinces.
Newfoundland and Labrador Elects Progressive Conservative Government
In a closely watched provincial election, voters in Newfoundland and Labrador ended ten years of Liberal rule, giving the Progressive Conservatives a slim majority with 21 of 40 seats, while the Liberals won 15 and the NDP doubled to two seats.
Progressive Conservative Leader Tony Wakeham, a former healthcare bureaucrat, campaigned on voter concerns over healthcare, housing, and the cost of living.
Wakeham emphasized healthcare, crime, and fiscal issues in his campaign, pledging an independent review of the proposed Quebec energy deal and addressing the province’s rising debt.
Wakeham also criticized the proposed energy deal with Hydro-Québec and promised it would be reviewed by an independent third party (source 3). Hogan, the Liberal leader, had focused on the tentative energy deal with Hydro-Québec as the central issue of his campaign, but his party lost several seats.
With competing visions on how to deliver fiscal responsibility, accessible healthcare, and inclusive economic growth, the coming weeks will reveal what defines this next phase of leadership.
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