True Patriot Love - Canada’s 2025 Budget Explained： The 5 Pillars, Productivity & What Happens Next ｜ PART 2

00:00:00.000 Today on the True Patriot Love Media Network under the Pillar Economy, we're going to examine the five creative chapters that lay out the new initiatives in the 2025 federal budget and let you know our thoughts on if any of them has a shot at increasing our subpar productivity in Canada or increasing our GDP.

00:00:21.860 The federal government team worked really hard and did an excellent job writing this budget, given the mandate by the Prime Minister to switch the budget to a new accounting methodology, accrual accounting, similar to the UK.

00:00:34.880 But somewhere, it looks like the federal marketing agency took over and this document became more form than substance, with chapter captions like building a stronger Canadian economy, shifting from reliance to resilience, empowering Canadians and protecting Canadian sovereignty and security, creating a more efficient and effective government.

00:00:56.640 Sure, the federal marketing team gets an A for creative writing, but in the end, will it make a difference? Well, at this point, it has to. Canada is on the brink. Given our strained relationship with the USA, we cannot afford to put money into projects that do not increase our productivity or have a return via increase in GDP and other better measures.

00:01:19.040 Quite frankly, we will crash if this plan does not work out. It will spell catastrophe for the economy if we do not see growth. Our personal assets, including home values, will plummet. Unemployment will go higher than the 2027 projected 9 to 10 percent, and people will start to leave Canada en masse.

00:01:39.600 So, we have to pay attention now. Canadians have always been happy to go about their daily lives, not concerned about the federal government and spending, but we are all starting to get a hard lesson. Years of poor growth, lack of productivity have caught up to us, and we are still feeling it.

00:01:58.360 At the supermarket, real estate, businesses leaving, we are at that turning point in Canada, and these new and some old federal initiatives have to work or be abandoned forever.

00:02:09.720 We are a small country, so we can pivot, but we need to have contingency plans if these proposed plans do not work.

00:02:16.460 We are all shareholders of Canada, and we deserve a truthful answer analysis as we enter a very risky path with our country's future through record expenditures and investments.

00:02:28.660 So, stay tuned and let us know your thoughts.

00:02:31.440 Today, I'm here with Mike Wixson, and we're going to talk about the 2025 budget.

00:02:49.180 We started going through the profit and loss statement of the federal government, and today we're going to dig into those, how do I put it, those marketing terms that were in the budget, and I love them.

00:03:00.960 I think I've mentioned that before on other shows.

00:03:03.380 You know, the guys who write the budget, you know, I think they did a terrific job, and I'm not being sarcastic when I say that.

00:03:10.040 They did really have a tough task because we were converting what was a cash accounting system to an accrual accounting system, and there was a lot of rejigging in this budget.

00:03:20.920 This is probably one of the more complicated budgets, Mike, that we've had, and, you know, I think they did a terrific job.

00:03:26.300 But let me take you through some of the marketing spin that's in this.

00:03:29.160 So, they actually had a reconciliation in the budget, and they have five chapters on the programs that they're really focusing on.

00:03:38.340 So, when they talk about the investment in Canada and this being, you know, going to restructure the whole investment of the country, they're talking about building a stronger Canadian economy, shifting from reliance to resilience, empowering Canadians, protecting Canadian sovereignty and security, and creating a more efficient and effective government.

00:04:01.480 Paul, did they look up the pillars of TPL media by any chance?

00:04:04.900 They might have. I think they're following it. They must be watching the show.

00:04:07.840 It's so funny, yeah, but it seems like all of the major pillars of Canadian interest are kind of covered by those marketing titles.

00:04:17.660 Yeah, they did. It was kind of funny. And I'll call them for the show, not to confuse anyone. Every once in a while, I probably will refer to them as pillars.

00:04:24.660 But they're federal government pillars, and there's five of them, right? And I think it's a good idea today for us to go through them and to talk a little, Mike, about how they categorized these expenditures between operating and capital.

00:04:40.880 So how is it possible for us to distinguish that in the budget? Is there some method that makes sense for people to understand when they're looking at the budget, look at it this way?

00:04:55.280 There is. Actually, in each of the chapters, you know, this 400-plus page budget, there's five chapters that outline the pillars I just mentioned.

00:05:03.660 And at the end of each one is a reconciliation of the account, which is good. So it does show you in the end how much of this went to capital and how much went to operating.

00:05:15.260 The interesting part, which you're going to, you know, I don't want to ruin the show for everyone, but the interesting part is that you're going to see how little went into operating, how much got capitalized.

00:05:29.400 OK. So and, you know, we talked about it on the previous show when we broke down the federal government's profit and loss statement, kind of like you would do your own revenues and expenses for your own life.

00:05:42.540 So we broke it down that way to explain to everyone how the $78.3 billion deficit for this year, 2026, and $65 billion deficit for 2027 was broken down.

00:05:56.160 And then how on top of that, we have to spend a capital amount and then we have to finance it all.

00:06:02.560 So that's the last show we did.

00:06:04.140 The two-bucket system.

00:06:05.400 The two-bucket system.

00:06:06.320 It's a great, by the way, go back and watch that episode if you can, because it breaks it down for the average Canadian like myself.

00:06:15.760 Thanks, Paul.

00:06:16.460 I appreciate you put the effort in and your team on this.

00:06:19.500 Just to make it a little more simple, this budget is really difficult for Canadians, I think, to understand just because of that major change from cash budget to accrual system.

00:06:31.580 All right.

00:06:32.260 Take us through the pillars.

00:06:33.280 What are we spending the money on, Paul?

00:06:34.720 Well, okay.

00:06:35.700 So this is interesting.

00:06:37.000 You know, before budgets, there's always this release.

00:06:40.260 And the release is explaining to you some of the key projects, right?

00:06:46.400 And they always come out with it.

00:06:47.720 It's every government does it.

00:06:49.460 So Prime Minister Carney came up and he said, here are our national building projects and strategies.

00:06:57.020 You know, and this was a map.

00:06:59.820 You have it up on the screen there.

00:07:02.280 It basically talked about building a stronger Canadian economy through major projects.

00:07:11.660 And this was how they were going to accelerate nation building.

00:07:16.080 And the interesting part of it, when you take a look, and I broke down the budget only to the year 2027, the fiscal year.

00:07:27.000 Because beyond that, to you, it seems a little fantasy land.

00:07:30.380 And I, you know, personally, there's a couple of things there.

00:07:33.580 I would like to, first of all, see where they're at at the end of 2027, you know, because I think you can go to 2030.

00:07:41.120 But quite frankly, if the projects aren't turning and doing well by 2027, I think they're going to have to pivot.

00:07:47.480 Yeah, there has to be a pivot at that moment.

00:07:48.880 Yeah.

00:07:49.120 I think one of the key things that this government's really got to pay attention to, because if you are a risk taker, and in this case, this is a very risky budget, you know, it's high investment, high spend.

00:08:00.980 You have to really monitor what you're doing.

00:08:04.340 Like, you have to say, are these projects recouping anything for me, or are they just sunk costs?

00:08:10.520 Because if you've accrued them over so many years, they're affecting every single budget that they're not effectively returning on.

00:08:18.540 Yeah, if you're spending the money and they're not recouping, you're racking them off, and they're increasing your total deficit line.

00:08:24.140 So it's interesting to me, $3 billion is being budgeted, $2.7 allocated as capital expenditure in 2027.

00:08:32.880 And these projects are mainly mining, ports, and power, if I may be honest with you.

00:08:40.220 Well, so the interesting part is only $71 billion in 2027 is being spent on this.

00:08:47.300 71 million, sorry, 71 million.

00:08:49.820 So only, so these projects that we announced as major projects, we're really only spending $71 million on, and quite frankly, I don't know, you know, most of them are kind of either coming to completion, have been started, or, and there's, up until 2030, there's, I think I have it in my notes here, they're spending another $244 million.

00:09:18.300 So, so I don't understand, $71 million against 10 projects that are massive, this does not build a port, this does not open up a security corridor, this does not create the LNG phase two, what is $71 million actually probably going toward?

00:09:37.520 I think it's a lot of consulting, it's a lot of project development, a lot of maybe soft costs going into this number, but this definitely isn't a full charge on these projects, right?

00:09:48.260 No, it's impossible that it would be.

00:09:49.820 Some of these projects, like I said, have been completed in the past, I think they're just being thrown on the list.

00:09:54.060 But, you know, you know, the one I always laugh about is the high speed rail between Ontario and Quebec, you know, it always gets on the list, it never is going to happen.

00:10:02.840 It's never happening.

00:10:03.660 It never happened.

00:10:04.420 The other one that, the other thing that occurred to me is there's a lot of mining, there's a lot of, how to put this, there's a lot of remote project development here outside of the major city cores.

00:10:17.740 And it leads me to wonder, okay, how are we going to employ people in that, in those areas?

00:10:23.340 Does this really go to the bottom line for employment and, and, you know, then income tax revenues, if they're so far removed from, you know, the major centers?

00:10:35.600 Yeah.

00:10:36.440 Again, I just think a lot of them are, they're good, they're good projects that occurred a while ago.

00:10:42.720 I think you throw them on the list, you throw a bunch of money, and you can talk about them in the budget, but I, honestly, I don't think they're.

00:10:49.920 It's exactly what it looks like here.

00:10:51.340 All of these are, they all have names that we're familiar with.

00:10:54.880 Yes.

00:10:55.520 Yeah.

00:10:55.700 They've been marketed.

00:10:56.480 They've been branded.

00:10:57.220 I think, you know, the, again, the, the marketing company that put the budget together did an excellent job on getting us attached to the different branding for the initial initiative.

00:11:06.560 For sure.

00:11:06.840 Yeah.

00:11:07.000 So, the next thing that came up, which this is, you know, if you look at that $3 billion, they created a set of tax incentives.

00:11:17.600 So, and I thought they did a good job and, and they refer to this as supercharging growth.

00:11:24.440 So, and they, they allocated $3 billion in 2027.

00:11:29.020 Most of it was capitalized as we talked about it.

00:11:31.560 So, and they did a good job in doing that.

00:11:34.540 So, basically, you can write off your assets faster, you know, you can get a quicker deduction.

00:11:43.480 You can get immediate expense for manufacturing and building accelerated CCA for low carbon liquefied natural gas.

00:11:52.880 And, and basically, marginal effective tax rates by more than 2% are, have been increased.

00:12:02.260 So, so there's some tax benefits here.

00:12:04.720 Actually, this, this makes a lot of sense to me in developing business.

00:12:07.800 Yeah.

00:12:08.140 So, and it doesn't really cost you a lot.

00:12:10.000 Quite frankly, you can throw it on the books.

00:12:11.640 You know, it's kind of the opportunity cost of not getting taxed.

00:12:15.600 Right.

00:12:15.960 Americans probably do this really well.

00:12:19.360 Australians have been amazing at it.

00:12:21.000 Right.

00:12:21.240 That's been the premise for actually development and a lot of industries in Australia right now.

00:12:27.620 A lot of their, their, their industries have been charged from within.

00:12:32.240 Yes.

00:12:32.820 And, and have done very well.

00:12:34.380 I mean, we were seeing them take resource gigs that we could, resource deals that they have with the U.S.

00:12:41.760 We could have easily been taking those.

00:12:43.400 Yeah.

00:12:43.900 But we're not that far along in the, the development of this.

00:12:47.280 Yeah.

00:12:47.480 Our mining and LNG and that has been delayed.

00:12:49.860 Right.

00:12:50.140 So, you know, they've kind of hopped to the front of the parade and they have a prime minister who's aggressive at it.

00:12:55.300 And they've given tax rates to companies.

00:12:57.900 They stopped subsidizing companies.

00:13:00.580 One of the things that they did a while, years ago, which they had, they had to hit a little bit of a hiccup.

00:13:05.240 It was a bump, right?

00:13:06.300 The government said, you know, we're going to stop doing as much in subsidizing to companies coming to create employment here.

00:13:12.820 And by doing that, they've kind of created a whole internal economy that they don't rely on companies to come in.

00:13:19.520 And necessity, necessity filled that gap, I would assume.

00:13:22.820 Yeah.

00:13:23.080 Yeah.

00:13:23.580 And smaller entrepreneurs.

00:13:24.780 So, you know, if you go through, and the other one that pops to mind, Mike, when you look at this, is the scientific research and experimental development tax incentives.

00:13:34.040 Yeah, shred credits.

00:13:35.120 Shred credits, right? 0.93

00:13:36.060 So, you know, in this, we put a bunch of money into shred credits.

00:13:43.540 And I don't know, you know, mixed feelings on this, quite frankly.

00:13:50.080 Do I think it's a good idea?

00:13:53.580 Yes.

00:13:54.120 Do I think it will work?

00:13:55.820 I've seen shred credits used in some very, very nefarious ways, if I may be honest with you.

00:14:00.900 Yeah.

00:14:01.540 Yeah, me too.

00:14:02.380 That never really amounted to much.

00:14:04.060 No, I hate to say it, but it tend to be kind of wasted opportunities.

00:14:10.560 And quite frankly, I think they've thrown a little bit of money in here to try to get some stuff done.

00:14:14.860 Like $1.5 billion doesn't seem like a huge amount.

00:14:17.500 I mean, and it's all up against business.

00:14:20.660 Yeah.

00:14:22.160 So, these are existing business.

00:14:24.700 Really, it's another way to support independent business in Canada.

00:14:28.580 It is.

00:14:29.120 The challenge is it has to get into the right hands to bring people.

00:14:32.340 So, you know, we're going to talk about it in a minute, but they're going to spend a lot of money this year bringing international talent.

00:14:37.680 Yeah.

00:14:37.940 So, if you're going to give companies the shred credits, you should align that with your international talent.

00:14:44.200 So, to sort of move your industrial production ahead, right?

00:14:48.520 So, in other words, use these credits alongside getting the right talent to create earth-shattering or globally desired accessible product.

00:14:58.240 Yes.

00:14:59.260 You got it.

00:15:00.320 So, now, it's interesting because they had other things in here.

00:15:05.980 So, for example, they had $11 million in seizing full potential for AI.

00:15:12.120 I saw that.

00:15:12.900 They had protecting Canadian intellectual property, $54 million.

00:15:16.360 They had immigration levels plan for $29 million, which doesn't seem like a lot.

00:15:23.640 Improving foreign credential recognition.

00:15:26.700 They only wanted to spend $3 million.

00:15:28.220 So, you know, they're not truly that serious on that.

00:15:31.360 It's not a big initiative for them.

00:15:33.060 That's marketing money.

00:15:33.980 Yeah.

00:15:34.160 That's it.

00:15:34.520 Yeah.

00:15:34.660 That's it.

00:15:35.240 They don't really want to do that.

00:15:37.180 Recruiting international talent, they budgeted for 2027, $226 million.

00:15:45.600 Yeah.

00:15:46.560 Which is kind of an odd one, right?

00:15:48.820 Why would you spend $226 million to go abroad to find international talent?

00:15:55.360 I mean, are these guys using Marriott?

00:15:57.800 Because there's a cheaper way to do this, I think.

00:16:01.200 Well, it's interesting.

00:16:02.340 And then catalyzing investment in airports and ports, $3 million.

00:16:06.780 Okay.

00:16:07.180 This one caught my attention.

00:16:08.500 So, yeah.

00:16:09.240 I didn't understand how $3 million does anything at a port.

00:16:12.660 It barely puts a gate on the fence.

00:16:14.360 So, what is this meant to do?

00:16:17.580 Create more studies, more...

00:16:19.100 Yeah.

00:16:19.400 More studies.

00:16:20.320 Now, here's the interesting thing about operating expenses for capital expenses, right?

00:16:25.680 So, if you go to the next slide, and it basically...

00:16:27.740 It shows that...

00:16:30.120 And this is one they threw up in the budget.

00:16:32.360 They basically said that $1.3 billion on AI is being invested by the government over five years.

00:16:38.420 But then when you look at the 2027 budget, it basically has $11 million, right?

00:16:46.580 So, but that's the difference between...

00:16:48.340 Here's the funny thing.

00:16:49.380 It's a couple of things.

00:16:50.300 Number one, money gets mixed into the different areas of the budget, and then so much gets capitalized.

00:16:55.980 So, if you look at this pillar, which is building a stronger Canadian economy, they say, we're going to spend $3 billion on it.

00:17:05.900 We're going to capitalize out of that, 27.

00:17:08.700 So, in the operating expenses, you're going to see basically $300 million.

00:17:13.320 Okay.

00:17:13.940 Right?

00:17:14.200 So, quite frankly, there's a bunch of...

00:17:16.520 Quite the assumption, but okay.

00:17:17.980 There's a bunch of money sitting in that capital budget, which includes a bunch of things.

00:17:23.160 And they're saying in that capital budget mostly is the AI expenditure of 1x3, because the only money that could hit the operating budget is about $11 million plus some that's mixed into other small line items.

00:17:34.480 But for the most part, that's what they're doing.

00:17:37.900 And with airports, they're doing that too.

00:17:40.820 So, they do talk about it.

00:17:44.040 They talk about the projects and everything else.

00:17:47.040 But they don't really commit hard dollars until, I would imagine, 26, 27.

00:17:54.120 Yes.

00:17:54.880 Okay.

00:17:55.280 So, right now, there's $11 million of that $1.3 billion actually committed over the next year.

00:18:01.360 Well, and sometimes they go back.

00:18:02.920 So, it's interesting.

00:18:03.820 They've retroactively restated the budget back to 2025.

00:18:08.600 So, they went back and they started setting up accruals.

00:18:11.280 So, they went back and tried to do apples to apples.

00:18:14.200 So, they've actually went back and restated the budget, the books, let's say, not the budget, the books, back to go forward.

00:18:23.260 So, it all looks like the same budget.

00:18:25.500 Because you can't have a cash.

00:18:27.100 You couldn't have cash accounting and accrual accounting and try to compare the two.

00:18:30.580 It looked very wonky.

00:18:31.600 Right?

00:18:31.780 So, they've done that job, which, again, I take my hat off to the bureaucrats that worked on this.

00:18:36.380 It's a yeoman's task.

00:18:37.700 And I only imagine, for the short period of time they had, how much work they did, which really is commendable.

00:18:43.720 It kind of gives you an understanding now of, I mean, I complained a lot about this.

00:18:47.220 Where's the budget?

00:18:47.920 Where's the budget?

00:18:48.680 Where's the budget?

00:18:49.380 Well, now, I kind of understand what they were doing was a major overhaul of how we go about this.

00:18:55.520 And I have questions about that before we go today as well.

00:19:00.200 Planned investments in building in Canada.

00:19:03.440 So, trade and transport infrastructure is $5 billion.

00:19:07.980 I guess that's where we extend from the ports and we start to actually, the rubber starts to meet the road.

00:19:14.500 You know, the next amount on the planned investment building is $19 billion for indigenous communities and municipal infrastructure.

00:19:22.700 That, by the way, averages $10,500 per indigenous person in Canada, that budget.

00:19:30.360 Not that that's where the money's going, but there are infrastructure projects that they're doing here.

00:19:35.640 So, here's my question.

00:19:37.600 If you don't have the answer, of course, I don't know who would know this.

00:19:41.760 But we put $19 billion into this and these are indigenous projects.

00:19:47.780 Do those assets then hit the books for the federal government or do those belong to the indigenous peoples?

00:19:55.320 Who owns the asset that we're investing the $19 billion in saying that there's a $5 billion or $7 billion asset left behind?

00:20:03.460 Yeah, that's a good question.

00:20:04.780 You know, I don't really know the answer to that one, Mike.

00:20:07.520 But, you know, the question's an interesting question.

00:20:09.800 It's similar to, you know, recently there was that issue in B.C. with the homes that basically were built on First Nations land.

00:20:18.200 Yeah.

00:20:18.520 And quite frankly, they came out and said, listen, we own, you know, we owned a fractional part of those homes.

00:20:24.040 Yeah.

00:20:24.640 And so now these projects that the government's actually putting on their books that are indigenous or First Nations projects, do they then own the projects?

00:20:33.220 We'll come back to it, too, because...

00:20:34.700 I guess they do, because they're capitalizing them.

00:20:36.680 They're not, like, they're capitalizing them.

00:20:39.640 They're putting them as an asset on a balance sheet.

00:20:41.660 So if they're actually putting them on as an asset...

00:20:43.820 See, I'm not an accountant, but even I saw...

00:20:46.020 Yeah.

00:20:46.280 If they're using assets to amortize this and keep the deficit down, this is $19 billion that may not be ours.

00:20:58.280 Yeah.

00:20:58.820 That's a good question, Mike.

00:20:59.980 I'd love to, you know, probably next show.

00:21:02.020 I'd be curious to know.

00:21:02.160 But, you know, it's interesting.

00:21:04.440 So you look at this $115 billion.

00:21:07.640 Now, most of that is capital, right?

00:21:10.280 So those are in...

00:21:11.240 There's three types of capital that the government has outlined in this budget.

00:21:15.980 There's baseline capital.

00:21:17.600 Okay.

00:21:17.840 There's...

00:21:19.040 They call it fees 2024, which is basically the estimates.

00:21:24.960 So if they changed a policy after 2024 up to 2025, they account for it.

00:21:32.180 And then there's in-budget 2025 capital.

00:21:36.480 So there's three holes, let's call it, of capital.

00:21:40.780 And quite frankly, they add up.

00:21:44.060 They're significant, as we've talked about.

00:21:46.200 And they include things like this generational infrastructure.

00:21:49.980 So if you look at the operating budget, which we're talking about reconciling for the $65 billion deficit for 2027,

00:22:02.440 the interesting part is that that $300 million, sorry, the $3 billion they're going to spend on it, most of it is capitalized.

00:22:14.360 It does include 4.75 in generational infrastructure, less funds previously provisioned.

00:22:24.380 So when they do the accounting adjustments, it works out to about $2.2 billion in infrastructure, generational infrastructure.

00:22:34.140 Moving forward.

00:22:35.280 Well, that's only moved over into the capital budget, right?

00:22:41.600 So it's moved over.

00:22:42.660 So what's left in that $65 billion deficit, you know, revenues, less operating expenses, is only a small portion of this amount of the $115 billion.

00:22:54.820 Oh, I see.

00:22:55.720 Okay.

00:22:56.020 That's for the year.

00:22:56.560 So there's only a small amount.

00:22:57.820 So it gets moved over, capitalized.

00:23:00.180 And so that's why you're seeing such an aggressive capital budget and a sustaining large deficit, right?

00:23:08.560 Because as we talked about in previous shows, the deficits are just kind of the standing expenses, right?

00:23:14.560 You know, what we pay the seniors.

00:23:16.260 Anything we do on top of that.

00:23:18.060 This is, this is, and that's what's been ramped up.

00:23:20.640 Is capital investment.

00:23:22.600 Right.

00:23:22.960 Which is truthfully, and this is where, you know, it's odd that in some of these discussions that have taken place since the budget was dropped,

00:23:31.100 the opposition should be spending all their time on these capital spends.

00:23:35.460 You know, they can go back and they can spend time on the operating budgets.

00:23:39.240 They have to at some point because it's just getting larger.

00:23:42.720 It's upside down.

00:23:43.520 So they have to slowly kind of reduce it to get, to get us back into a reasonable operating deficit.

00:23:50.100 But, you know, it's making sure these capital projects, you know, move forward and are successful.

00:23:55.740 Paul, I want to ask you something in, so chapter two.

00:24:00.240 Yep.

00:24:01.260 This caught my attention.

00:24:02.480 Protecting Canada's strategic industry is only 20 pages of the budget, which is a major portion of this presentation.

00:24:10.820 Funny enough, I saw your notes.

00:24:15.220 Lots of stats on demographics in other countries.

00:24:17.960 But in 2027, we'll spend $4.7 billion on capital expenditures.

00:24:23.780 Well, four point, so interesting.

00:24:26.540 So 4.7 on 27, and we're going to capitalize, we're going to capitalize 1.4.

00:24:34.500 So it is going to be, this is money we're going to spend.

00:24:37.240 This is money that's going to be hard expenses that come out, operating expenses that are coming out in 27.

00:24:42.680 But this is, I think, Mike, this is what scares me a little bit, again, where we have to spend some time.

00:24:48.840 You know, we've just been through this in Ontario with this kind of a scandal on, you know, training and everything else.

00:24:55.560 Retooling humans.

00:24:56.400 It's a huge amount of money on that, right?

00:24:58.360 So, you know, we're talking about retraining, retooling companies, diversifying economies, like all the words we're using in this, you know, this is kind of a concept right now.

00:25:12.320 So this is like concept money that we've set aside.

00:25:15.660 Also, not for nothing, but on our team, Shara pointed out just before the show, if we don't have people here to employ that are, what training programs,

00:25:25.800 if we don't have skilled and qualified people to come into these programs, even to retrain them and stuff like that, where is this money actually going?

00:25:33.740 So it's almost like the cart before the horse on this one.

00:25:36.840 Well, and it's, you know, it is a little bit, but, you know, this is where we're challenged at Lillian Canada right now.

00:25:44.620 And we can't make the mistake of not doing the right thing to make this work.

00:25:49.860 And basically, we have to figure out our key industries that we want to be involved in.

00:25:55.100 So what is going to make us the most money, increase our GDP, then we have to find people, and then we have to train them properly to do it.

00:26:04.480 So, you know, with Jimmy Lang, you know, I did this show, and it's about building submarines.

00:26:10.600 Yeah.

00:26:10.960 So we got a lot of views on it, a lot of comments, and everyone was an expert.

00:26:14.820 I was surprised.

00:26:15.580 There's a lot of really smart comments, which was great.

00:26:17.460 People are very smart.

00:26:18.420 By the way, keep your comments coming.

00:26:20.140 Yeah.

00:26:20.500 They don't hurt our feelings.

00:26:21.500 We learn.

00:26:22.080 No, no.

00:26:22.460 Well, but the one thing I think that they weren't paying attention to, or I think we missed a little bit from the conversation, was how do we take Canadians and train them to be in that industry?

00:26:33.240 So as we're going and we're going to spend billions of dollars on defense and submarines and aircraft, you know, how do we shift into that industry?

00:26:44.240 You know, use our ports to build submarines and things like that, but, you know, it's, and again, I use China, just I know the economy is different, the governmental system, I get all that.

00:26:56.480 But one of the things the Chinese do really well is they have a definite strategic vision of how they create key industries within their country.

00:27:06.720 And they do things with, with that in mind every time.

00:27:11.700 So if they build a cruise leisure ship, you know, for like, like we would in Carnival Cruise Line to go on a cruise, they also make it functional.

00:27:21.400 So at the end of the day, they can take military vehicles and load them up and ship them to another port.

00:27:26.960 Yeah.

00:27:27.120 And they do, and they do this in many, many sectors and many industries in China that have a dual purpose.

00:27:33.560 Yeah.

00:27:33.820 You know, capital protection or capital asset or whatever the case is, but also is a corporation making a product for consumers.

00:27:43.200 Yeah.

00:27:43.620 Yeah.

00:27:43.820 They can flip on a dime and become operational for the purpose of the country.

00:27:48.740 Yeah.

00:27:49.100 Their whole, their whole auto industry, quite frankly, is geared up for their national defense.

00:27:53.940 So when they want to switch an auto plant over, they can switch it over and go to weapon production.

00:28:00.660 So this one does concern me a bit because it feels like maybe I, I don't know where it shows up in the budget, but I think it's in 2027.

00:28:08.840 So we almost have to be up and operating in some industries that require us to have people and train them.

00:28:17.640 Well, you know, 2027, we've actually started it.

00:28:20.520 So in, in 20, this year ending, we're going to spend 3 billion on these initiatives.

00:28:28.160 Okay.

00:28:28.580 And we're going to only capitalize, uh, 500 million of it.

00:28:31.800 So we're, the money is already flowing, the retraining, everything, the programs are already in play.

00:28:37.100 Um, which, which, you know, again, it's monitoring that success to make sure you're getting the people trained in the right industries to recreate those industries.

00:28:45.300 So, you know, uh, I think it becomes, it, it, and this is something, I don't know if, uh, government's really focused on at the end of this, it's going to be hard for them to say, well, I don't have any welders.

00:28:56.880 I don't have any tech people.

00:28:58.260 I don't have any, you spend a lot of money because we're talking, you know, if we look at this, quite frankly, um, we're, we're talking, uh, crepes.

00:29:09.740 It's, it's, it's, it's, it's roughly around, uh, 50 billion dollars up until 20 or sorry.

00:29:18.460 No, not that much, $16 billion up until, uh, 2030 and we're going to capitalize 8 billion of it.

00:29:28.260 Um, so that means 8 billion operating expenses and 8 billion.

00:29:31.920 So 8 billion in training is a lot of money.

00:29:36.160 And what are we recouping on that up to 30?

00:29:39.200 It's, it's not significant, right?

00:29:41.320 We're not even close to getting to recouping that spend by the end of this forecast of 2030.

00:29:49.520 Well, yeah, no, you were not, but you have to get it back in production.

00:29:53.680 Yeah, that's fair.

00:29:54.320 So you, you, if you spend $16 billion, you better make sure you get the right people in the right industries coming out of it.

00:30:00.340 This is maybe where this kind of budget makes sense because you're amortizing over a long period of time, which major industries do when they're opening a plant or they're creating a new facility.

00:30:10.220 It does, it does.

00:30:11.840 It just, it, the scary part is, again, making sure you're doing the right thing, right?

00:30:16.580 And if they don't do it, then we're, we're left in, in quite a, quite a debt.

00:30:21.000 Yes.

00:30:21.600 Well, and that's, you know, so if you look at it, it consists of 182 million in 2027, uh, that's going into agricultural, agriculture, fisheries, seafood and forestry.

00:30:34.360 And then we have this big lump, which is, uh, protecting workers and transforming Canadian strategic industry.

00:30:41.500 So that's kind of the, what I call the, the bubble, you know, that we don't really know what we're doing.

00:30:46.660 We don't understand what that really means.

00:30:48.080 Yeah.

00:30:48.140 No, we haven't fully developed that.

00:30:49.700 And we also protecting workers and transforming, uh, we have more money from a financing perspective, another 1.2 billion.

00:30:57.460 So financing means that you're going to borrow from the government up to $1.2 billion as industries to retool, re-strategize and, and retrain.

00:31:06.220 Yeah.

00:31:06.660 Okay.

00:31:06.900 So it's a big, it, it, it really is, it is a big, and that, that's a scary thing, right?

00:31:12.900 And, um, you know, we also have, which before we leave this one, I just wanted to comment on, we have a growing Canada's trade with the world.

00:31:22.560 So we also are spending in 2027, $690 million on a strategic new trade strategy, which is again, a concept.

00:31:35.640 It's, I was going to say, it sounds very conceptual.

00:31:37.900 I mean, it needs a detailed plan and that's a lot of money to spend in this year without a plan, unless there's already one in play that we don't know about, or it's already been capitalized previously.

00:31:49.220 Yeah.

00:31:49.720 This is like the Arctic infrastructure fund.

00:31:52.480 So to build, and this is for the first diversification of ports, new port doors.

00:31:57.900 Yeah.

00:31:58.040 So this is money that is spent.

00:32:00.120 And this is kind of the, uh, Prime Minister Carney's idea of doubling trade with, uh, non-US partners.

00:32:07.480 So in order to get, you know, in order to get things over to the, those countries.

00:32:11.660 We need new, new routes.

00:32:12.880 We need new routes.

00:32:13.660 Right.

00:32:13.980 And so we're kind of at that point where we used to just throw it on a truck or rail, ship it down to the US.

00:32:18.860 Now it's tougher, right?

00:32:20.540 We, you know, we're, we're landlocked, you know, by water.

00:32:23.600 So now it's trying to find a way to get, to get that happen.

00:32:26.520 And, and that's a strategy that has to rapidly be developed.

00:32:31.960 It's got to be deployed and it's got to be, uh, figured out with all the side, uh, you know, and, and main deals that are happening with the other countries.

00:32:42.040 As he's traveling around all those trips he's doing, he's trying to figure out what they need and quite frankly, how to get it there.

00:32:48.480 Well, it was interesting because, uh, I had a moment with a formal, a former liberal MP last week and, uh, I said, well, here's Carney flying all over the world doing photo ops.

00:32:59.880 And, you know, I got corrected pretty quickly by her.

00:33:03.080 She said, actually, what he's doing is he's taking businesses and trying to activate trade deals that we have that nobody's using trade arrangements with countries where we don't have trade at the moment.

00:33:14.720 Right.

00:33:15.040 And that was his mission out there at that moment.

00:33:18.820 I saw it a different way, to be honest with you.

00:33:20.980 I saw him flying around first class in the best plane on earth, uh, next to the presidents.

00:33:25.940 But it does make sense that you've got to get out there.

00:33:29.580 And if we're going to do business in other parts of the world that are not the U S we actually have to take our businesses to those countries.

00:33:37.240 We have to host these arrangements to make it happen.

00:33:41.260 Yeah.

00:33:41.640 Boy, I wish you would have known that, you know, cause that would have been, I think that would have been a great community.

00:33:45.040 Communication strategy, you know, this is the worst part about all of this.

00:33:48.100 Yeah.

00:33:48.480 This got, the budget got communicated to us in, uh, big bolsterous ways.

00:33:54.540 And, and, uh, it was very noisy leading into this budget that really would have been better explaining to us.

00:34:00.820 We're going to go about it a different way, Canada.

00:34:02.700 And I'm not just traveling the world, taking photos with world leaders.

00:34:06.900 I'm actually doing business out here, but they have not communicated really since Carney got into office.

00:34:14.400 They have not really communicated things that well with Canadians.

00:34:17.980 I think, you know, this is an example of that.

00:34:20.080 Yeah.

00:34:20.560 You know, you know, I know not a fan, but quite frankly, one of the things that, uh, I think Trump does really well, right?

00:34:28.540 He brings industry leaders in, he puts them at the table.

00:34:31.800 He does press conferences.

00:34:33.220 He announces deals.

00:34:34.960 Hey, you know, when he goes somewhere, he's got a group of entourage with them cutting.

00:34:38.680 Like it's very deal oriented.

00:34:40.780 Right.

00:34:41.040 And I think that quite frankly, gives people a little bit of confidence or a little more confidence that things are happening and investment is starting to take place.

00:34:48.220 And I, that's a page.

00:34:49.480 I don't know how, you know, we get there, but I think we need to think about.

00:34:53.460 Yeah, I would agree.

00:34:54.540 Yeah, for sure.

00:34:55.600 So, uh, chapter three, so empowering Canadians, right?

00:35:00.440 So this is one, uh, primarily the first part of it deals with, uh, uh, building homes.

00:35:07.220 So this is, uh, Anna Bayou, you know, this is what we heard about.

00:35:11.040 A few weeks ago, um, where we're setting up this new, uh, supercharge home building across the country.

00:35:20.160 Um, and it's a big number.

00:35:22.880 It's a big number actually, uh, in the 2027 budget, it's actually 10.2 billion and only 2.5 billion of it's capitalized.

00:35:32.780 So this is money.

00:35:33.780 They want to move out as an operating.

00:35:35.660 They want to move this cash into market.

00:35:37.680 As soon as they can, they want to get, uh,

00:35:40.460 you know, home building happening.

00:35:43.300 They want to tackle affordability.

00:35:45.220 Now that 10.2 billion is made up of a big nut.

00:35:48.900 Now you might think, okay, that's a lot of homes.

00:35:51.920 It's it, it is, but quite frankly, a big portion of that 10.2 billion is just a cash payment to Ontarians, which we're going to get to in a minute.

00:35:59.680 So it's just a lump sum.

00:36:00.900 We're all going to get a check and it's to kind of tie us over, I guess, in times of tough, uh, tough times.

00:36:09.580 So, okay.

00:36:10.060 And, and basically it also is an expender expenditure on protecting Canadian culture values and identity.

00:36:17.280 So, so this one's just not on home building.

00:36:20.140 It actually has a payment to us as in general and then going forward.

00:36:24.580 So, you know, we all heard about this, you know, we want to, uh, build more homes, partner with industries and indigenous communities to build affordable housing.

00:36:35.240 Um, we wanted to figure out a way to harness innovative housing strategies.

00:36:39.100 So this is, uh, you know, I think, uh, the prime minister met with modular home builders a couple of times.

00:36:45.780 We've seen a couple of photo ops, uh, haven't gone that well to tell you the truth, but no.

00:36:50.820 Yeah.

00:36:51.060 And this actually feels a lot to me, like, uh, incentives that are made to get people buying new homes as, as opposed to buying a resold home.

00:37:01.220 There's not a lot of incentive, I think, built into this as we, as we go forward, we're going to see.

00:37:05.960 But what I do see is, uh, great benefit to developers building brand new homes, uh, and marketing.

00:37:14.280 So this is going to give people a cut, a break on buying a developer new home for the first time.

00:37:23.040 Yes.

00:37:23.240 It's going to give the developers incentives and match monies.

00:37:27.920 It's not doing that for the average person selling a house and trying to move, move out, you know, move on to another property.

00:37:34.620 It, it's competition really, right?

00:37:36.720 So it's creating forces to move people into new homes and developed homes, which is part, that's fine.

00:37:42.820 But we have established communities and neighborhoods that have beautiful homes and beautiful infrastructure already.

00:37:48.900 Right.

00:37:49.200 Well that, you know, it's a whole other Pandora's box, but, uh, you know, we did a, uh, show on it the other day.

00:37:55.860 It's going to be coming on to the network, but you know, you have 30,000 condos that are vacant or struggling right now.

00:38:02.840 You have, uh, low home starts, you have, uh, you know, tough time.

00:38:07.940 People are selling a home is near to impossible right now, an existing home.

00:38:12.440 Um, so if you, on top of that, start to, you know, go out and build modular homes like crazy throughout, you're going to add another pressure onto all those markets.

00:38:21.960 You're going to be competing, right?

00:38:23.280 It seems like competition.

00:38:24.420 Yeah.

00:38:24.740 So it's a, that, this is a, a very complicated formula.

00:38:27.960 What happens with competition usually, Paul?

00:38:30.300 Oh, it's, it's good for the investor because it drives the price down.

00:38:33.540 The equity holder, it doesn't help.

00:38:35.920 Exactly.

00:38:36.460 Right.

00:38:36.720 The, the guy, the person that's, you know, uh, paid their mortgage, paid their house off, was hoping it for their retirement savings.

00:38:43.860 Quite frankly, they take the hit is the market value goes down, down, down, down.

00:38:48.180 And it usually comes back.

00:38:49.240 But if you're not in that, if you're the guy selling your house at that wrong moment, and this seems like a dip that could take a while to come back, uh, back from, I mean, that is if they actually deliver on this.

00:39:00.780 Well, it's interesting.

00:39:01.400 It's just, you know, I was watching a stock market thing the other day.

00:39:04.840 And, you know, if you see a 20 to 30% hit in home prices, it'll, it'll take at a 2% growth rate on home, uh, prices going back up.

00:39:14.960 It'll basically take you almost 30 or 40 years to get back to where you were.

00:39:19.080 So most people will never see the daylight of that, that dip.

00:39:22.780 So, you know, it's not like the, it, you know, the, I think we're kind of coming, we're all sort of getting, uh, wising up a little realizing the real estate booms of old are probably they're gone.

00:39:34.240 Yeah.

00:39:34.740 Yeah.

00:39:34.960 So unless there's something, unless, unless this budget, here's the thing, if this budget hits and productivity just skyrockets and we become a nation that's booming again, we're going to see housing prices go up again.

00:39:49.240 If we don't, we're not going to see housing prices go up.

00:39:52.040 Honestly, this budget does seem aimed at that, uh, if I was to be truthful.

00:39:57.100 So supercharging home building across the country, $1.8 billion.

00:40:00.340 The remainder of that money comes out in the form of removing the GST for the first time home buyers, uh, which is something that's in effect right now.

00:40:08.920 But, um, this extends itself even further with new development, new, yes, new homes.

00:40:15.220 Yeah.

00:40:15.620 It's not the person with the existing home really doesn't, it doesn't come into play.

00:40:19.960 I'm about to get canceled, Paul.

00:40:21.860 No, no.

00:40:22.620 So, so strengthening first nations infrastructure, financing and access to clean water, right?

00:40:30.900 The better part of a billion dollars.

00:40:32.280 Is there some point at which we will provide our indigenous people, our first nations people, clean water?

00:40:40.620 How many years have you seen us putting money toward cleaning the water?

00:40:44.980 We have the most fresh water of any place on earth, but for some reason we have to spend a billion dollars in every budget to try and get clean water to our indigenous people.

00:40:57.120 What is going on?

00:40:58.120 Yeah.

00:40:59.120 Well, I'm hoping, so here's, you know, this has been, you know, you know, my theory on, uh, dealing with, uh, you know, problem solving, I'm hoping that this brain trust that we're going to, uh, immigrate, we're going to go out and recruit, bring to Canada.

00:41:14.320 Uh, there's someone there who actually can tackle this because at some point we should be able to, like, you know, we have rockets going up, uh, all the time.

00:41:22.240 We have Elon Musk has a bulletproof car that, you know, can go weigh 7,000 pounds and goes faster than a Porsche 911, but we can't figure out a way to filtrate water.

00:41:33.100 We figured out how to get a pipeline across their lands, but not get them clean water.

00:41:37.160 Yeah. 0.88

00:41:37.560 It's, it's just ridiculous.

00:41:38.560 And I, quite frankly, it's some, it's time to actually move on and get this resolved, right?

00:41:42.880 Either, either it's not been resolved because it's unsurmountable at this point or something really strange is going on.

00:41:49.720 We need to have a look.

00:41:50.580 Yeah.

00:41:50.920 I think it, it is solvable.

00:41:52.680 And then I mentioned at the beginning, so a big portion of empowering Canadians is quite frankly, a payment in 2027 of $420 per person.

00:42:06.220 So $840 a year for a couple.

00:42:09.020 Um, it's just basically tax relief, right?

00:42:12.900 So you're going to get a little bit of money in the mail.

00:42:15.520 You know, I guess it's good.

00:42:17.140 We, we seem to have this, you know, we, it's interesting.

00:42:19.780 We have it slated every year till 2030.

00:42:24.900 So we have five to $6 billion a year, almost 6 billion.

00:42:29.520 It grows to, it gets indexed.

00:42:31.080 It does grow every year.

00:42:32.600 So we, we've indexed it saying every year, we're just going to give people someone, they're really unhappy.

00:42:37.060 We're going to write them a check.

00:42:39.640 And I, I think we tried this in, you know, we've tried this a few times recently coming out of COVID.

00:42:45.060 Oh, the carbon tax, uh, check that I get for 78, 78.

00:42:49.160 Yeah.

00:42:49.480 We tried that.

00:42:50.220 And then we, we, we tried, uh, you know, Trudeau tried it a couple of times just to say, you know, here's the money.

00:42:57.860 You're in tough times.

00:42:59.680 It doesn't have any economic benefit.

00:43:01.900 So quite frankly, it really didn't have any.

00:43:05.320 So I'm not sure we put a lot of money in.

00:43:08.200 Well, I'm sorry, but $420 means nothing, but when you could spend that at the grocery store easily in two weeks.

00:43:16.180 Well, the funny, and the funny thing is great.

00:43:17.640 Frankly, empowering Canadians is this is the pillar it's under and basically we're subsidizing them.

00:43:24.320 But I don't know if it makes it, it's inconsistent.

00:43:26.460 So, well, yeah, I mean, all it is not great marketing on that front, right?

00:43:31.000 No.

00:43:31.600 No.

00:43:32.080 Okay.

00:43:32.340 So anyway, I get it.

00:43:34.560 But at the same time, $800 a year is not an enormous savings to anybody.

00:43:40.280 And it, I don't think Canadians buy it, to be honest with you.

00:43:43.880 We know it's coming out of our taxes.

00:43:46.460 Yeah.

00:43:47.100 Yeah.

00:43:47.320 Just here's some money, you know, here's some of your money back.

00:43:50.000 Here's some of your money back.

00:43:51.020 And then we spread it across.

00:43:52.160 I guess it is kind of a, um, it goes to everyone regardless.

00:43:57.560 Yeah.

00:43:58.380 So quite frankly, it's just, you know, it's the equalizer.

00:44:00.860 Now they're saying it's a middle, middle-class tax cut.

00:44:03.760 So it does cut some people off, you know, at a higher income.

00:44:06.720 But yeah.

00:44:07.200 What?

00:44:07.680 114,000, I think 115,000 you're cut off.

00:44:11.100 Yeah.

00:44:11.500 But for the most part, you know, we, we talked about it earlier.

00:44:14.660 The, you know, the Canadian sort of, uh, uh, scatter diagram for income is fairly consistent.

00:44:21.520 So, you know, we are a country where a lot of people make a very mean level of income.

00:44:26.640 So a very, everyone's around the average.

00:44:29.220 So for the majority, it's very consistent, right?

00:44:31.740 They also committed, uh, 800 million in 2027 to help youth find and keep jobs, which was

00:44:36.700 a major news story leading into the summer.

00:44:39.880 Yeah.

00:44:40.320 There was no jobs for anybody.

00:44:41.560 So I can see some make work projects going on there that might benefit, uh, students.

00:44:46.040 Yeah.

00:44:47.000 Well, and quite frankly, again, it's these investments we're making that should be creating

00:44:51.460 jobs that students can jump into and we should be using them.

00:44:55.100 If we're looking for brain trust to recruit people, let's start training, let's training

00:44:59.720 our youth.

00:45:00.740 Um, the last one in this category and of empowering Canadians is protecting Canadian culture, values

00:45:06.340 and identity, uh, 474 million in 2027.

00:45:10.700 Um, so it's basically, uh, 132 million to fund department of women and gender equality.

00:45:18.940 Uh, they're going to cut off, you know, so now this is interesting.

00:45:22.860 It shows zero going to CBC, all right, to mainstream media.

00:45:27.500 So there's no more increases.

00:45:28.900 So the 1.4 billion they get a year is sitting in that.

00:45:32.760 When I talk about the operating costs, they've now moved that into the operating costs.

00:45:37.520 So now that's a standard fixed amount that's now in our deficits, that's 78.3 and 26 and

00:45:45.580 the 65 billion and 27.

00:45:48.020 So that's there.

00:45:49.100 Um, they don't want to, not that they're cutting off the CBC, the CBC still receives way more

00:45:54.900 money than a network requires to operate.

00:45:57.140 Yes.

00:45:57.520 Who's not profitable.

00:45:59.600 What they're saying is, see, this is what makes me nervous about the two buckets.

00:46:03.220 I, I don't know which bucket to look in because everybody, not everybody, but a huge outcry

00:46:08.640 was stop putting so much money into the CBC.

00:46:12.140 Yes.

00:46:12.580 Okay.

00:46:12.800 We will put it in this bucket guys.

00:46:15.740 Well, yeah, they've, they've basically the billion for whatever it turned out to be in

00:46:19.680 the end that's sitting over in the operating expenses right now.

00:46:22.500 Yeah.

00:46:22.800 So, so it's not like we're reducing anything from the CBC.

00:46:27.060 They just not increasing it.

00:46:28.300 Right.

00:46:28.480 Yeah.

00:46:28.920 So they're not increasing it.

00:46:30.040 So that's kind of, uh, they have a hundred and 34 million for music and film in Canada. 0.70

00:46:35.880 Garbage. 0.96

00:46:36.720 Yeah. 0.99

00:46:37.480 That's 10 movies.

00:46:38.940 Yeah.

00:46:39.160 For the most part.

00:46:40.040 Yeah.

00:46:40.440 Uh, they want to keep the strong, uh, Canadian strong pass for almost a hundred million dollars.

00:46:46.460 Uh, and of course, which is always a good thing, disability barriers for 81, uh, FIFA,

00:46:52.180 which is interesting.

00:46:52.940 So this year they're spending $43 million on it.

00:46:56.320 We talked about this, where's the money coming from?

00:46:58.600 Well, now we know the a hundred million.

00:47:00.260 So 43 this year and 57 and 27.

00:47:03.760 Um, and they, they're, uh, uh, you know, Terry Fox research is about 20 million, which is a

00:47:09.080 good thing.

00:47:09.580 It's a good thing to have happening.

00:47:10.760 Yeah.

00:47:11.120 So that's a pillar, pillar three.

00:47:13.720 So now pillar four.

00:47:16.260 So this is interesting.

00:47:17.240 So this is our defense pillar, um, which protecting Canada's sovereignty and security.

00:47:23.640 So 11.7 billion, uh, in 2027, only 0.9 of that is capitalized.

00:47:33.580 So this is all.

00:47:35.520 Remember that slush fund line that went up.

00:47:38.320 Yeah.

00:47:38.480 It's sitting in that, it's sitting in that line.

00:47:40.560 That's where they pull from it as required.

00:47:43.640 So now they see it as a priority for this year.

00:47:46.020 They put it into operating expenses.

00:47:47.840 Um, so it's sitting over there.

00:47:49.900 So that's really interesting.

00:47:51.020 And of course it is a priority right now because we've made a huge commitment to NATO.

00:47:55.160 We've made some pretty serious commitments to, uh, securing our border.

00:47:59.440 Yes.

00:48:00.000 Uh, so they know this, this money has to be spent now to get moving.

00:48:03.300 Well, he's still, you know, they're still putting in the budget that they're moving towards

00:48:06.820 the 5%.

00:48:08.620 Yeah.

00:48:09.840 Or so, yeah, so yeah, 5%, 3.5.

00:48:12.520 That's right.

00:48:12.880 It was 3.5 to 5%, uh, by 2028, I think it was.

00:48:17.880 Right.

00:48:18.060 It's 3.5 in the core expenditures and 1.5 in basically infrastructure.

00:48:24.220 So it's security related.

00:48:25.940 So roads, ports, all those things.

00:48:28.580 So they, oh, they stretched it out to 2035.

00:48:30.980 Yeah.

00:48:31.320 They stretched it out to 2035 now.

00:48:33.400 So, so they are saying they're going to do it.

00:48:35.680 You know, they're starting to put money aside.

00:48:37.520 They're putting money this year.

00:48:39.440 Uh, a lot of the money, quite frankly, is to build a force.

00:48:44.760 Right.

00:48:45.400 So, you know, as you go through it, they're trying to get people.

00:48:48.920 The big thing is they're trying to recruit.

00:48:50.480 So they've got a ton of money in to try to get people pay raises, healthcare benefits,

00:48:56.900 career paths.

00:48:58.420 Um, you know, uh, and so I think that's a good thing.

00:49:01.840 They've created a new division.

00:49:03.660 Uh, they've decided to save some money by.

00:49:07.520 Basically turning off some of their machinery that's costing them so much to retool, rebuild.

00:49:14.300 So, you know, they've, they're actually going to redo, uh, I guess they're going to, uh, repair

00:49:18.080 all of the bases as well, which is good because standard of living is not great for the, for

00:49:22.620 the military, they say.

00:49:23.860 Well, and a lot of it, but you know, it's funny because a lot of it right now is just

00:49:27.660 for them to, uh, find people and find places for them to sleep.

00:49:33.320 Right.

00:49:33.960 So we're at the point where it's that basic, right?

00:49:36.840 And then find ways, quite frankly, to buy equipment.

00:49:41.740 We're kind of at square one again, it seems from there.

00:49:44.500 It'll be interesting what we do with our, uh, our military on a global level, but also if

00:49:50.060 we increase it, what can we do here at home with our military?

00:49:53.160 And that's the other thing that I think a lot of countries, uh, for example, Japan that

00:49:57.660 does this kind of budgeting, their military is infrastructure maintenance in a lot of

00:50:02.120 ways when something disastrous happens or they need anybody, it's not, uh, city services

00:50:07.700 often or municipal services.

00:50:09.660 It is the military that comes in because they're part of that budget.

00:50:14.160 Yeah.

00:50:15.400 No, no.

00:50:15.880 That's there.

00:50:16.700 And you know, it's interesting.

00:50:18.100 I, you know, I did a show with Mike on defense and everything was 10 years, 15 years.

00:50:23.980 So they were buying equipment over 10 years, submarines over 10 years, everything was kind

00:50:29.420 of a decade, decade, decade.

00:50:31.220 They've now actually in this budget, they've actually taken it all back to five years.

00:50:37.800 So it's, uh, investments in additional logistics, utility, light utility and armored vehicles

00:50:45.220 and drone counter drones, long range precision strike capabilities, ammunitions have all been

00:50:51.920 kind of ramp.

00:50:52.520 A lot of the items have actually been brought back as far as the timeline of procurement.

00:50:56.960 Well, what they did with that procurement, as best I can tell is they bought stuff that's

00:51:00.180 already on the shelves.

00:51:01.180 You don't have to build a battleship.

00:51:03.740 These are things that can be purchased in a five year period of, of, you know, span.

00:51:08.960 Yes.

00:51:09.440 Uh, without any hesitation, if, if it was building submarines or aircrafts or something, yeah,

00:51:15.220 then it's going to be, there's no way they could have included that in this budget.

00:51:18.420 Yeah.

00:51:19.020 So, so no one has to share a gun anymore in the military.

00:51:22.780 Yeah.

00:51:23.440 So let's hope.

00:51:25.220 Look, just in case you don't know, we're hearing stories that when you leave your shift in the

00:51:30.320 Canadian military, you have to hand your weapon over to the person taking over that shift.

00:51:36.280 That means we're sharing, uh, sidearms.

00:51:38.940 That was stunning to me.

00:51:40.080 Yeah.

00:51:40.400 That was stunning.

00:51:41.100 And you know, they also, uh, put it, which is, I think it's terrific for the guys over

00:51:46.380 in Latvia.

00:51:47.240 Um, they put about a billion dollars into that, which is good.

00:51:50.460 They've got money in there.

00:51:51.740 Um, so hopefully that'll help them.

00:51:53.460 I know they struggled when they got to Latvia.

00:51:55.760 Yeah.

00:51:55.960 They had no, uh, bullets, no ammunition, no ammunition.

00:51:59.320 Yeah.

00:51:59.520 They went with rubber bullets and we had the, the other countries had to actually help them

00:52:04.080 out.

00:52:04.540 Okay.

00:52:04.820 You be Canada.

00:52:05.560 I'll be one of the other generals.

00:52:06.900 So everybody got their stuff.

00:52:08.200 Yeah.

00:52:08.880 We got our rubber bullets.

00:52:11.520 What?

00:52:12.220 What?

00:52:12.620 Yeah.

00:52:13.640 So, yeah.

00:52:14.420 So there were some, there were some challenges.

00:52:16.300 So I think they're, they're being overcome.

00:52:18.500 Um, and, and hopefully that'll, that'll get, and, uh, uh, everyone will be safe and, and,

00:52:25.280 uh, well, I think that we, uh, an increase in what we're doing with our military was well

00:52:31.060 overdue.

00:52:31.580 And so I don't think anybody's really going to argue the fact that we need to put some money

00:52:35.560 into that.

00:52:36.200 It's how we do it and what will come of that, that I think is, is, you know, going to be

00:52:41.220 interesting.

00:52:42.060 Yeah.

00:52:42.740 So, um, radar systems, uh, of course, all the things we need up in the Arctic actually

00:52:49.340 are in this budget.

00:52:50.180 So I think it's a pretty good, healthy budget for defense.

00:52:53.820 I, it was much needed, you know, commendable that he, he did get to it.

00:52:57.900 He did address it.

00:52:58.840 Um, and so on that, that side, I think, uh, long overdue, um, and the monies, uh, I think

00:53:05.800 are, are good, um, protecting our borders.

00:53:09.980 So the last part of this was basically strengthening law enforcement.

00:53:13.680 Um, so that's the RCMP contribution, you know, the, the additional RCMP people.

00:53:18.980 Um, I think there's, uh, 236 million in 2027 enhancing border services, 85 million.

00:53:27.000 Modernizing, uh, meteorological services.

00:53:30.960 I was trying to figure that one out.

00:53:32.820 I haven't dug into it.

00:53:33.760 So if anyone knows, cause that number goes up, believe it or not, that number goes crazy

00:53:37.900 high.

00:53:38.220 So, well, as I understand it, we have a, now it's, it's interesting that you point this

00:53:42.340 out.

00:53:42.560 We have a commitment to this alongside, uh, NATO as well, and it's not included in this NATO

00:53:48.500 spending for some reason, but it is that we start watching outer space.

00:53:53.660 Okay.

00:53:54.660 Yeah.

00:53:55.060 Well, we're going to spend some money cause, uh, it goes from 17 million this year to 302

00:54:01.380 million and 28, four 16 and 29 and 391 million and 30.

00:54:07.540 Our weather system monitoring has been something Canada has always been a sort of top of the

00:54:12.820 world at, and, uh, we've let it slip.

00:54:14.880 I think it has a lot to do with, we just didn't keep that infrastructure up.

00:54:20.740 Yeah.

00:54:21.500 Yeah.

00:54:21.980 I don't think so.

00:54:22.660 Removing assault rifles.

00:54:24.220 Uh, we continue that I think comes to, uh, it dies down.

00:54:28.560 It does after this year.

00:54:29.920 So this 27 is the last year of that program.

00:54:33.060 And then it basically goes to zero.

00:54:34.820 It's 217 million emergency management.

00:54:38.360 So, uh, 64 million.

00:54:40.840 So we did a show, Mike, it was very interesting, but you know, where, uh, at one point in Canada,

00:54:46.680 we had one person in the department.

00:54:49.240 That's what, that's crazy.

00:54:51.280 Yeah.

00:54:53.280 We had, we had actually, uh, going into COVID, we actually literally had like one person watching

00:54:57.120 for major emergencies.

00:54:58.540 Yeah.

00:54:59.540 So skinny because they had cut the budget so much.

00:55:01.540 It was insane.

00:55:02.540 So, uh, something major was coming at us like a pandemic or we weren't even talking about

00:55:09.140 it.

00:55:09.500 So, so now we put some money to it, which is great.

00:55:12.800 Improving asylum claim processing efficiency.

00:55:16.160 I don't really understand that one.

00:55:17.520 I think it's, I think it's kind of doing the scan.

00:55:20.240 I hope it is quite frankly, because, you know, uh, as you hear about all the people who we

00:55:25.320 don't track, we don't know criminal offenses when they come to the country.

00:55:29.000 So this is, I, I'm thinking from what I can, I've read on this, that is to do with that,

00:55:34.040 which I think is terrific, but only $33 million put in hope they use it wisely.

00:55:38.940 Yeah, indeed.

00:55:40.100 So it seems like a small amount to be honest.

00:55:42.440 It does seem very small.

00:55:44.000 So, okay.

00:55:45.220 So the last one, so more efficiency, uh, and effective government.

00:55:50.680 So, uh, chapter five or pillar five, uh, spend less and invest more, uh, modernized services,

00:55:58.300 a more efficient tax system and advancing indigenous tax jurisdiction framework.

00:56:04.220 That has been something that they've been addressing for, uh, and we can go through them

00:56:09.580 all, but the, the framework for, uh, indigenous tax, I think has been widely ignored, uh, for

00:56:16.740 some time and it is, we might be at that place now with our indigenous, uh, commerce that it makes

00:56:25.300 some sense for this to be in place.

00:56:26.920 Yeah.

00:56:27.380 I think the conversation is starting to happen on a deeper level.

00:56:30.580 So, you know, and, uh, you know, there's, there's been some, uh, chatter about it for

00:56:36.440 a while, as you mentioned, Mike.

00:56:37.600 So I think that'll advance in the coming years.

00:56:39.480 I think it, you know, it has to, as we move forward, but, um, so by the way, it's not heavily

00:56:44.620 opposed.

00:56:45.080 I don't think by the, the indigenous community, it's part of the plan. 1.00

00:56:49.360 Yeah.

00:56:49.740 It's part of the plan.

00:56:50.760 They put it in.

00:56:51.360 So, um, you know, we know, uh, there's roughly 368,000 or the worst 368,000, uh, federal workers

00:57:02.760 coming out of 24.

00:57:05.420 Um, they want to bring the population roughly to 330,000, uh, by 28, 29.

00:57:14.340 Okay.

00:57:15.220 So that's the plan to reduce the money.

00:57:17.860 So we're talking here about saving, how do they manage that?

00:57:21.120 Do you think?

00:57:21.880 Well, they're talking about saving 7.8 billion this year.

00:57:26.820 So they're going to hop on it fast.

00:57:28.660 They've, they've kind of capitalized those, uh, a small portion of that.

00:57:33.160 Okay.

00:57:33.520 Only 0.5, uh, or 500 million, but they're really going to talk, they're going to start

00:57:38.640 now.

00:57:38.900 So they are, they are planning to start.

00:57:41.100 Um, and it's about a 10% attrition.

00:57:45.480 Okay.

00:57:45.920 So they're just going to stop replacing people that, uh, retire out or voluntary departures,

00:57:51.680 give retirement pension out.

00:57:53.820 Right.

00:57:54.120 So, so that's their idea.

00:57:55.800 So they're going to start the program and, and they want to bring, bring the level down.

00:57:59.540 It just, they feel it got out of control.

00:58:01.720 And so now's the time to move, move it back to where it should be.

00:58:07.440 Well, I mean, to be honest with you, as we went through these pillars today, um, it looks

00:58:14.240 like some reasonable pillars to be paying attention to whether or not there's achievement on the

00:58:21.880 asset side of things, I think is, uh, remains to be seen.

00:58:26.120 And that's the one thing that does make me nervous about this kind of budget is we have

00:58:29.540 to really deliver on this stuff or that deficit balloons.

00:58:32.580 Well, yeah.

00:58:33.800 So it's interesting because we've, we've kind of said, okay, we're okay with the, the, and

00:58:40.020 this is for 2027.

00:58:41.560 We're, we're okay.

00:58:43.280 We're okay with the deficit of $65 billion.

00:58:47.620 Yeah.

00:58:48.040 So we've, we've kind of conceded that we're going to live with, uh, that deficit.

00:58:53.440 We're going to slowly bring government down.

00:58:55.720 So we're going to slowly reduce the operating costs because we hit the 78.3 this year in

00:59:01.100 26, we're going to go down, but we're going to go and we're going to spend, and we're

00:59:06.360 going to take those capital projects.

00:59:08.240 We're going to, which we're going to talk about specifically in the next show.

00:59:11.580 And we're going to go for it.

00:59:13.180 Can I ask you something, Paul?

00:59:14.000 How, how, which kind of budget do you prefer?

00:59:17.760 Do you like the old style of budget or do you appreciate this, the way that this has

00:59:22.080 been laid out?

00:59:24.200 Uh, no, I respect the way they've done it.

00:59:26.480 I really do.

00:59:27.200 I think it, I think it, it has merits.

00:59:29.380 Um, there's other nations, you know, we'll put it on the screen and show everyone.

00:59:33.040 Other countries do do this.

00:59:35.220 I think the accounting methodology is fine.

00:59:39.000 I think the challenge is how you track it, report it and pivot now becomes more important

00:59:45.120 because if you're going to, if you're going to ramp up and you're going to spend, you

00:59:49.520 know, $280 billion over five years, 56 billion in 2027, you know, you can't go five years

00:59:58.260 and miss all your goals.

00:59:59.540 You have to definitely, you know, you have to re, uh, re-engage and prosper in a number

01:00:05.660 of industries and a number of different sectors to make Canada work again.

01:00:09.940 And if you miss it, what happens is that capital spend just goes to deficit.

01:00:13.820 And if that capital spend goes to deficit as a nation, we're in trouble.

01:00:18.760 So I was going to ask you that.

01:00:19.820 I mean, how far down the road do we go before, I mean, at, at what point does this deficit

01:00:26.720 get to a point where we are no longer?

01:00:29.980 We'll know, we'll know when 27, 28, if, if we're not turning the corner by the end of

01:00:35.300 27, we probably have part of 28 to take a look at it.

01:00:39.680 If at that point it's not moving and we're spending at that clip, then we're going to

01:00:46.140 have to do a timeout and pivot again, because that's going to put us in really, really,

01:00:51.620 uh, troublesome waters.

01:00:53.760 So we'll, we'll know.

01:00:55.080 We'll know.

01:00:55.700 Paul, thanks for taking the time to explain the budget to me.

01:00:58.300 I know, you know what, you've really done an amazing job of tearing this down and just

01:01:02.060 making it really simple for me to, and, and for all of us to understand what's going on

01:01:06.320 here with this new kind of budget.

01:01:07.820 And, uh, you know, it was so hotly anticipated that it's nice to go through it bit by bit.

01:01:13.400 I appreciate it.

01:01:14.000 Thank you.

01:01:14.440 Thank you.

01:01:14.840 And, uh, do me a favor and all the viewers, any questions you have comments, please send

01:01:20.260 them along.

01:01:20.740 Uh, your input is, is definitely valued and to keep this discussion going, uh, would be

01:01:26.820 great.

01:01:27.080 So please subscribe, watch, and we have one more show coming up and the next show we're

01:01:32.200 doing is just breaking down the capital budget project by project line by line.

01:01:38.380 So stay tuned.

01:01:44.980 Do we have a very?

01:01:46.180 Do we have a very?

01:01:58.240 Have a great overall?

01:01:58.780 Do we have a good wine?

01:01:59.520 We have a good grill.

01:02:00.500 Do we have a good one?

01:02:01.260 Do we have a good

01:02:05.840 Fire.

01:02:06.780 Do we have a good fire for the following waters?

True Patriot Love - November 13, 2025

Canada’s 2025 Budget Explained： The 5 Pillars, Productivity & What Happens Next ｜ PART 2

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