Finance Minister François-Philippe Champagne used a Toronto breakfast speech on Monday to preview Thursday's federal budget, saying it will concentrate on entrepreneurs and on easing the tax burden that small and medium-sized businesses face. The budget is the second under Prime Minister Mark Carney and is expected to back the Liberal government's push to reduce Canada's reliance on the United States by strengthening the domestic economy.

What does the budget aim to achieve?

Champagne told the Canadian Club of Toronto that Ottawa wants to spur private investment and productivity beyond the country's largest companies. He pointed to the complexity of the tax code as a barrier, saying smaller firms often need an adviser to work through assorted niche provisions. According to Champagne, Thursday's plan will begin fixing those issues so that business representatives recognize themselves in it. He also said Canada's top credit rating gives the government room to invest in long-term growth.

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Which tax changes are being requested?

Champagne did not detail specific measures, but business groups have published pre-budget asks that may signal the direction. The Canadian Federation of Independent Business, which represents small and medium-sized firms, wants Ottawa to cut the small business tax rate and raise the income threshold that qualifies for the preferential rate, among other changes. Investor groups including the Canadian Venture Capital & Private Equity Association and the Council of Canadian Innovators have called for tax changes they say would encourage investment in Canadian companies. Scotiabank economist Rebekah Young's pre-budget report flagged possible capital gains incentives for startups and lower tax rates at higher incomes.

What else is happening in Ottawa?

The budget lands amid a busy political week. Carney was set to fly to Antigua and Barbuda for a Commonwealth leaders' summit focused on trade, investment and collective security, a day after what he described as a productive call with U.S. President Donald Trump on the future of Canada-U.S. trade. Six federal by-elections are also scheduled for Dec. 7, following resignations that included former environment minister Steven Guilbeault.

FAQ

When will the budget be tabled?

The federal budget is scheduled for Thursday, Nov. 5, according to Champagne's announcement.

Has the government confirmed specific tax measures?

No. Champagne has only hinted at simplification and support for small businesses; the details will be known when the budget is presented.