Ottawa’s New “Canada Strong” Budget Brings Relief for Calgarians — But at a Cost
The federal government’s new budget, Canada Strong, lands with a mix of good news and growing unease. It delivers real, short-term relief for Calgarians and signals a friendlier stance toward Alberta’s energy sector — but the ballooning national debt remains the story behind the story.
For everyday Calgarians, the most immediate win is at the pump. The federal consumer carbon price on fuels is gone. That means no more charge on gasoline, diesel, or natural gas — an estimated savings of about 18 cents per litre. It’s a move that could make a noticeable difference on long commutes, utility bills, and household budgets across the city.
In an even bigger nod to Alberta’s economy, Ottawa appears to be backing away from its previously proposed hard cap on oil and gas emissions. Instead, the plan shifts toward carbon markets, tougher regulations, and major investment in Carbon Capture, Utilization, and Storage (CCUS). The budget extends full tax credit rates for CCUS projects through 2035 — a decision expected to spark confidence, investment, and job stability in Alberta’s energy industry.
On the infrastructure front, the government is creating a new $51-billion Build Communities Strong Fund over the next decade. The money will flow through the provinces to cities like Calgary to support housing-related projects — roads, transit, and water systems — all critical to unlocking new housing and keeping construction jobs local.
But here’s the catch: the national deficit is set to nearly double. Ottawa projects a shortfall of $78.3 billion for 2025-26, raising serious fiscal red flags. Interest payments on Canada’s debt now top $1 billion per week — cash that could have gone toward health care, infrastructure, or tax relief. For fiscally cautious Alberta, that’s an unsettling trend.
Climate advocates also see risk. Dropping the hard emissions cap may ease industry pressure, but it could also slow Canada’s overall progress on climate goals.
Calgary Mayor Jeromy Farkas struck a “cautiously optimistic” tone, noting the lack of clear funding for major local priorities such as the Green Line LRT and key irrigation projects. The concern isn’t the promise of money — it’s whether that money arrives on time and in full.
"Canada Strong" offers immediate wins for Alberta — cheaper fuel, policy relief for oil and gas, and potential infrastructure dollars — but the long-term cost of Ottawa’s ambitious spending will be closely watched by local leaders and taxpayers alike.
