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Economic Viewpoint

Federal Infrastructure Spending

A New Tune or the Same Old Song?

June 4, 2025
Randall Bartlett
Deputy Chief Economist

Highlights

  • In its 2025 election platform, the Liberal Party of Canada committed to investing nearly $25B over the next four years in non-defence, non-residential infrastructure related to transportation, energy, digital assets and other priorities. There was also a commitment to attract more private sector infrastructure investment in Canada.
  • However, Canadians may be understandably skeptical of these ambitious plans. Following the 2015 election, nearly $188B in new and existing infrastructure spending was approved under the Investing in Canada Plan, but less than $110B ultimately made it out the door.
  • The single most successful infrastructure investment by the Government of Canada in the last decade may been the Trans Mountain Expansion Project (TMX). TMX demonstrated that the Government of Canada can improve the transparency, accountability and outcomes of federal infrastructure investment when it has a direct ownership stake. In contrast, transfers tend to miss the mark in achieving federal priorities.
  • If the federal government delivers on its plan to invest almost $25B in infrastructure over the next four years, it could increase the level of real GDP by 0.6%. But regulatory, financial, labour and capital constraints could be significant headwinds.
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.