The Government of Canada’s 2024 Fall Economic Statement (FES), released on December 16, 2024, introduces measures to support innovation, growth, and investment, which could benefit Saskatchewan businesses. However, the growing deficit and mixed fiscal signals raise serious concerns about Canada’s economic stability. With the deficit projected to exceed $61.9 billion for 2024-25—$21.9 billion higher than forecast—along with high public debt charges of $53.7 billion, the overall financial outlook presents significant challenges. These factors could undermine confidence and create uncertainty for businesses in Saskatchewan.

As noted by the Canadian Chamber of Commerce, “Without a change in course, Canada will continue to lose investment, businesses, and well-paying jobs to other markets, putting our families and communities in peril.” Saskatchewan businesses share this concern and emphasize the need for policies that unlock private-sector investment and drive long-term growth.

Saskatchewan Chamber’s Perspective

While the 2024 Fall Economic Statement includes some measures that align with Chamber’s advocacy—such as extending the Accelerated Investment Incentive—we remain concerned about the government’s broader fiscal policy. Mixed signals, including potential hikes to the capital gains inclusion rate and a digital services tax, could deter investment and stall growth.

CEO Prabha Ramaswamy emphasizes, “Quick implementation of targeted measures like the Accelerated Investment Incentive is crucial to ensure Saskatchewan businesses remain competitive. However, to truly drive economic recovery, the federal government must adopt a cohesive fiscal strategy that prioritizes long-term investment and avoids policies that undermine business confidence.”

While the Chamber recognizes the federal government’s efforts to promote investment, innovation, and growth, we remain deeply concerned about the escalating deficit and fiscal uncertainty. These challenges threaten the stability and predictability necessary for fostering private-sector investment. It is crucial that policymakers take immediate action to address these issues to ensure that Saskatchewan businesses can thrive in a more secure economic environment.

To learn more about the Fall Economic Statement click here. Find the Chamber’s policy priorities here.