There won't be a budget this year. How will that affect the economy?

Friday, May 16, 2025

Hello! This is Hanna Lee.

The Liberals have said they're not tabling a budget this year. We'll get into what that means for you. Then, a leaked Canadian military report, and the condo market meltdown.

The Liberals aren't tabling a budget. How does that affect the economy?

Prime Minister Mark Carney's government is not planning to put out a budget this spring, opting for an economic statement in the fall as the next look into the country's finances. (Justin Tang/The Canadian Press)

The government isn't planning on releasing a budget this year, opting instead for an economic statement this fall. This could erode economic confidence, experts say, and delay the Liberals' ambitious agenda.

The typical schedule: Usually, a budget is tabled in March or April, and passed before the House rises in June. But, as you'll recall, Parliament was prorogued in January and the election campaign began in March. The House is set to return at the end of May, and is scheduled to rise for the summer before the end of June. That gives the Liberals little time to prepare a full budget.

What experts say: Though the Liberals have argued economic uncertainty makes it difficult to create a full budget, experts say not doing so could in fact worsen said uncertainty. For example, people will have less confidence in buying government bonds without a clear picture of the government's finances. One person said it would make sense to at least provide a fiscal snapshot this spring, then table a full budget in October. Currently, spending is accounted for until June through a special warrant. But after that, the Liberals will have to provide spending estimates to cover costs.

Get the full story here from my colleague Darren Major

Leaked Canadian military report shows many new recruits are quickly leaving

The struggle to recruit new members has been a major preoccupation as the Canadian Armed Forces face a shortage of up to 14,000 qualified personnel. (Evan Mitsui/CBC)

A new leaked internal report obtained by CBC News suggests many Canadian Forces recruits are quickly leaving in frustration over the inability to get trained and into the job they want. Meanwhile, it's been difficult to retain soldiers, sailors and aircrew, as the Department of National Defence office was recently defunded.

What's happening: The Canadian Armed Forces are facing a shortage of up to 14,000 qualified personnel. But what's gotten less attention is the effort to retain people, especially in the critical technical trade.

Who's leaving the most: New recruits, who in some cases are waiting over 206 days for training, frustrating members as they face potentially months of underemployment. The military has made attempts to address the issue, including with a new strategy and program office, but they've made little progress. One of the biggest complaints of departing members has been feeling like senior commanders have the wrong priorities, prioritizing cultural change over operational needs such as equipment.

Get the full story from my colleague Murray Brewster

The condo market is slowing down. Where are all the buyers?

Toronto's skyline has been transformed by condominiums in recent years. (John Badcock/CBC)

The condo market is melting down — particularly in Toronto and across southern Ontario. Sales in the Greater Toronto Area fell 30 per cent year over year in April, and the average price is down nearly 17 per cent since the market peak in 2022. What's going on?

Econ 101: In addition to a record wave of newly built condos, unsold units are piling up — in Toronto, there's seven months' worth of inventory, one real estate agent said. The surplus means buyers are shopping around and looking for deals, and in turn, sellers can no longer expect the prices of the overheated market of a few years ago.

Demand is falling: At the same time, buyers are disappearing. Condos mostly remain out of reach for would-be first-time homebuyers. Meanwhile, the sizes and layouts of many units, particularly in Toronto, leave much to be desired. This was once the easiest path for builders: crank out many small units so that investors can rent or flip them quickly. But the tables have turned on investors, who may be left holding the bag as downward demand, in turn, drives down their property values.

Get the full story here from my colleague Nisha Patel

This man will listen to you talk about anything, and he won't charge a dime

Paul Jenkinson, left, chats with Steve Skafte, author of This River was Once a Road, in Victoria Park in Truro, N.S. Jenkinson, a retired social worker, is on a cross-Canada listening tour. (Submitted by Paul Jenkinson)

Paul Jenkinson, a retired Nova Scotia social worker, is embarking on a cross-Canada listening tour with two chairs, a folding table, a sign, and a goal: to listen to you.

The 70-year-old worked for years as a registered social worker, and has decades of life experiences to draw from, including a divorce and the sudden death of his daughter a few years ago.

"I'm there as a fellow human to make connections," he said. "I just create that safe space for them, a little bit like the stranger on the airplane that you're never going to see again."

He's currently travelling around Nova Scotia. Then, he'll head to P.E.I., eventually going west and planning to spend the winter in B.C. He'll go anywhere he's invited and has a place to stay, he says. And don't worry — so long as you're not going to harm yourself or someone else, he'll keep everything confidential.

Get the full story here

Today in History: May 16

1975: Japan's Junko Tabei becomes the first woman to reach the summit of Mount Everest.

1990: Muppets creator Jim Henson dies of a bacterial infection at age 53.

2012: A report from Ontario's independent police watchdog finds the police violated civil rights, detained people illegally, and used excessive force during the 2010 G20 summit in Toronto.

(With files from The Canadian Press, The Associated Press and Reuters)

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