On October 6, the Ministry of Finance of Canada announced a major reform in the way the national budget is drawn up, introducing a new "capital budget framework" to address the severe challenge of Canada's sluggish growth in the field of commercial investment.

According to a press release released by the Ministry of Finance, the ¡°Capital Budget Framework¡± will clearly distinguish between the government¡¯s ¡°day-to-day operating expenditure¡± and the ¡°capital investment expenditure¡± aimed at stimulating capital formation in the public and private sectors.

Capital investment expenditure is defined as any government expenditure or tax incentive that contributes to the formation of capital in the public or private sector, mainly including capital transfer payments for infrastructure construction, income tax incentives that stimulate the formation of capital in enterprises, exchange fees for federal government-owned assets, funds to support R&D and commercialization of enterprises, subsidies to attract large-scale private investment and measures to accelerate housing supply.

The data show that since 2015, Canada¡¯s level of investment has stagnated, especially in areas such as intellectual property, advanced technology and modern manufacturing, and Canada¡¯s investment concentration is behind many countries.