The federal and provincial governments have been underfunding universities for decades. Recently, universities were able to start recruiting foreign students to make up for the shortfall, but it looks like that money tap will be turned down. It doesn't look like there's a plan to make up for it.
At the same time, the feds want to
recruit more than 1,000 top international researchers to Canada, with the budget injecting up to $1.7-billion into a suite of recruitment measures.
That'll be tough if universities see their income crater.
Almost all Canadian Universities (and the ones we are really talking about here) are all non-profit. They reinvest any profits back into the institution to improve their capacity for research. This is why Canada has some of the world's leading research universities. They are not profiting to make individual people richer, they are profiting to make society and our future richer.
This is starting to change though. There are unfortunately a growing number of for-profit "universities" in the country but most of them are transparently low quality diploma-mills (which is a whole different problem that needs dealing with) and aside from misleading naive domestic and mostly international students and separating them from their money, they remain of very marginal educational or research significance. That may not continue though unless we do something to support our large majority of non-profit universities.