Canada's parliament has narrowly approved Prime Minister Mark Carney's first federal budget, allowing his minority Liberal government to avert an early election. The fiscal plan, which raises Canada's deficit to a projected C$78 billion (approximately $55.3 billion), received crucial support from opposition MPs, notably Green Party leader Elizabeth May. The budget passed with a slim margin of 170 votes in favor to 168 against it.
Critics have slammed the budget, describing it as the second-largest in history and arguing it falls short in addressing key issues like affordability. Carney, who was formerly the central banker for both Canada and the UK, defended the budget as a generational investment aimed at strengthening Canada's economy.
The vote was pivotal for Carney's Liberal government, which currently holds two seats fewer than the majority needed. The budget's passage was contingent not just on Liberal support but also required backing from at least two opposition MPs or abstentions from several others. Notably, two NDP members and House Speaker Francis Scarpaleggia abstained. Green Party leader May cited commitments from Carney regarding climate targets as her reason for supporting the budget.
On the flip side, Conservative Party members, led by Pierre Poilievre, vehemently opposed the plan, labeling it a credit card budget that neglects the cost-of-living concerns of Canadians. Critics voiced that while the budget promises significant spending aimed at fostering productivity and resilience, it lacks clear measures to tackle the housing crisis and environmental challenges.
This budget envisages C$140 billion in new spending aimed at enhancing Canada's productivity and competitiveness over the next five years. It includes investments in trade infrastructure intended to double exports to non-U.S. markets by 2035 and provides relief for businesses impacted by U.S. tariffs.
However, the government’s proposal to cut the federal workforce by 10% over subsequent years has drawn sharp criticism from public sector employees, who warn that such cuts could hinder governmental operations.
Despite the surrounding political drama — including the recent defection of Conservative MP Chris d'Entremont to the Liberals and the resignation of another Conservative MP — Carney's budget remains a focal point in Canadian politics as it navigates partisan challenges in its bid to implement a vision of economic resiliency for the future.
Critics have slammed the budget, describing it as the second-largest in history and arguing it falls short in addressing key issues like affordability. Carney, who was formerly the central banker for both Canada and the UK, defended the budget as a generational investment aimed at strengthening Canada's economy.
The vote was pivotal for Carney's Liberal government, which currently holds two seats fewer than the majority needed. The budget's passage was contingent not just on Liberal support but also required backing from at least two opposition MPs or abstentions from several others. Notably, two NDP members and House Speaker Francis Scarpaleggia abstained. Green Party leader May cited commitments from Carney regarding climate targets as her reason for supporting the budget.
On the flip side, Conservative Party members, led by Pierre Poilievre, vehemently opposed the plan, labeling it a credit card budget that neglects the cost-of-living concerns of Canadians. Critics voiced that while the budget promises significant spending aimed at fostering productivity and resilience, it lacks clear measures to tackle the housing crisis and environmental challenges.
This budget envisages C$140 billion in new spending aimed at enhancing Canada's productivity and competitiveness over the next five years. It includes investments in trade infrastructure intended to double exports to non-U.S. markets by 2035 and provides relief for businesses impacted by U.S. tariffs.
However, the government’s proposal to cut the federal workforce by 10% over subsequent years has drawn sharp criticism from public sector employees, who warn that such cuts could hinder governmental operations.
Despite the surrounding political drama — including the recent defection of Conservative MP Chris d'Entremont to the Liberals and the resignation of another Conservative MP — Carney's budget remains a focal point in Canadian politics as it navigates partisan challenges in its bid to implement a vision of economic resiliency for the future.
