Prime Minister Mark Carney’s minority Liberal government passed its budget by a slim 170-168 margin. The victory came with support from a Green MP and abstentions from some New Democrats, helping Ottawa avoid another federal election.
What the Budget Includes
Carney’s budget promises “generational” investments in infrastructure, defense, and innovation. At the same time, it signals deep cuts to government operations, aiming to shrink waste and boost efficiency.
Finance Minister François-Philippe Champagne argues the plan balances bold spending with fiscal responsibility, responding to pressure from U.S. tariffs and Canada’s shifting economic landscape.
Political Drama Behind the Vote
The government needed help from opposition parties just to pass this budget. Carney’s Liberals do not hold a majority, forcing them to rely on a Green MP’s vote and NDP abstentions.
Interim NDP leader Don Davies said Canadians don’t want another election so soon, citing global uncertainty and the recent U.S. trade situation. Meanwhile, Conservative critics, including leader Pierre Poilievre, slammed the budget as overly risky.
Risks and Criticism
Some analysts warn that running large deficits — forecasted at tens of billions — could backfire politically. Others argue that Carney’s spending plan over-promises and underdelivers on structural reforms.
Critics on the right say the budget lacks discipline, while voices on the left want stronger protections for social programs and more focused climate action. Carney’s financial plan now ties his government’s survival to the goodwill of rival parties.
See also: Conservatives Oppose Carney Budget, Poilievre Unclear on Whip
