Canadian Prime Minister Mark Carney has introduced his first federal budget - a blueprint for how he plans to deliver on his promise to make Canada's economy the strongest in the G7.
The ambitious plan is as much a political document as a spending blueprint, warning that Canada is in an era of significant change not seen since the fall of the Berlin Wall. Finance Minister François-Philippe Champagne highlighted that there's some headwinds on the horizon. That's why we need a strong response. Here are six takeaways from the spending plan.
The budget includes billions of dollars in spending that could balloon Canada's deficit to C$78.3bn (£42.6bn) - the second largest on record. Carney and Champagne have defended the massive spending plan, totaling C$280bn, as an investment to boost Canada's global competitiveness and attract C$1tn in investment over the next five years. This funding will cover highways, ports, electrical grids, and housing.
However, necessary sacrifices are indicated with plans to cut C$60bn in spending over the next five years, which includes reducing 40,000 public sector jobs by 2029. For the first time, distinctions are made between operational spending and capital investments in the budget.
Canada is also pivoting towards Europe and Asia, eyeing a doubling of non-US exports over the next decade amid uncertainty due to past U.S. tariffs. This shift includes millions in financial backing for businesses exploring new export markets.
In a bid to become a clean energy superpower, the budget supports low-emission energy projects while proposing carbon capture technologies and reaffirming commitments to the industrial carbon tax.
On the defense front, plans for C$81.8bn in spending will help Canada meet NATO targets amidst a changing global landscape. Additionally, the budget proposes developing Arctic infrastructure for security and economic purposes.
Ultimately, Carney's budget shows a significant departure from previous policies, cutting immigration targets and scrapping several initiatives, including the consumer carbon tax and Trudeau's 2 Billion Trees program, highlighting an ideological shift in Canada's governance.
