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5m ago

Carney Pitches Investment-Heavy Budget as $78.3-Billion Deficit and $1‑Trillion Target Draw Scrutiny

The minority government is selling tax-focused, infrastructure-heavy plans ahead of a mid‑November confidence vote.

Prime Minister Mark Carney holds up copies of the budget before the tabling of the federal budget on Parliament Hill in Ottawa, on Tuesday, Nov. 4, 2025. THE CANADIAN PRESS/Justin Tang
Prime Minister Mark Carney holds up a copy of the budget as he and Minister of Finance and National Revenue Francois-Philippe Champagne, not shown, make their way to the House of Commons for the tabling of the federal budget on Parliament Hill in Ottawa, on Tuesday, Nov. 4, 2025. THE CANADIAN PRESS/Justin Tang
Minister of Finance Peter Bethlenfalvy speaks during Question Period at Queen’s Park in Toronto, on Monday, Oct. 20, 2025. THE CANADIAN PRESS/Laura Proctor
Finance Minister Francois-Philippe Champagne, left, shakes hands with Prime Minister Mark Carney after delivering his budget speech in the House of Commons on Tuesday.

Overview

  • Carney argues the five-year $1‑trillion investment ambition may be understated, while business leaders and the Bank of Canada governor say delivery hinges on bankable projects, faster approvals and a lighter regulatory burden.
  • The plan projects a $78.3‑billion shortfall in 2025/26 with the debt ratio near 43 percent, paired with roughly $60‑billion in internal savings that include cutting about 40,000 federal public-service positions.
  • Core measures feature a temporary “productivity super‑deduction” for immediate expensing, enhancements to SR&ED, an expanded critical‑minerals credit and a 10‑year, $51‑billion local infrastructure fund that analysts note relies partly on reallocated money.
  • Tax changes include eliminating the underused housing tax and scrapping the luxury levy on aircraft and vessels while keeping it on high‑priced cars, with bare‑trust filing requirements deferred to 2026.
  • Political dynamics shifted after Conservative MP Chris d’Entremont joined the Liberals, moving them within two votes of a majority as opposition parties and economists question the realism of the growth and investment assumptions.