Overview
- Prime Minister Mark Carney signalled he is prepared to fight an election if the Nov. 4 budget is defeated, and the government does not yet have the votes to pass it.
- The fiscal plan will separate capital and operating spending, with a pledge to balance the operating side within three years.
- Finance Minister François‑Philippe Champagne directed departments to find reductions of roughly 7.5 percent next year, 10 percent the following year and 15 percent by 2028–29, prompting unions to warn of significant job losses, including a cited risk near 70,000 positions if staffing returns to pre‑pandemic levels.
- Defence spending will climb to meet new NATO commitments, with ministers saying the budget will lay track toward reaching 5 percent of GDP by 2035 and $9 billion pledged by March 31, 2026.
- Independent forecasts point to a much larger deficit than last year’s $42 billion projection, with estimates generally ranging from about $75 billion to near $100 billion.