Overview
- Canada’s first Carney budget will be tabled Tuesday in a minority Parliament, and the vote is a confidence test that would trigger an election if defeated.
- The Liberals do not yet have the support they need and must secure roughly three opposition votes or abstentions to pass the fiscal plan.
- Carney casts the budget as generational investments to diversify trade away from the United States and to build national infrastructure and energy projects.
- The package lays track toward a major defence buildup targeting NATO’s 5% of GDP by 2035, offset in part by departmental cuts of 7.5% in 2026–27 rising to 15% by 2028–29 and a pledge to balance the operating account within three years.
- Carney says he apologized to President Trump over an Ontario anti-tariff ad that disrupted trade talks, as Conservatives demand a $42 billion deficit cap and carbon-tax changes and the PBO pegs this year’s deficit near $46 billion.