Carney’s First Budget Proposes Billions in New Spending

Finance Minister François-Philippe Champagne’s first federal budget projects a $78 billion deficit for 2025-26, amid $141 billion in new spending over five years, offset by $51.2 billion in cuts. The budget aims to address a grim economic outlook, with rising unemployment and weak productivity, through significant investments in infrastructure, military, and tax incentives. It also plans to reduce the public service by nearly 40,000 jobs, scale back immigration, and potentially scrap the Trudeau-era emissions cap. Key initiatives include a $51 billion infrastructure program and fast-tracking major projects like high-speed rail.

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