Canada Passes Carney’s First Budget in Tight Parliamentary Vote

Published: 18 November 2025 Tuesday. The English Chronicle Desk. The English Chronicle Online

Canada’s parliament has narrowly approved Prime Minister Mark Carney’s first federal budget, allowing his minority Liberal government to avoid an early election. The fiscal plan, projected to raise Canada’s deficit to C$78 billion ($55.3 billion; £42.47 billion), passed with 170 votes in favour and 168 against.

The budget’s approval relied on key support from opposition MPs, notably Green Party leader Elizabeth May, who cited Carney’s commitment to climate targets as her reason for voting in favour. Many opposition lawmakers, including Conservative leader Pierre Poilievre, criticised the plan, describing it as a “credit card budget” that does little to address affordability and rising costs of living.

The budget outlines C$140 billion in new spending over five years to strengthen Canada’s productivity, competitiveness, and resilience. Initiatives include updating ports and trade infrastructure with the goal of doubling Canadian exports to non-US markets, and providing direct support for businesses affected by US tariffs. Carney’s government anticipates these measures will attract C$1 trillion in private sector investment.

To help balance the fiscal plan, Carney has proposed reducing the federal workforce by 10%, a move that has drawn criticism from public sector employees who warn it could slow government operations.

The budget was first proposed in early November and has already survived two votes. Debate around the plan was partially overshadowed by partisan drama, including the defection of Nova Scotia MP Chris d’Entremont to the Liberals and the resignation of Alberta MP Matt Jeneroux, raising questions about Conservative leadership. Poilievre confirmed he will remain as party leader, asserting his commitment to an affordable Canada.

Carney, a former central banker for both Canada and the UK, defended the budget as a “generational investment” designed to strengthen the Canadian economy over the long term, despite criticism from opposition parties.