CA Annual Budget Release

Canada's budget shortfall will more than double this year as Prime Minister Mark Carney pours billions of dollars to fight U.S. tariffs, boost defense spending and diversify trade, his maiden budget proposal showed on Tuesday. Canada's economy is experiencing a tectonic shift. A raft of tariffs from U.S. President Donald Trump are crippling the steel, auto and lumber sectors, forcing the government to invest in heavy financial support. At the same time, to appease Trump, Carney has dropped some tax measures and retaliatory tariffs ...

The federal government delivered a big-swing budget on November 4th but may have mismanaged expectations going into budget day. Expectations were high, but the plan mostly delivered on policy proposals that had been channeled if not already tabled. This may leave some pointing to a lack of ‘transformation’ but judging by numbers alone, the $149 bn spending plan is substantial (chart 3). chart The Carney government had earlier stated his ambitions of unlocking half a trillion in investment over the next five years—this has been ...

Prime Minister Mark Carney is set to present his government's first federal budget on Tuesday, and has warned Canadians to expect "sacrifices" as he aims to transform an economy battered by US President Donald Trump's tariffs. Carney has said the spending plan will see both significant cuts and "generational investments" to strengthen the economy and reduce the country's reliance on US trade. The plan is also expected to lay out how Canada will pay for billions of dollars in defence spending to fulfil the new Nato commitment to spend ...

A former assistant parliamentary budget officer says Prime Minister Mark Carney’s first budget will need to focus on investment and growth, as Canada struggles with the fallout of a trade war with the United States. “I think it’s fair to say we’re dealing with trade that’s been weaponized by our largest trading partner,” Sahir Khan, who’s also vice-president of the Institute of Fiscal Studies and Democracy at the University of Ottawa, told CTV News Channel Sunday. Nanos poll finds Canadians divided on budget priorities “We’re dealing ...

By just about every measure, Canada’s economy is stuck in a ditch. Growth has sputtered. The unemployment rate is rising. In normal times, the remedy is clear. The Bank of Canada cuts interest rates and the federal government boosts spending to help businesses and households weather the storm. These are decidedly not normal times. And Bank of Canada governor Tiff Macklem knows it. "The structural damage caused by tariffs is reducing our productive capacity and adding costs. This limits the ability of monetary policy to boost demand ...

The parliamentary budget officer said Thursday he expects the coming fall budget will reveal a sharp increase in Ottawa’s deficit that puts the government’s previous fiscal anchors in jeopardy. Ottawa’s fiscal watchdog Jason Jacques now projects the federal government will post an annual deficit of $68.5 billion this year, up from $51.7 billion last year. He said in a new report that he expects federal debt-to-GDP is no longer on a declining path over the medium term — a ratio that previously was a key fiscal anchor for the federal ...