Canada's Parliament Approves Mark Carney's First Budget Amid Controversy

Tue Nov 18 2025 07:44:42 GMT+0200 (Eastern European Standard Time)

In a tightly contested vote, Canada's Parliament passes Prime Minister Mark Carney's first federal budget, raising the country's deficit as opposition voices raise concerns over affordability.

After a narrow vote, Canada's Parliament has approved Prime Minister Mark Carney's first federal budget, which raises the deficit to a projected C$78 billion. The budget received support from opposition MPs, including Green Party leader Elizabeth May, who emphasized climate commitments. Critics of the plan, including the Conservative Party and Bloc Québécois, argue it does not adequately address affordability issues facing Canadians. The budget aims for substantial investments and infrastructure updates but proposes significant cuts to the federal workforce.

Canada's parliament has narrowly approved Prime Minister Mark Carney's first federal budget, allowing his minority Liberal government to avert an early election.

The fiscal plan, which raises Canada's deficit to a projected C$78 bn ($55.3 bn; £42.47 bn), was passed thanks to crucial support from opposition MPs, including Green Party leader Elizabeth May.

Many opposition lawmakers have sharply criticised the fiscal plan - the second largest in history. The plan passed with 170 votes in favour and 168 against it.

Carney, who served as the former central banker for both Canada and the UK, has defended the budget as a generational investment to help Canada strengthen its economy.

The vote was crucial for Carney's Liberal government, which currently sits two seats short of a majority.

It meant that if all 169 Liberal MPs voted in support, the budget would need the backing from either two opposition MPs or have four opposition MPs abstain.

Two NDP MPs abstained along with House Speaker Francis Scarpaleggia, who casts a vote in the event of a tie. Conservative MPs Shannon Stubbs and Matt Jeneroux also abstained.

Green Party leader Elizabeth May's support proved crucial. May told reporters she voted yes based on commitments made by Carney that he would support Canada's climate targets.

Without what I heard from the Prime Minister today, I would have voted no, she said.

The Conservative Party, led by Pierre Poilievre, and the Quebec nationalist Bloc Québécois both voted against the budget, accusing Carney's government of failing to address affordability concerns.

Poilievre labelled the budget a credit card budget, arguing it does little to tackle the cost-of-living crisis.

The budget proposes C$140bn of new spending over the next five years to strengthen Canada's productivity, competitiveness, and resilience.

It includes money to update ports and trade infrastructure, aiming to double Canadian exports to non-US markets over the next decade.

Additionally, the plan allocates direct support for businesses hurt by US tariffs on Canadian goods, with Carney's government projecting the initiatives will attract C$1 trillion in private sector investment over the next five years.

To balance the fiscal plan, Carney has proposed cutting the federal workforce by 10% over the coming years, a move that has drawn strong criticism from public sector employees who caution that a leaner workforce would slow government operations.

The budget has survived two votes already and was first put forward in early November.

Debate around it had been partially eclipsed by partisan drama between Carney's Liberals and the Conservative opposition, who lost a member of their caucus to the Liberals shortly after the fiscal plan was proposed.

Chris d'Entremont of Nova Scotia said he defected over what he believed was Conservative leader Pierre Poilievre's negative style of politics. He added that the Liberal budget hits the priorities of his constituents.

Another Conservative lawmaker, Matt Jeneroux of Alberta, later resigned from parliament that same week, stating he did so to spend more time with family. Poilievre stated he plans to continue leading the party, fighting for an affordable Canada.