Canada's Budget Battle: Carney's First Plan Approved by a Whisker

Tue Nov 18 2025 06:41:53 GMT+0200 (Eastern European Standard Time)

In a nail-biting vote, Canada's parliament has passed Prime Minister Mark Carney's first federal budget, giving his minority Liberal government a crucial victory.

Canada's parliament narrowly approved Prime Minister Mark Carney's proposed budget, which aims to raise the deficit to C$78 billion but has faced sharp criticism. The plan, drawing crucial support from opposition members, promises C$140 billion in new spending over five years, while also proposing a significant cut to the federal workforce. Carney described it as a 'generational investment' necessary for economic growth, despite concerns from various parties about affordability and climate commitments.

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. She told reporters she voted yes based on commitments made by Carney that he would support Canada's climate targets.

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

The budget includes C$140bn of new spending over the next five years to enhance productivity, competitiveness, and resilience, while also proposing a 10% reduction in the federal workforce.