In brief
Canada's new federal budget, introduced by Prime Minister Mark Carney, outlines plans for extensive spending in the face of economic headwinds and a changing global landscape. Key highlights include significant investments in infrastructure and a strategic pivot towards new trade markets, alongside measures to address domestic challenges such as climate commitments and defense spending. The budget aims to balance ambitious initiatives with necessary fiscal adjustments.
The budget includes billions of dollars in spending that could balloon Canada's deficit to C$78.3bn (£42.6bn) - the second biggest on record. Carney and Finance Minister Champagne have defended the massive spending plan as an investment to help boost Canada's global competitiveness.
From trade to Eurovision: a global shiftCanada is looking to Europe and Asia with the aim of doubling non-US exports over the next decade. The budget proposes millions in backing for businesses working to develop new export markets.
Making Canada a 'clean energy superpower'Carney's fiscal plan proposes making Canada a clean energy superpower by supporting low-emission energy projects, while still grappling with its commitment to climate initiatives.
Sovereignty through defence - and space launchCanada will boost defence spending and plans to establish capabilities for space launches, positioning itself in the global security landscape.
Undoing the Trudeau eraCarney has begun to roll back former Prime Minister Justin Trudeau’s policies on climate and immigration, cutting targets for new temporary residents significantly from prior commitments.
Cushioning Canada from trade shocksThe government aims to spend C$5bn to help sectors affected by the ongoing trade war, coupled with initiatives to support domestic businesses.
