The upcoming federal budget, the first to be presented under Prime Minister Mark Carney, is scheduled to be tabled in early November, as announced by Finance Minister François-Philippe Champagne during Tuesday’s question period. This date in early November deviates from the initial indication given by the government, which had previously suggested an October release. Despite various ministers clinging to the October timeframe in recent discussions, government House leader Steven MacKinnon had just mentioned on Monday that the budget would be unveiled in the following month as part of the Liberal fall agenda.
Traditionally, federal budgets are introduced in early spring. However, due to the limited sitting of the House following the April election earlier this year, the Liberals have shifted the budget presentation to the fall. The government is signaling its intention to uncover savings within federal finances by urging ministers and departments to pursue significant cost reductions and regulatory cuts. Additionally, Finance Minister Champagne has directed a review of all current and planned federal contracts in a bid to identify potential savings.
The Liberals have outlined plans to reduce government operational spending by 7.5% for the 2026-27 fiscal year, followed by further cuts of 10% in the subsequent year and 15% in 2028-29. Despite these austerity measures, Prime Minister Carney acknowledged that the deficit for the upcoming fiscal year is projected to exceed last year’s figure. This revelation comes after the public’s last insight into federal finances in December, with a reported deficit of $61.9 billion.
Carney attributed the deficit increase to several factors, including U.S. tariffs, subsequent federal support for affected industries, commitments to enhance NATO spending, and a federal income tax reduction. Despite the looming deficit, Carney emphasized that the budget would contribute to strengthening Canada. The Liberals are aiming to distinguish between operational budget expenditures and capital investments in the upcoming budget, intending to reduce expenses in the former while boosting investments in the latter.
To pass the budget, the minority government will require support from at least one other party in Parliament, as budgets are considered confidence votes. Conservative Leader Pierre Poilievre criticized the delay in presenting the budget and called on the government to address what he termed “reckless Liberal spending.” While not ruling out support for the budget, Poilievre stated that he would reserve judgment until reviewing the budget details.
