Canada’s parliament has narrowly passed Prime Minister Mark Carney’s first federal budget, allowing his minority Liberal government to avoid an early election. The fiscal plan raises the deficit to a projected C$78 billion (approximately $55.3 billion) and was supported by key opposition MPs, including Green Party leader Elizabeth May.
The budget, which is the second-largest in Canada’s history, was approved with a vote of 170 in favor and 168 against. Opposition voices have criticized the fiscal plan, with the Conservative Party, led by Pierre Poilievre, and the Bloc Québécois voting against it. Critics have expressed concerns that the budget does not adequately address affordability issues, with Poilievre describing it as a “credit card budget” that fails to tackle the cost-of-living crisis.
Liberal MP Nathaniel Erskine-Smith acknowledged the investment benefits of the budget but raised questions about its effectiveness in addressing Canada’s housing crisis and climate action delays. The budget proposes C$140 billion in new spending over the next five years, aimed at enhancing productivity and competitiveness. It includes provisions for modernizing trade infrastructure to increase Canadian exports to non-US markets and offers direct support to businesses affected by US tariffs, with projected private sector investment of C$1 trillion.
To balance the budget, Carney has suggested reducing the federal workforce by 10%, a move that has faced backlash from public sector employees, who argue it may hinder government operations. The budget has already undergone two votes since it was first introduced in early November, amidst a backdrop of shifting alliances in the parliamentary landscape, including a recent defection from the Conservative Party.
As discussions continue around the effectiveness and implications of the budget, questions remain about its impact on various sectors and the future direction of Carney’s leadership.
Source: https://www.bbc.com/news/articles/cp8531xvy26o?at_medium=RSS&at_campaign=rss