Prime Minister Mark Carney’s minority government narrowly survived a confidence vote on Monday as Canadian lawmakers endorsed a motion to begin debating his first federal budget – a result that avoids the prospect of a second election in less than a year.
The House of Commons voted 170-168 to advance study of the fiscal plan. While further votes are expected in the coming months, the slim victory signals that the budget is likely to be approved eventually.
“It’s time to work together to deliver on this plan – to protect our communities, empower Canadians with new opportunities, and build Canada strong,” Carney said on X, arguing that his spending blueprint would help fortify the economy against escalating United States tariffs.
The proposal includes a near doubling of Canada’s deficit to 78.3 billion Canadian dollars ($55.5bn) with major outlays aimed at countering US trade measures and supporting defence and housing initiatives. The prime minister has insisted that higher deficit spending is essential to cushion the impact of US President Donald Trump’s tariffs. While most bilateral trade remains tariff-free under an existing North American trade agreement, US levies on automobiles, steel and aluminium have struck significant sectors of the Canadian economy.
According to Carney, a former central banker, internal forecasts show that “US tariffs and the associated uncertainty will cost Canadians around 1.8 percent of our GDP [gross domestic product]”.
Credit: aljazeera.com
