Carney government unveils $142-billion budget to strengthen Canada’s economic sovereignty

OTTAWA — Prime Minister Mark Carney’s Liberal government unveiled its second federal budget on Thursday, November 5, introducing $142.1 billion in new spending and tax measures aimed at accelerating investment, strengthening economic sovereignty and reducing Canada’s dependence on the United States.

Presented by Finance Minister François-Philippe Champagne under the title Masters of Our Destiny, Budget 2026 projects a federal deficit of $62.3 billion for the 2026–27 fiscal year, approximately $3 billion below the government’s previous forecast.

The spending plan comes amid a challenging economic environment marked by weak growth, American tariffs and increasing pressure on Canadian industries. Ottawa is seeking to stimulate domestic investment through tax incentives, infrastructure development, energy projects and measures supporting Canadian businesses.

Among the budget’s major initiatives are investments in electricity infrastructure, critical minerals, affordable housing, defence and innovation. The government is also proposing a new Canada Strong Fund to attract private capital and support strategic industries.

Carney’s government has placed particular emphasis on diversifying Canada’s international trade relationships, with the objective of doubling exports to markets outside the United States by 2035.

The budget includes affordability measures for lower-income Canadians, additional housing investments and financial support for cultural institutions and journalism.

Opposition parties have raised concerns about the government’s fiscal priorities, the continuing federal deficit and whether the proposed investments will provide sufficient immediate relief to Canadians struggling with living costs.

The budget establishes the government’s economic priorities for the coming years, with its success depending heavily on private-sector investment, international trade conditions and the implementation of its proposed programs.