Carney government prepares to table federal budget amid mounting economic pressures

OTTAWA — Prime Minister Mark Carney’s Liberal government is preparing to table its 2026 federal budget on Thursday, November 5, amid growing concerns over government spending, economic uncertainty and the rising cost of living.

Finance Minister François-Philippe Champagne is expected to present a fiscal plan focused on strengthening Canada’s economic independence, accelerating infrastructure development and encouraging private investment, as the country continues to confront American tariffs and wider international instability.

The budget, the second under Carney’s leadership, is expected to outline measures supporting small and medium-sized businesses, improving productivity and reducing Canada’s economic dependence on the United States. Champagne has also indicated that the government intends to simplify certain tax provisions affecting Canadian businesses.

However, economists are warning Ottawa against allowing ambitious spending commitments to undermine fiscal stability. Higher global oil prices have provided additional federal revenues, but growing commitments in defence, infrastructure and economic development are raising questions about the government’s long-term deficit projections.

The government faces competing pressures to stimulate economic growth while addressing persistent affordability problems, including high grocery prices, housing costs and mortgage payments.

Conservative Leader Pierre Poilievre has called for greater spending restraint and measures to improve affordability, while the New Democratic Party is pressing for stronger public investment in essential services.

The budget is scheduled to be presented in Parliament at approximately 4 p.m. Eastern Time. Its financial projections and proposed spending measures are expected to shape the coming debate over the Carney government’s economic priorities.