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Canada's Parliament Narrowly Backs Carney's C$78bn Deficit Budget
Canada's parliament approved Prime Minister Mark Carney's first federal budget late Tuesday, securing his minority Liberal government's survival and avoiding a snap election. The fiscal plan, projecting a C$78bn (US$55.3bn; £42.47bn) deficit-the second-largest in national history-passed by a razor-thin margin of 170 to 168, relying on critical support from opposition lawmakers, including Green Party leader Elizabeth May.
Opposition Divisions Seal the Vote
With the Liberals holding 169 seats-two short of a majority-the budget required backing from at least two opposition MPs or four abstentions. Two New Democratic Party (NDP) members abstained, alongside House Speaker Francis Scarpaleggia, who votes only in ties. Conservative MPs Shannon Stubbs and Matt Jeneroux, the latter having announced his resignation earlier this month, also abstained.
May's vote proved decisive. She cited Carney's private assurances on climate commitments as the reason for her support. "Without what I heard from the prime minister today, I would have voted no," she told reporters. The Conservative Party, led by Pierre Poilievre, and the Bloc Québécois unanimously opposed the budget, condemning its failure to address affordability pressures.
"The prime minister's costly deficit gambles our future on the national credit card."
Pierre Poilievre, Conservative Party leader, House of Commons (November 17, 2025)
Budget Highlights: Trade, Climate, and Public Sector Cuts
The C$140bn five-year spending plan targets productivity, competitiveness, and economic resilience. Key allocations include:
- Trade infrastructure: Upgrades to ports and logistics networks, aiming to double exports to non-US markets by 2035.
- Tariff relief: Direct aid for businesses affected by US tariffs on Canadian goods.
- Private investment: Projections of C$1tn in private-sector capital over five years, spurred by government initiatives.
To offset costs, Carney proposed a 10% reduction in the federal workforce-a move public-sector unions warned would cripple government efficiency.
Internal Liberal Criticism
Liberal MP Nathaniel Erskine-Smith, while backing the budget, criticized its gaps in housing and climate policy. "There's much-needed investment here, but it doesn't go far enough on the crises Canadians face daily," he remarked.
Political Fallout: Conservative Defections and Leadership Questions
The budget debate coincided with Conservative infighting. Nova Scotia MP Chris d'Entremont defected to the Liberals in early November, citing Poilievre's "negative" leadership style and the budget's alignment with his constituents' priorities. Alberta MP Matt Jeneroux resigned the same week, citing personal reasons.
Poilievre, facing scrutiny over his caucus's stability, reaffirmed his intent to remain leader. "My plan is to continue fighting for an affordable Canada where hardworking people can afford homes and groceries," he told reporters Wednesday.
What's Next
The budget, first tabled in early November, has now survived three confidence votes. Analysts suggest Carney's government may face further tests as opposition parties regroup, though the immediate threat of an election has subsided. Implementation of the workforce cuts and trade initiatives will likely dominate the coming months.
