Canada's parliament has narrowly approved Prime Minister Mark Carney's first federal budget, allowing his minority Liberal government to avert an early election.
The fiscal plan, which raises Canada's deficit to a projected C$78 bn ($55.3 bn; £42.47 bn), was passed thanks to crucial support from opposition MPs, including Green Party leader Elizabeth May.
Many opposition lawmakers have sharply criticised the fiscal plan — the second largest in history. The plan passed with 170 votes in favour and 168 against it.
Carney, who served as the former central banker for both Canada and the UK, has defended the budget as a generational investment to help Canada strengthen its economy.
The vote was crucial for Carney's Liberal government, which currently sits two seats short of a majority. It meant that if all 169 Liberal MPs voted in support, the budget would need the backing from either two opposition MPs or have four opposition MPs abstain.
Two NDP MPs abstained along with House Speaker Francis Scarpaleggia, who casts a vote in the event of a tie. Conservative MPs Shannon Stubbs and Matt Jeneroux — who announced earlier this month that he was resigning — also abstained.
Green Party leader Elizabeth May's support proved crucial. May told reporters she voted yes based on commitments made by Carney that he would support Canada's climate targets. Without what I heard from the Prime Minister today, I would have voted no, she said.
The Conservative Party, led by Pierre Poilievre, and the Quebec nationalist Bloc Québécois both voted against the budget, accusing Carney's government of failing to address affordability concerns. Poilievre labelled the budget a credit card budget, arguing it does little to tackle the cost-of-living crisis.
Liberal MP Nathaniel Erskine-Smith, who supported the budget, raised concerns of his own, suggesting that while the plan offered much-needed investment, it fell short of addressing Canada's housing crisis and stalled progress on climate action.
The budget proposes C$140bn of new spending over the next five years to strengthen Canada's productivity, competitiveness, and resilience. It includes money to update ports and other trade infrastructure with the goal of doubling Canadian exports to non-US markets over the next decade.
Additionally, the plan allocates direct support for businesses hurt by US tariffs on Canadian goods, with Carney's government projecting that the initiatives will attract C$1 trillion in private sector investment over the next five years.
To balance the fiscal plan, Carney has proposed cutting the federal workforce by 10% over the coming years — a move that has drawn strong criticism from public sector employees, who cautioned that a leaner federal workforce would slow government operations.
Debate around it had been partially eclipsed by partisan drama between Carney's Liberals and the Conservative opposition, who lost a member of their caucus to the Liberals shortly after the fiscal plan was proposed. Chris d'Entremont said he defected over what he believed was Conservative leader Pierre Poilievre's negative style of politics, adding that the Liberal budget hits the priorities of his constituents.
Conservative lawmaker Matt Jeneroux later resigned from parliament the same week, emphasizing a need to spend more time with family, which fueled ongoing questions about Poilievre's leadership. Poilievre maintained his stance, stating he plans to remain as leader, focusing on affordability issues for Canadians.
The fiscal plan, which raises Canada's deficit to a projected C$78 bn ($55.3 bn; £42.47 bn), was passed thanks to crucial support from opposition MPs, including Green Party leader Elizabeth May.
Many opposition lawmakers have sharply criticised the fiscal plan — the second largest in history. The plan passed with 170 votes in favour and 168 against it.
Carney, who served as the former central banker for both Canada and the UK, has defended the budget as a generational investment to help Canada strengthen its economy.
The vote was crucial for Carney's Liberal government, which currently sits two seats short of a majority. It meant that if all 169 Liberal MPs voted in support, the budget would need the backing from either two opposition MPs or have four opposition MPs abstain.
Two NDP MPs abstained along with House Speaker Francis Scarpaleggia, who casts a vote in the event of a tie. Conservative MPs Shannon Stubbs and Matt Jeneroux — who announced earlier this month that he was resigning — also abstained.
Green Party leader Elizabeth May's support proved crucial. May told reporters she voted yes based on commitments made by Carney that he would support Canada's climate targets. Without what I heard from the Prime Minister today, I would have voted no, she said.
The Conservative Party, led by Pierre Poilievre, and the Quebec nationalist Bloc Québécois both voted against the budget, accusing Carney's government of failing to address affordability concerns. Poilievre labelled the budget a credit card budget, arguing it does little to tackle the cost-of-living crisis.
Liberal MP Nathaniel Erskine-Smith, who supported the budget, raised concerns of his own, suggesting that while the plan offered much-needed investment, it fell short of addressing Canada's housing crisis and stalled progress on climate action.
The budget proposes C$140bn of new spending over the next five years to strengthen Canada's productivity, competitiveness, and resilience. It includes money to update ports and other trade infrastructure with the goal of doubling Canadian exports to non-US markets over the next decade.
Additionally, the plan allocates direct support for businesses hurt by US tariffs on Canadian goods, with Carney's government projecting that the initiatives will attract C$1 trillion in private sector investment over the next five years.
To balance the fiscal plan, Carney has proposed cutting the federal workforce by 10% over the coming years — a move that has drawn strong criticism from public sector employees, who cautioned that a leaner federal workforce would slow government operations.
Debate around it had been partially eclipsed by partisan drama between Carney's Liberals and the Conservative opposition, who lost a member of their caucus to the Liberals shortly after the fiscal plan was proposed. Chris d'Entremont said he defected over what he believed was Conservative leader Pierre Poilievre's negative style of politics, adding that the Liberal budget hits the priorities of his constituents.
Conservative lawmaker Matt Jeneroux later resigned from parliament the same week, emphasizing a need to spend more time with family, which fueled ongoing questions about Poilievre's leadership. Poilievre maintained his stance, stating he plans to remain as leader, focusing on affordability issues for Canadians.
