Canada's Parliament Approves Mark Carney's First Budget Amid Controversy

Tue Nov 18 2025 06:33:08 GMT+0200 (Eastern European Standard Time)

Prime Minister Mark Carney's federal budget gains narrow approval, raising the deficit but aiming for long-term investments. Opposition remains critical as costs rise.

In a closely contested vote, Canada's parliament has narrowly approved Prime Minister Mark Carney's first federal budget, which raises the deficit to a projected C$78 billion. The budget faced fierce opposition criticism but received crucial backing from some opposition MPs, including Green Party leader Elizabeth May. While Carney defends the budget as a necessary investment to bolster the economy, critics label it inadequate in addressing pressing issues like the cost of living and housing crises. This approval allows Carney's minority government to avoid an early election, but the political landscape remains tense with ongoing opposition demand for fiscal responsibility.

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 billion (approximately $55.3 billion), was passed thanks to crucial support from opposition MPs, including Green Party leader Elizabeth May.

Many opposition lawmakers have sharply criticized this fiscal plan—the second largest in history. The plan passed with 170 votes in favor 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 also abstained, with Jeneroux recently announcing his resignation.

Green Party leader Elizabeth May's support was essential. She told reporters she voted yes based on commitments made by Carney regarding Canada's climate targets. Without what I heard from the Prime Minister today, I would have voted no, she stated.

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 labeled 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 that while the plan offered much-needed investment, it fell short in addressing Canada's housing crisis and stalled progress on climate action.

The budget proposes C$140 billion of new spending over the next five years to strengthen Canada's productivity, competitiveness, and resilience. It includes funds 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 these 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 caution that a leaner federal workforce would slow government operations.

The budget was first put forward in early November and has already survived two votes.

Debate around it had been partially eclipsed by partisan drama between Carney's Liberals and the Conservative opposition, who recently lost a member to the Liberals shortly after the fiscal plan was proposed.

The departures from the Conservative party raise further questions about Poilievre's leadership, but he insists he plans to stay on as leader.