November 4, 2025
RED FM News Desk
Prime Minister Mark Carney’s first federal budget is being described by the government as a generational plan to strengthen Canada’s infrastructure and productivity during a time of global uncertainty and trade disruption.
The main question now is whether Carney’s decision to run a large deficit while cutting public service jobs will gain support from opposition parties or lead to another federal election later this year.
Finance Minister François-Philippe Champagne said the budget responds to an era of rapid and unprecedented change. He explained that Canada needs to make major, long-term investments to face current challenges and prepare for the future.
The 2025 budget includes $141.4 billion in new spending over five years, partly offset by $51.7 billion in planned savings. The government expects a deficit of $78.3 billion this year.
Key areas of investment include:
- $115 billion for infrastructure projects
- $30 billion for defence and national security
- $25 billion for federal housing initiatives
The budget also includes $110 billion over five years for programs aimed at improving productivity and competitiveness, with the goal of attracting $500 billion in private sector investment by 2030.
According to the budget, Canada is at a “crossroads.” The government argues that recent global shocks require more than short-term measures and call for bold, long-term investments to secure future prosperity.
The projected deficit of $78.3 billion is significantly higher than the $42.2 billion deficit forecast in the final fiscal update from December 2024 under the previous Liberal government.
Carney’s fiscal plan comes amid global uncertainty and a weak economic outlook, raising questions about whether his approach will set the stage for future growth or deepen the country’s financial challenges.
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