Prime Minister Mark Carney is preparing to present his government’s first federal budget on Tuesday, cautioning Canadians to brace for “sacrifices” as he works to reshape an economy strained by US President Donald Trump’s tariffs.
Carney said the upcoming budget would combine deep spending cuts with what he called “generational investments,” aimed at rebuilding economic strength and reducing Canada’s dependency on trade with the United States.
A major focus of the budget will be on financing the government’s commitment to increase defence spending to 5% of GDP by 2035, in line with the new NATO pledge. Analysts predict the federal deficit could surpass C$70 billion ($50 billion; £38 billion), up from $51.7 billion last year.
For Carney, a former central banker in both Canada and the UK, the budget represents a defining moment. He has repeatedly pledged to position Canada as the strongest economy among the G7 nations. “We used to take big, bold risks in this country. It is time to swing for the fences again,” he said in a speech ahead of the budget.
Given Canada’s heavy reliance on trade with the US, the nation remains vulnerable to tariff impacts. Carney has set an ambitious target to double Canada’s non-US exports within the next decade, signaling a strategic pivot toward global markets.
Also Read:
Marjanae Truesdale: Transforming Love through Awareness and Spiritual Intuition
Professor Paul Robert Vogt: A Global Mission to Transform Heart Surgery
