Canada: PM Carney Secures Budget, Sidesteps Snap Election

By Staff, Agencies

Prime Minister Mark Carney’s minority government narrowly survived a crucial confidence vote Monday, as Canadian lawmakers approved a motion to debate his first federal budget—averting the need for a second election in under a year.

The House of Commons voted 170-168 to advance study of the fiscal plan. While further votes are expected in the coming months, the slim victory signals that the budget is likely to be approved eventually.

“It’s time to work together to deliver on this plan – to protect our communities, empower Canadians with new opportunities, and build Canada strong,” Carney said on X, arguing that his spending blueprint would help fortify the economy against escalating United States tariffs.

Carney has repeatedly cast the budget as a “generational” chance to reinforce Canada’s economic resilience and to reduce reliance on trade with the US.

The proposal includes a near doubling of Canada’s deficit to 78.3 billion Canadian dollars [$55.5bn] with major outlays aimed at countering US trade measures and supporting defence and housing initiatives.

The prime minister has insisted that higher deficit spending is essential to cushion the impact of US President Donald Trump’s tariffs. While most bilateral trade remains tariff-free under an existing North American trade agreement, US levies on automobiles, steel and aluminum have struck significant sectors of the Canadian economy.

According to Carney, a former central banker, internal forecasts show that “US tariffs and the associated uncertainty will cost Canadians around 1.8% of our GDP [gross domestic product]”.

Short of a majority in the 343-seat House, the Liberals relied on opposition abstentions to avoid early elections, with polls suggesting they would likely stay in power if voters went back to the polls.

Carney won a full term in April promising to counter US protectionism, while opposition Conservatives face internal turmoil and a leader review.

The left-leaning New Democratic Party [NDP] says the plan falls short on tackling unemployment, housing, and rising living costs for Canadian families.

NDP interim leader Don Davies said the party accepted that blocking the budget would push the country back into an unwanted election cycle, explaining why two of its MPs ultimately abstained.

It was “clear that Canadians do not want an election right now … while we still face an existential threat from the Trump administration”, he said.

“Parliamentarians decided to put Canada first”, Finance Minister Francois-Philippe Champagne said.

Pre-vote polls showed most Canadians were content with Carney, with only one in five backing immediate elections.