Ottawa – The Canadian government, led by Prime Minister Mark Carney, narrowly survived a no-confidence vote on Monday evening. Parliament approved the budget proposed by the Prime Minister aimed at revitalizing the Canadian economy, which has been strained by U.S. tariffs.
Support from an opposition party, eager to avoid triggering an early election, coupled with abstentions from four other members of parliament, allowed the budget to pass and ensured Carney remains in office.
Following the vote, Prime Minister Carney stated, “We must now work together to implement this plan, to protect our communities, provide new opportunities for Canadians, and build a stronger Canada.”
The approved budget nearly doubles the deficit for the fiscal year 2025-2026, projected to reach $78.3 billion CAD (approximately $55.5 billion USD). Mark Carney, a former banker, views the budget, which focuses on launching major infrastructure projects, as a ‘bold’ response to global economic turmoil and pressures emanating from the United States.
The imposition of U.S. tariffs on Canada has contributed to rising unemployment and placed pressure on businesses in vital sectors such as automotive, aluminum, and steel. Prior to the vote, the Prime Minister addressed Parliament, stating he had ‘good news,’ highlighting job opportunities and a decreasing inflation rate.
The Consumer Price Index, published by Statistics Canada on the same day, indicated a drop in inflation to 2.2% in October. However, U.S. tariffs and the resulting uncertainty ‘will cost Canadians approximately 1.8% of GDP,’ according to Carney’s statements last week. The government hopes the new budget will offset these losses.
