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; £42.47 billion), was passed thanks to crucial support from opposition MPs, including Green Party leader Elizabeth May.
Many opposition lawmakers have sharply criticized the 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.
Elizabeth May's support was deemed essential as she voted yes based on commitments made by Carney to support Canada's climate targets. Without what I heard from the Prime Minister today, I would have voted no, she said.
In contrast, the Conservative Party, led by Pierre Poilievre, and the Quebec nationalist Bloc Québécois 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.
Supporter Liberal MP Nathaniel Erskine-Smith expressed 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 funding to update ports and trade infrastructure aimed at doubling Canadian exports in the next decade.
Furthermore, direct support for businesses affected by US tariffs on Canadian goods is planned, with the government projecting the initiatives will attract C$1 trillion in private sector investment over five years.
Carney has also proposed cutting the federal workforce by 10% to balance the fiscal plan, prompting strong criticism from public sector employees who warn this may slow government operations.
The debate surrounding the budget was somewhat overshadowed by recent political drama, including defections from the Conservative Party. Chris d'Entremont cited the Conservative leader’s negative style as his reason for joining the Liberals, stating the Liberal budget aligns with the priorities of his constituents.
Amidst these developments, Poilievre affirmed his commitment to leading the Conservatives, promising to advocate for an affordable Canada.
