On Wednesday, Canadian Prime Minister Mark Carney announced his government’s first budget, claiming that it will reduce economic and security reliance on the US. He also added that this budget will minimize wasteful spending, throwing shade at the Donald Trump‘s administration.
During his announcement, Careny, who was elected in April, insisted that his government’s new budget will focus on big investments. He plans on protecting the Canadian economy from a crisis he deems brought by a newly protectionist US. During an address to a group of university students, the Canadian PM said, “The decades-long process of an ever-closer economic relationship between the Canadian and U.S. economies is over.” He added, “Many of our former strengths — based on close ties to America — have become our vulnerabilities.”
Mark Carney delivered a very mediocre national address Wednesday evening ahead of the Nov. 4 budget. pic.twitter.com/JLAipyEqgv
— Beautifulcanada1 (@BeautifulCana1) October 23, 2025
Carney said that the diversification he intends will bring in an additional C$300 billion, after the U.S. tariffs significantly impact Canada’s steel, aluminum, and auto sectors. He pledged to double Canada’s non-US exports over the next 10 years. He also pledged a massive scale-up in defense spending and housing infrastructure in the country.
His government has asked all ministries to minimize spending after it lost revenue due to tax cuts while trying to strike a tariff deal with Donald Trump. “When we have to make difficult choices, we will be thoughtful, transparent, and fair,” he said, emphasizing that his budget will drive efficiency at the same time while cutting wasteful expenditures.
BREAKING
Mark Carney is preparing Canadians for SERVICE CUTS in his address to the nation
“we will have to do less of some of the things we want to do…
so we can do more of what we must do”
NO TIMELINE TO BALANCE CAPITAL BUDGET pic.twitter.com/Vdy4HvMki5
— Tablesalt 🇨🇦🇺🇸 (@Tablesalt13) October 23, 2025
Following his announcement, experts predicted that Mark Carney‘s government’s fiscal deficit for the year 2025.26 will be between C$70 billion and C$100 billion. It is a massive jump from the forecasted C$43 billion for the fiscal year that ended in March. Mark Carney also noted that his budget will include a climate strategy, while balancing the operating budget in three years.
However, the Canadian Prime Minister could face a challenge while passing his budget as he would need approvals from his minority government and some opposition as well. “We won’t play games. We won’t waste time. And we won’t hold back. We will do what it takes,” he said on Wednesday, showing his willingness to pass the new budget.
