Prime Minister Mark Carney forewarned future challenges to Canada’s economy, which he suggested was performing “reasonably well” in a pre-budget address to the nation.
Carney warned on October 22 at the University of Ottawa that economic transformation would require “some sacrifices” and time, a message tied to the November 4 budget.
“Our government will work relentlessly to cut waste and drive efficiencies,” he claimed, “and when we have to make difficult choices.”
“We will be thoughtful, we will be transparent, we’ll be fair, we will work collaboratively with our colleagues across the aisle to build, protect, and empower Canadians.”
The upcoming budget is projected to include a “substantial” deficit, according to Government House Leader Steven MacKinnon. While specific program cuts haven’t been announced, the Liberal government states key support programs like national dental and childcare will continue.
Carney’s government plans to balance the “operating deficit” in three years by reducing “wasteful government spending,” such as initiatives to reduce red tape. He noted that federal spending has grown over 7% year-over-year for the past decade, exceeding economic growth, a trend that must change.
The Liberal government plans to separate daily spending from capital investment in future budgets. While they claim this provides a clearer picture and prioritizes major projects, the Conservatives accuse them of attempting to “bury the deficit.”
On May 18, the former central banker delayed the spring budget, promising a “comprehensive, effective, ambitious, prudent budget”, to address the impact of U.S. tariffs.
Hellbound and Down 