2025 Canadian federal budget

In the 2025 Canadian federal election, the incumbent Liberal party, led by Prime Minister Mark Carney, won a plurality of seats but failed to win enough seats to gain a parliamentary majority, continuing their six-year tenure as a minority government and marking the third consecutive term of a Liberal minority government. Carney, described as fiscally conservative, announced an increase in defence spending, a reduction in the public service, and tax cuts, among others. On September 17, Champagne confirmed November 4 as the date of the budget. Carney gave a pre-budget speech at the University of Ottawa in October, stating that "we won’t transform our economy easily or in a few months — it will take some sacrifices and some time". This is the first budget to occur under the 2025 United States trade war with Canada and Mexico, and the first under a new capital budgeting framework. Operational spending will be distinguished from capital expenditures, and the budgeting cycle will be revised with a budget tabled in autumn, and an economic statement released in the spring. The budget also used British English rather than Canadian English. == Measures ==

• Decreases the size of the civil service by about 40,000 positions, with funding previously used for the civil service to go towards "nation-building" projects. Additionally, the government aims to be more efficient by spending less. • Reaching the 2% of GDP NATO target for military spending by 2026, with an aim for 5% by 2035. • Boosts funding to broadcasters, including boosting CBC/Radio-Canada funding by $150million. Funding is provided to investigate Canada's potential participation in the Eurovision Song Contest. • The budget allocates $50 million to establish Inuit Nunangat University in Nunavut. • The budget cuts funding for the "2 billion trees" program and the Canada Greener Homes Grant. ==Reactions==

Conservative Party leader Pierre Poilievre strongly criticized the budget, stating that the party would not vote for it. The Bloc Québécois committed to not supporting it, while Green Party leader Elizabeth May voted in support despite initially stating that she was against the budget. NDP interim leader Don Davies stated NDP MPs would consider voting in its favour, or abstaining. Following the budget bill's tabling, Conservative MP Chris d'Entremont left the party and joined the Liberal caucus, making the government just two votes shy of a majority. Vote On November 17, the budget passed, with all Liberals (except the Speaker) and May voting in favour. Conservative MP Matt Jeneroux, who announced his intention to resign as an MP following the budget's tabling, voted to abstain. 2 NDP MPs also voted to abstain, and another Conservative was absent, with all other Conservatives and NDP MPs voting against the budget, along with the Bloc. Public opinion Polling conducted by Abacus Data following that budget's release found that 52% of Canadians believed the budget was a step in the right direction compared to 48% who believed it was a step in the wrong direction. Abacus Data and Kolosowski Strategies measured support for individual budget measures, finding majority support for "Buy Canadian" procurement, reduced temporary resident numbers, increased military spending and reductions in the civil service, while finding majority opposition to the deficit, increases to the industrial carbon tax and elimination of the luxury tax. == Legislative history ==