Canada Set to Add $119 Billion to Deficits as Growth Stalls

Prime Minister Mark Carney, right, and Finance Minister Francois-Philippe Champagne speak to the media before tabling the federal budget in Ottawa on Nov. 4. — Prime Minister Mark Carney, right, and Finance Minister Francois-Philippe Champagne speak to the media before tabling the federal budget in Ottawa on Nov. 4.
Photographer: David Kawai/Bloomberg

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By Brian Platt and Erik Hertzberg

November 4, 2025 at 9:03 PM UTC

Updated on

November 4, 2025 at 9:23 PM UTC

Canada is set to rack up larger deficits under Mark Carney, who used his first budget as prime minister to inject tens of billions of dollars into defense, housing and major projects intended to help the country increase exports to overseas markets.

Carney and Finance Minister François-Philippe Champagne unveiled a budget on Tuesday that foresees an extra C$167.3 billion ($118.7 billion) in total budget deficits over five years, compared with the last fiscal projection under Justin Trudeau.