Ottawa to table budget on Nov. 4, Finance Minister says

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Prime Minister Mark Carney’s government will table a budget on Nov. 4, offering Canadians the first glimpse into the state of federal finances since nearly a year ago.

Finance Minister François-Philippe Champagne, who previously suggested the budget would be presented in October, announced the date on social media on Tuesday, and later told reporters that the spending plan would be a “generational investment in Canada.”

“At a time where our largest trading partner neighbour is turning its back on Canada, we have to make significant investments to protect our workers, protect our industries,” Mr. Champagne said, adding that the government needs to ensure Canada is resilient in what he called a new world economic order.

Mr. Carney has suggested that the coming budget would be one of austerity and investment. He has promised to take a different approach to federal finances than his predecessor, while also significantly increasing spending on economic priorities.

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To do so, the federal government has pledged to make spending cuts to its day-to-day operations while expanding investments in defence, infrastructure and housing.

Mr. Carney acknowledged on Sunday that the budget will show a larger deficit than last year, given the new spending and tax cut commitments the government has made.

He told reporters that, in part, the tariff war and the resulting economic shocks are making for a larger deficit. “Secondly, you have the response of Canada to that, which is very clear, we want to protect our industries and workers in the most effective sectors,” he said.

In June, the Parliamentary Budget Officer forecasted the federal deficit for the 2024-25 will come in at $46-billion.

Since winning the federal election, Mr. Carney has passed legislation to cut income taxes, promised to meet the new NATO defence spending target, announced supports for tariff-hit sectors and allocated billions of dollars to a new housing agency.

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Those new expenses are expected to drive up the deficit, even as the government undergoes a spending review.

But the federal government is planning to present the budgetary balance differently this year, separating the government’s operating and capital expenditures.

The new accounting method is part of Mr. Carney’s pledge to balance the operating budget over three years, while running deficits on capital expenditures.

Mr. Champagne said on Tuesday that this distinction will be “very clear” in the budget.

“We’re going to be presenting to Canadians what we call the operational spend and the capital investment. And to make it simple: Canadians understand when you buy a house, you invest, when you go to the grocery, you spend,” he said.

Mr. Carney’s government was initially planning to table only a fall economic statement this year, but changed its plans to instead present a full budget after significant backlash. Federal budgets are usually tabled in the spring, but this year it was pushed because of a short spring session after the general election.

During an appearance before a House of Commons committee earlier on Tuesday, the interim Parliamentary Budget Officer said he would welcome a federal budget to clarify government spending.

“There are decisions that have been taken by the government already with respect to expenditures, but there’s no budget. There’s no clarity. No structure,” Jason Jacques told the committee on government operations and estimates.

Mr. Jacques said the government faces a daunting challenge in finding $25-billion in savings over three years, as requested by the Prime Minister’s Office.

“It doesn’t mean it can’t be done. It just means that, to the best of my knowledge, it is a significant undertaking” he said. “I think the public service is certainly up to the challenge.”

Conservative Leader Pierre Poilievre accused the government on Tuesday of ballooning the country’s deficit and criticized the timing of the budget.

“It suggests that the Liberal government has no idea what it’s doing when it introduces a budget two thirds (of the year) after the fiscal year is done,” Mr. Poilievre told reporters.

With a report from Stephanie Levitz