Finance Minister François-Philippe Champagne arrives for a cabinet meeting on Wednesday.Justin Tang/The Canadian Press
Prime Minister Mark Carney‘s government is working toward updating its finances in a fall economic statement, Finance Minister François-Philippe Champagne said Wednesday, suggesting Ottawa will not table a federal budget this year.
Federal governments almost always release a budget early in the year. One exception was in 2020, during the pandemic, when the government didn’t table one.
The absence of a budget would leave Canadians without a clear picture of the new government’s spending plan, or how recent economic events have affected Ottawa’s bottom line.
The Liberal government held consultations on a budget ahead of the spring election campaign, but no date was ever set for its release.
Mr. Carney’s new cabinet met Wednesday for the first time since his ministers were sworn in the day before.
Mark Carney’s new cabinet: A look at the ministers who are in and out
After the meeting, Mr. Champagne was asked if he’ll be tabling a budget before the summer break. His answer provided a timeline that ruled this out.
He said the plan is for the government to deliver a Throne Speech; introduce legislation that will enact a promised income tax cut, which will take effect July 1; and then have an economic statement in the fall.
“It’s very clearly outlined. And I would say Canadians have seen the priorities that we have outlined during the campaign. Priorities are not going to be different,” he said.
The Liberal cabinet met for the first time since the federal election.
The Canadian Press
While a budget provides an outline of federal spending plans, it is not essential to the operations of government. Spending is formally approved by Parliament through a process known as the estimates, which are required to be voted on in regular cycles.
The estimates only provide a partial snapshot of spending, meaning they can’t be relied on to form a complete picture of how the government plans to spend taxpayer dollars.
The Liberal election platform outlined nearly $130-billion in new spending and tax cuts over four years, leading to higher annual deficits than had previously been projected.
The platform projected a deficit of 1.96 per cent of GDP ($62.3-billion) this fiscal year, followed by 1.83 per cent of GDP ($59.9-billion) the next year.
After Tuesday’s swearing-in ceremony for cabinet, Mr. Carney said his government would move on those promises with “urgency and determination” after being elected “with a mandate for change.”
Former parliamentary budget officer Kevin Page said there isn’t enough time left before the summer recess for the government to produce a full budget with new policy announcements, but he said the Liberals should at least produce a fiscal update before the summer that shows where things currently stand. He said campaign platforms didn’t fully account for the various U.S. tariff moves that have disrupted the Canadian economy.
“They are out of date,” said Mr. Page, who is now president and chief executive officer of the University of Ottawa’s Institute of Fiscal Studies and Democracy. “Parliament will be asked to approve spending authorities without a reasonable planning framework.”
He predicted the government will face pressure to present a full budget in the fall, rather than a more limited economic statement.
Conservative Leader Pierre Poilievre said it is unacceptable that the Liberals have no immediate plan for tabling a budget.
“Parliament has already been shut down for nearly half a year. Now, in the face of serious economic threats, the Liberals don’t intend to present a budget this year. There is no roadmap forward, no economic vision, and no willingness to lead,” he said in a post on X.
At Wednesday’s cabinet meeting, ministers also discussed the government’s plans to support energy projects.
Energy and Natural Resources Minister Tim Hodgson, the pro-business face of Mr. Carney’s new cabinet, said he plans to visit Western Canada “very soon” in an effort to work with provinces to build new projects.
“We look forward to building, and I look forward to digging in. We have a lot to do,” Mr. Hodgson said in brief remarks to reporters. He said he looks forward to working with provincial, territorial and Indigenous and industrial partners to build a more prosperous country.
Minister of Energy and Natural Resources Tim Hodgson on Wednesday.Justin Tang/The Canadian Press
But just a few minutes later, Canadian Identity Minister Steven Guilbeault, a career environmentalist who is often criticized in Alberta as an obstacle to energy sector growth, questioned whether Canada needs more pipelines.
He said the recently launched Trans Mountain pipeline still has excess capacity.
“So I think before we start talking about building an entire new pipeline, maybe we should maximize the use of existing infrastructure,” he said, before pointing to statistics showing that global demand for oil could peak before the end of the decade.
Mr. Guilbeault’s comments hint at the potential conflict inside the Liberal government as it attempts to strike a more open stand toward new oil and gas projects while also delivering on Canada’s targets to reduce greenhouse gas emissions.
Opinion: An old Liberal front bench bolted to a new Carney mission
In addition to Mr. Carney’s career as a central banker and private sector leader he was also the United Nations Special Envoy for Climate Action and Finance.
Throughout the election campaign, he maintained that it is possible to deliver on climate change while also becoming an energy superpower in both traditional and clean energy.
His government’s initial actions and outreach to Western Canada will quickly put that pledge to a test at a time when Alberta Premier Danielle Smith is demanding major policy changes from Ottawa on the energy front.
Buckley Belanger, the new Secretary of State for rural development who represents a northern Saskatchewan riding, said Mr. Carney is bringing in positive change for the energy sector.
“He is reaching out to a lot of the provinces in a partnership mode, and I think it’s an exciting time for our oil and gas sector here in the province,” he said.
Canadian business leaders reacted positively Tuesday to the makeup of Mr. Carney’s postelection cabinet, particularly the addition of Mr. Hodgson, who is well-known on Bay Street.
Mr. Hodgson was an adviser to Mr. Carney when he was the governor of the Bank of Canada. He is also a former Goldman Sachs investment banker and former chair of Ontario power provider Hydro One Ltd.
The new cabinet committee structure shows Mr. Hodgson will play a leadership role inside cabinet.
He is one of 12 members of the core priorities, planning and strategy committee. He is also the chair of a new committee called Build Canada, which is described as having responsibility for issues related to housing, infrastructure investments, climate action, Indigenous economic prosperity and other issues.
The new cabinet comprises 28 ministers in addition to Mr. Carney and 10 secretaries of state. Mr. Carney highlighted that half of the main group and nine of the 10 secretaries of state are new to cabinet.
But the makeup of the cabinet committees shows Mr. Carney is counting on veteran ministers to play leadership roles.
Prime Minister Mark Carney unveiled a major cabinet shuffle on Tuesday.
The Associated Press
The title and description of the committees also provide a window into the new government’s policy priorities.
Dominic LeBlanc, who has responsibilities for Canada-U.S. Trade, intergovernmental affairs and “One Canadian Economy,” will chair the operations and parliamentary affairs committee.
Mr. Carney will chair the National Security Council committee, with Foreign Affairs Minister Anita Anand as vice-chair.
Mr. Champagne will lead a cabinet committee on government transformation and government efficiency.
Defence Minister David McGuinty will chair a committee called secure and sovereign Canada and Mr. Guilbeault will chair a committee called quality of life and well-being.
New Secretary of State Wayne Long, a New Brunswick MP who was publicly critical of former prime minister Justin Trudeau, said he already sees positive change under Mr. Carney.
“I think we’re going to see our government run like a corporation, which I think is long overdue,” he said.