Prime Minister Mark Carney signaled on Saturday that he’s prepared to take Canada to the polls if opposition parties refuse to back his first federal budget, set to be unveiled Tuesday. Speaking to reporters after wrapping up the APEC Summit in Gyeongju, South Korea, Carney said he’s “always prepared to stand up for the right thing,” underscoring his determination to defend his government’s economic plan even at the risk of triggering an election.
With the Liberals holding a minority and just three seats short of a majority, the budget represents both a crucial confidence vote and the first major test of Carney’s leadership. While final details are still being ironed out, insiders suggest the budget will attempt to balance new “generational investments” with a commitment to gradually restore fiscal discipline.
Tensions on Parliament Hill have been mounting for weeks. Government House Leader Steven MacKinnon has been in talks with opposition parties, saying the Liberals are “prepared to negotiate on details but not on principles.” He accused Conservative Leader Pierre Poilievre of “trying to cause a Christmas election.” The Conservatives, meanwhile, charge that the Liberals are intentionally pushing a “costly budget” they know the Opposition can’t support.
Conservative House Leader Andrew Scheer accused the government of using the budget as a political weapon, saying, “It’s becoming clear they’re using their costly budget as an excuse for costly elections.” The Conservatives have demanded that the deficit be capped at $42 billion, while the Bloc Québécois has made 18 requests, including a non-negotiable 10 per cent boost to Old Age Security.
Carney sidestepped questions on whether he’s secured enough support to pass the budget but said he’s “100 per cent confident it’s the right one for the country at this moment.” He added, “This is not a game. This is a critical moment in the global economy.”
The coming budget is expected to combine targeted investments with measures to trim spending across departments. Finance Minister François-Philippe Champagne and Treasury Board President Shafqat Ali have directed ministers to identify savings of 7.5 per cent for 2026–27, increasing to 15 per cent by 2028–29.
The Parliamentary Budget Officer recently warned that Canada’s finances are “at the precipice,” projecting a deficit of $68.5 billion this year and a rising debt-to-GDP ratio. Despite that, Carney insists his plan will reshape Canada’s economy through responsible spending and innovation.
As he returns from Asia, the stakes for Carney couldn’t be higher: pass his first budget — or face voters in what could become Canada’s most consequential election in years.