Mark Carney says Canadians can expect positive developments when the federal government releases its spring economic update, signalling that Ottawa’s fiscal position may be stronger than previously forecast.
The update, to be tabled by François-Philippe Champagne, will provide revised projections on government revenues, spending, deficits and the broader economy. These mid-year statements are often viewed as mini-budgets because they can include major policy measures and new spending plans.
The Liberals’ last federal budget projected a deficit of $78.3 billion for the previous fiscal year, with deficits expected to gradually decline over the next several years. However, recent fiscal monitor data covering the first 11 months of the year showed a shortfall of $25.5 billion, raising expectations that the final deficit may come in lower than forecast.
Asked why the numbers may improve, Carney said his government has made difficult decisions and focused closely on spending control, adding that the Liberals are “good fiscal managers.”
The update comes as the government balances competing pressures: boosting defence spending, investing in major infrastructure, responding to global trade uncertainty and helping households manage rising living costs.
On Monday, Carney also announced the creation of a new $25-billion sovereign wealth fund designed to invest alongside the private sector in large national projects aimed at strengthening Canada’s long-term economy.
Recent affordability measures introduced by the government include a temporary pause on the federal fuel excise tax and enhanced support payments for lower-income households through GST-related benefits.
Opposition leader Pierre Poilievre has criticized Liberal spending, arguing deficits will eventually lead to higher costs for Canadians through inflation and debt servicing.
At the same time, higher oil prices linked to conflict in the Middle East may increase federal revenues, while stronger revised GDP figures could also improve Ottawa’s fiscal outlook.
The economic update will be closely watched by businesses, economists and households looking for signs of how the government plans to manage growth, affordability and uncertainty in the months ahead.