Government House Leader Steven MacKinnon is warning Canadians to brace for difficult decisions as Prime Minister Mark Carney’s first budget heads to Parliament in October — one that he says will balance spending restraint with key investments.
“The government has run a large deficit since the pandemic, when we were there to support Canadians, and now we have some choices to make so that we can get our finances in control,” MacKinnon told CTV Question Period.
Carney has described the budget as a mix of “austerity” and “investment,” with a focus on eliminating waste and duplication in federal spending to make room for new priorities like defence and tariff supports. Finance Minister François-Philippe Champagne and Treasury Board President Shafqat Ali have asked ministers to find up to 15 per cent in operational savings over three years.
Despite union concerns about service cuts, MacKinnon says the government is not looking to reduce public service head count, but to “assess the appropriate role for the federal government” across different sectors. The size of the public service has grown by more than 100,000 workers since 2015, though numbers have declined slightly since last year.
At the same time, Carney is under pressure to maintain election promises to protect programs like childcare, dental care, and pharmacare while still meeting his pledge to save $15 billion annually by 2028.
The fall sitting will also test the government’s climate agenda, as Ottawa develops a new competitiveness strategy and faces calls to drop its oil and gas emissions cap. Alberta Premier Danielle Smith said after meeting Carney that the prime minister is showing “pragmatism” on the issue, suggesting Ottawa may consider alternatives to rigid interim targets.
MacKinnon wouldn’t confirm whether Canada will keep its 2030 and 2035 emissions reduction targets, saying Environment Minister Julie Dabrusin will provide updates “at the appropriate times.”
The upcoming budget is shaping up to be a defining moment for the Carney government — a chance to convince Canadians it can rein in spending without derailing growth, maintain climate credibility, and deliver on promises that helped win the last election.