Canada's Mark Carney promises 'bold' first federal budget

The prime minister has promised "generational investments" and warned of "sacrifices" as he seeks to transform an economy upended by US tariffs.

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Carney has said the spending plan will see both significant cuts and "generational investments" to strengthen the economy and reduce the country's reliance on US trade.

The plan is also expected to lay out how Canada will pay for billions of dollars in defence spending to fulfil the new Nato commitment to spend 5% of GDP on defence by 2035.

Analysts have suggested the federal deficit could exceed C$70bn ($50bn; £38bn), up from $51.7bn last year.

The fiscal plan is seen as a major test for Carney, a former central banker for Canada and the UK who has promised to make Canada's economy the strongest in the G7 group of wealthy nations.