Carney's federal budget plans billions in new spending in response to US tariff shocks

The federal budget from Canada's PM seeks to attract business investment and protect sectors hit by the ongoing trade war with the Trump administration.

Watch LiveBritish Broadcasting CorporationHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveDocumentariesHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListTo the Ends of The Earth EarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcast CategoriesRadioAudio FAQsVideoBBC MaestroLiveLive NewsLive SportDocumentariesHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveDocumentariesWeatherNewslettersWatch LiveCarney plans billions in new spending in response to US tariff shocks 15 hours agoShareSaveNadine YousifSenior Canada reporter, OttawaShareSaveBloomberg via Getty ImagesCanada's Prime Minister Mark Carney has put forward his first federal budget, which lays out an ambitious plan to transform Canada's economy and deal with the challenge of US tariffs.

Billed an "investment budget" by the government, the fiscal plan increases Canada's deficit to C$78bn ($55.3bn; £42.47bn), the second largest in history.

The spending is offset by plans to attract C$1tn of investment into Canada over the next five years, with the federal government arguing more restrained spending would eliminate "vital social programmes" and funding for Canada's future.

The budget does outline cuts, however, including slashing the size of the federal workforce by some 10% in the coming years.

The budget was presented by Canada's finance minister, François-Philippe Champagne, in the House of Commons late on Tuesday afternoon.