Ottawa, April 20, 2025 — Liberal leader Mark Carney has set the stage for a high-stakes fiscal debate by unveiling a bold platform promising $130 billion in new spending. The plan, stretching over four years, outlines significant investments in defense, healthcare, infrastructure, and climate action, but it also confirms federal deficits will persist until at least 2029.
Carney’s pitch aims to modernize the Canadian economy while strengthening national security. He pledged to meet NATO’s target of 2% defense spending by 2030. This includes funding for Arctic operations, advanced drone and submarine capabilities, and investments in AI and quantum computing to bolster cyber-defense. He called this an essential step to “Trump-proof” Canada amid global uncertainties.
The proposal also introduces capital budgeting reforms, allowing infrastructure investments to be separated from daily operating costs. Carney argued this would lead to a balanced operating budget in three years, without deep cuts to essential services. His platform also proposes targeted tax relief for middle-class families and incentives to help small businesses grow in a turbulent global trade environment.
Criticism was swift. The NDP warned the capital-operating budget split could mask service cuts, estimating nearly $43 billion in reductions by 2028. Conservative leaders questioned the practicality of running prolonged deficits without a clear debt reduction plan.
Carney remained confident, describing the strategy as pragmatic and forward-looking. He framed the platform as a decisive break from past incrementalism and a roadmap for long-term resilience.
