(MENAFN) Canada has announced a sweeping CAN$141 billion (US$121 billion) budget aimed at mitigating the effects of US protectionist measures and bolstering the national economy, according to official statements.

Prime Minister Mark Carney said the plan is designed to support workers affected by American tariffs and to discourage businesses from shifting operations south of the border. He described it as containing several “bold” initiatives if approved by Parliament.

The proposal faces a difficult road ahead, as the governing Liberal Party holds a minority and will require backing from opposition lawmakers to pass.

The budget allocates CAN$141 billion in new spending, partially balanced by CAN$51 billion in cuts and savings. This includes eliminating about 40,000 public-sector positions while diverting funds toward large infrastructure and housing projects intended to stimulate job growth.

Defense expenditures would increase to CAN$81 billion over the next five years, while the government aims to accelerate CAN$500 billion in private investment in sectors such as mining, nuclear energy, and liquefied natural gas. It also proposes a CAN$2.7 billion cut to foreign aid over four years and a new requirement for refugees to help cover their medical expenses.

“The rules-based international order and the trading system that powered Canada’s prosperity for decades are being reshaped – threatening our sovereignty, our prosperity, and our values,” said Finance Minister Philippe Champagne.

Government officials emphasized that the budget represents a decisive response to mounting economic challenges.

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