(MENAFN- Baystreet)
Canadian Prime Minister Mark Carney has pledged $90 billion of new spending in his government's first budget.
The 2025 federal budget outlines $141 billion of new spending, offset by $51.2 billion in savings, amounting to a total net new spend of $89.7 billion.
In all, the budget commits to spending $280 billion over five years on capital investments in new infrastructure, defence, and housing. Much of that money was previously announced.
Due to the new spending, the federal government in Ottawa's deficit is projected to reach $78.3 billion in the current 2025-26 fiscal year, nearly double the $42.2 billion forecast earlier.
In 2026-27 the deficit is projected to be $65.4 billion, and the budget forecasts the deficit will continue to decline over the next three years, dropping to $56.6 billion by 2029-30.
The federal spending includes $110 billion for regional economic development initiatives, and
$81.8 billion allocated to Canada's defence and security.
Prime Minister Carney has committed Canada to reaching NATO's target of 2% of GDP spent on national defence.
On the housing front, Carney's government pledged to“supercharge” homebuilding across Canada, allotting $13 billion over five years for the“Build Canada Homes” plan.
The Liberal government's budget also promises $5 billion for a new trade diversification corridor fund, meant to strengthen supply chains and diversify Canada's global trade relationships.
To help offset the cost of the new spending, the budget details plans to spend less on government operations, which likely means cuts to the federal civil service.
Cabinet ministers in Ottawa were told earlier this year to find up to 15% operational savings in their federal departments over the next three years.

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