(MENAFN) Canada’s parliament narrowly passed Prime Minister Mark Carney’s first federal budget, allowing his minority Liberal government to avoid an early election. The budget passed with 170 votes in favour and 168 against, thanks in part to support from Green Party leader Elizabeth May and a few opposition MPs who abstained.

The fiscal plan, the second largest in Canadian history, raises the deficit to a projected C$78 billion ($55.3 billion; £42.5 billion) and proposes C$140 billion in new spending over five years. It includes investments to strengthen productivity, trade infrastructure, and support businesses affected by US tariffs, with an aim to attract C$1 trillion in private sector investment. The government also plans to reduce the federal workforce by 10% to help balance the budget.

Carney defended the plan as a “generational investment” to bolster the economy, while opposition parties criticized it as a “credit card budget” that fails to address affordability concerns.

The vote was pivotal, as the Liberal government sits two seats short of a majority. Defections and abstentions, including from Conservative MPs Chris d’Entremont and Matt Jeneroux, helped secure passage. Elizabeth May’s backing was contingent on commitments from Carney to support Canada’s climate targets.

Despite surviving the vote, debate continues over the budget’s impact on housing, climate action, and government efficiency, with criticism from both opposition parties and some Liberal MPs.

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