Prime Minister Mark Carney’s first federal budget cleared the House of Commons on Monday night after a tense final vote that avoided triggering a year end election. The budget motion passed 170 to 168 after the Green Party backed the government and four MPs abstained, including two New Democrats and two Conservatives. In a minority Parliament where budget votes are treated as confidence matters, the result gives the Liberals a narrow but critical path forward..The late backing of Green Party Leader Elizabeth May was decisive. She announced her support moments before the vote after Carney committed during question period to meeting Canada’s Paris climate agreement targets.Two NDP MPs, Gord Johns and Lori Idlout, abstained after their caucus signalled it could not support the budget but also did not want to send the country back to the polls.Two Conservative MPs also did not vote, including Shannon Stubbs, who is recovering from surgery, and Matt Jeneroux, who previously announced plans to leave politics..Budget 2025 introduces $141 billion in new spending and projects a $78.3 billion deficit for 2025-26, with federal debt expected to reach $1.35 trillion by year end.The government has described the budget as transformational and necessary to strengthen Canada’s economic resilience.Finance Minister François-Philippe Champagne said the plan is built around investment in infrastructure, innovation and defence, and argued it would help trigger private sector spending..The fiscal outlook in the budget shows deficits extending well into the next decade. Ottawa attributes the shortfalls to increased defence spending, major capital projects and industrial strategy commitments. Debt servicing costs are projected to reach $55.6 billion this year, exceeding federal health transfers.The budget also sets out $51 billion in cuts and savings over several years, largely through public service restructuring and operational reductions. The plan includes a reduction of 40,000 federal public service positions by 2029, with Ottawa expecting $13 billion in annual savings by 2028-29. Still, total federal spending will rise to $581 billion this year.One of the most significant policy shifts is a sharp reduction in temporary resident admissions beginning next year. The government says the change will relieve pressure on housing and services, while critics warn it could create labour shortages..The budget confirms cuts across public safety and environmental programs, including cancellation of the 2 Billion Trees program.With the motion now passed, budget implementation legislation will move ahead. The Senate is expected to review the package but is not expected to block it.
