Canadian Prime Minister Mark Carney presented a "historic" budget focused on infrastructure and defense, in the context of tense relations with the USA.

Canadian Prime Minister Mark Carney presented a budget focused on major infrastructure projects and a significant increase in military spending, forecasting a deficit of 78.8 billion Canadian dollars for 2025-2026, nearly double that of the previous year. Finance Minister Francois-Philippe Champagne justified this increase in the deficit, emphasizing that the budget represents an investment plan, not just expenditures. The Canadian government is facing economic challenges due to U.S. trade policies that affect essential sectors.

Ottawa intends to save 60 billion dollars over five years from the public apparatus, reinvesting in infrastructure and defense. Canada will spend 115 billion CAD on infrastructure and 82 billion CAD on defense, aiming to align with NATO objectives. The budget must pass a confidence vote, and a negative outcome could lead to early elections. The vote is scheduled for mid-November.