Abstentions from a small number of opposition parties allowed Carney and the minority Liberal Party to push through a deficit-increasing budget aimed at countering U.S. tariffs.
Published November 18, 2025
Prime Minister Mark Carney’s minority government narrowly survived Monday’s vote of confidence, but Canadian MPs backed a motion to open debate on his first federal budget, averting the possibility of a second election in less than a year.
The House of Representatives voted 170-168 to move forward with consideration of the fiscal plan. Further votes are expected in the coming months, but the narrow victory means the budget is likely to be approved in the end.
Tonight, the House of Representatives voted to pass the 2025 Budget.
Now is the time to work together to implement this plan to protect our communities, create new opportunities for Canadians, and strengthen Canada.
— Mark Carney (@MarkJCarney) November 18, 2025
“Now is the time to work together to deliver on this plan to protect our communities, create new opportunities for Canadians and strengthen Canada,” Carney said at X, arguing that his spending blueprint will help strengthen the economy against escalating U.S. tariffs.
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Mr. Carney has repeatedly characterized the budget as a “generational” opportunity to strengthen Canada’s economic resilience and reduce its dependence on trade with the United States.
The proposal would nearly double Canada’s deficit to C$78.3 billion ($55.5 billion) with major spending aimed at countering U.S. trade policies and supporting defense and housing policies. The prime minister has argued that increasing deficit spending is essential to cushioning the impact of President Donald Trump’s tariffs. Although most bilateral trade remains tariff-free under the existing North American Trade Agreement, U.S. tariffs on automobiles, steel and aluminum have hit key sectors of Canada’s economy.
Carney, a former central bank governor, said internal projections indicate that “U.S. tariffs and the associated uncertainty will cost Canadians about 1.8 per cent of GDP.” [gross domestic product]”.
The Liberal Party was several seats short of a majority in the 343-member House of Commons, and relied on abstentions from several opposition members who were reluctant to call early elections. Recent polls suggest that Carney’s Liberals will remain in power if Canadians are sent back to the polls.
Mr. Carney was elected to an expiring term in April after campaigning on the promise of challenging Washington’s protectionist direction. Meanwhile, the official opposition Conservative Party has been grappling with internal divisions since its defeat, with leader Pierre Poièvre due to formally review his performance early next year.
Mr. Poièvre harshly criticized the government’s spending plans, dubbing the fiscal policy a “credit card budget.”
The left-leaning New Democratic Party (NDP) also voiced concerns, saying the proposal fails to adequately address unemployment, the housing crisis and cost-of-living pressures facing many Canadian families.
Interim NDP Leader Don Davis said his party accepted that blocking the budget would send the country back into an unwanted election cycle, explaining why two MPs ultimately abstained.
“It’s clear Canadians don’t want an election at this time…We still face an existential threat from the Trump administration,” he said.
“Parliamentarians have decided to put Canada first,” said Finance Minister François-Philippe Champagne.
Opinion polls before Monday’s vote suggested Canadians broadly share this view. A November survey by the analytics firm Leger found that one in five respondents supported an immediate election, and half said they were satisfied with Carney’s leadership.
