Canadian Prime Minister Mark Carney has introduced his first federal budget - a blueprint for how he plans to deliver on his promise to make Canada's economy the strongest in the G7.
The ambitious plan, seen as a key test of the new leader and former central banker, serves not only as a political document but also as a spending blueprint. It points to a period of significant change for Canada, particularly regarding its relationship with the US.
In this context, Finance Minister François-Philippe Champagne announced that Canada faces economic headwinds and the need for strong, strategic responses. Here are six key takeaways from the budget:

'Sacrifices' vs 'Generational Investments'

The budget proposes spending that could increase Canada's deficit to C$78.3 billion (£42.6 billion), with a total outlay of C$280 billion. This plan aims to enhance Canada's global competitiveness by funding highways, ports, digital corridors, and more, while warning of necessary public sector job cuts.

From Trade to Eurovision: A Global Shift

Given historical trade reliance on the US, the budget aims to double non-US exports over the next decade, providing support for Canadian businesses exploring new markets in Europe and Asia.

Making Canada a 'Clean Energy Superpower'

The government plans to make Canada a leading player in clean energy, balancing oil production with climate commitments through investments in low-emission projects and carbon capture technologies.

Sovereignty through Defence - and Space Launch

To address geopolitical threats, the budget pledges C$81.8 billion in defence spending over five years, with additional investments to develop Canadian capabilities in space.

Undoing the Trudeau Era

Carney's budget reverses several policies from the previous administration, including cuts to immigration targets and the consumer carbon tax.

Cushioning Canada from Trade Shocks

In response to trade tensions, the budget allocates C$5 billion to support affected sectors and proposes a C$10 billion loan facility for businesses facing tariff-related challenges.