Federal government to table first budget under Carney in October: finance minister

Federal Finance Minister François-Philippe Champagne discusses the latest move in the ongoing trade war.

Finance Minister Francois-Philippe Champagne says the federal government will table a budget – the first under Prime Minister Mark Carney – in October, describing it as an “ambitious plan to Canadians” amid U.S. tariffs and global economic uncertainty.

“This is rethinking Canada fit for the 21st century, at a time where our neighbour and friend decides to have a very different trade policy,” Champagne said in an interview with CTV News Channel on Friday. “That is a moment for us to do more for ourselves.”

Champagne launched consultations for the budget in July that will run until the end of August.

The upcoming federal budget also comes at a time when Carney has faced questions over how he will reach his election promise to balance operational spending by 2028, despite recent spending pledges including an additional $9.3 billion for defence this fiscal year to hit NATO’s two per cent of GDP target. Carney has also repeatedly pledged to “spend less, invest more.”

In July, Champagne, along with Treasury Board President Shafqat Ali, issued letters to cabinet ministers asking them to present plans by the end of August to find day-to-day operational savings.

Ministers must find 7.5 per cent savings for the 2026-27 fiscal year, which begins next April 1, followed by 10 per cent in 2027-28 and 15 per cent in 2028-29.

“The fact that we have a budget in October is helpful because by that time, we have more certainty,” Champagne told CTV News. “We are able to provide a better picture to Canadians and I think what people want to have is that very rigorous approach to budgeting, and that’s what we’re going to propose.”

The spending review – and aim to find $25 billion in savings over three years – has prompted public service unions to voice concerns over potential job cuts.

But the federal government has maintained it intends to reduce the size of the public service through attrition. During the federal election campaign, Carney also promised to cap and not cut the public service.

The Conservatives had previously urged the Liberal government to present a budget before the House of Commons rose for the summer.

Speaking to reporters on Parliament Hill on Friday, Conservative Leader Pierre Poilievre criticized Carney and his spending commitments.

“Spending is up eight per cent under Mr. Carney, and it looks like the deficit will be twice the one that Trudeau left behind. Though we don’t know, because Mr. Carney, the genius banker, still hasn’t introduced a budget,” Poilievre said, adding that the prime minister is “spending more and investing less.”

Federal budgets are typically presented in the spring. This fall’s budget will be the first updated picture of Canada’s finances since the fall economic statement that was tabled last December.