Canadian Prime Minister Mark Carney has announced a smaller budget deficit than expected, helped by rising oil prices and a strong economy despite global tensions and tariff threats.
A new spring update shows Canada’s debt is about 14% lower than earlier forecasts. The government had previously expected a much larger deficit for the 2025–26 fiscal year.
The update also follows the launch of the Canada Strong Fund, the country’s first sovereign wealth fund, which will invest in areas like energy, infrastructure, and technology.
Carney said tough spending decisions helped improve finances, allowing the government to invest in worker training and new projects.
However, the report warns that risks remain due to global conflicts and trade issues. While the economy is expected to keep growing, uncertainty could still affect Canada in the future.
The opposition, led by Pierre Poilievre, continues to criticize government spending and is calling for a balanced budget.
