Mark Carney to Release Budget With Lower Deficit Projections

Prime Minister Mark Carney is expected to release a federal budget on Thursday that projects a significantly lower deficit for the current fiscal year than previous estimates. Department of Finance data through August indicates a first-five-month deficit of $5.4 billion, a sharp decrease from the $11.1 billion recorded during the same period last year.

While Finance Minister François-Philippe Champagne previously projected a $66.9-billion deficit, new estimates suggest the final figure may be closer to $35 billion. This shift is attributed to a 7.1 per cent increase in federal revenue, fueled by higher income tax collections and spiked prices for natural resources, specifically oil.

The upcoming growth and competition budget will introduce tax reforms to spur economic growth, a formal review of corporate tax policies, and support for small and medium-sized businesses. Carney has also proposed a mega-deduction for capital-intensive industries, which is estimated to cost $36.5 billion over five years.

Conservative critic Michael Chong challenged the government's outlook, warning that debt payments continue to grow and that the administration has not fully accounted for its defense spending promises.