Federal budget forecasts $78B deficit as Liberals shift spending plan

The Carney government presented its first budget today, nearly seven months after taking office. The 406-page budget promises to make Canada stronger. It also outlines that Canada's deficit this year will be $78.3 billion. However, the budget deficit is projected to reach $56.6 billion by 2029-2030.

This budget is promising $141 billion in new spending over the next five years in new measures and promises that this spending will result in $51.2 billion in savings.

The government's largest expenditure includes defense spending, which includes $20.4 billion in military recruitment and retention costs. Along with this, it shows $10.9 billion will be spent on defense upgrades and $19.9 billion will be spent on expanding new military capabilities.

Other spending commitments include $51 billion over the next 10 years for the 'Build Communities Strong Fund'.

Budget provides information on the expenditure of $1.7 billion for the International Talent Attraction Strategy and $13 billion for 'Build Canada Homes' over the next 5 years.

There will also be seen some public service downsizing, where according to the government, 28,000 jobs will be reduced in the next 3 years.

Some experts say, this budget presents a picture of capital investment and operational spending and according to experts, this budget does not address affordability, and this will not address housing prices and the average Canadian will wonder what change this budget will bring to their challenges and day-to-day lives.