Carney promises tax reductions and increased defense funding in his campaign

Carney promises tax reductions and increased defense funding in his campaign platform for the Canadian election.

Prime Minister Mark Carney campaigns in Niagara Falls: On April 18, 2025, in Niagara Falls, Ontario, Canada's Prime Minister Mark Carney delivers key messages during his Liberal Party election campaign.

Overview: - Carney's platform includes tax cuts, infrastructure investments, and increased defense spending. - Aims to reduce the federal deficit to 1.35% of GDP by the 2028-29 fiscal year.

- Plans to boost defense spending to surpass NATO's 2% GDP target. TORONTO, April 19 - Canadian Prime Minister Mark Carney unveiled his election campaign platform on Saturday, which emphasizes tax reductions and new expenditures on infrastructure and defense, while promoting a vision for an economy that is less dependent on the United States. Carney, who previously managed crises as the head of the Bank of Canada during the 2008 financial meltdown and the Bank of England during Brexit, asserts he is well-positioned to confront U.S. President Donald Trump, who has imposed tariffs on Canada and hinted at territorial claims.

At a press conference, Carney stated, "We are facing a significant crisis, so we must accomplish two key objectives. First, we must curb unnecessary spending, which we will do. More importantly, we need to be bold in driving economic investment and seizing the tremendous opportunities before us." Carney is also keen to distinguish his leadership from that of former Prime Minister Justin Trudeau by committing to a more streamlined government. his plan projects a federal deficit of 1.96% of GDP for the 2025-26 fiscal year, reducing to 1.83% the following year and ultimately to 1.35% by 2028-29.

The Trudeau administration had anticipated a deficit of 1.6% GDP for the previous fiscal year ending in March. Carney's strategy introduces a new approach to budget management by categorizing spending into operational and capital expenditures. He noted that government spending has been increasing at an annual rate of around 9%, and under his governance, this growth would be reduced to approximately 2% without cutting transfers to provinces, territories, or individuals.

Carney vowed to achieve a balanced operating budget within the next three years, stating, "Our plan will rein in government spending because the government has been expending too much, while Canada has been investing too little." In addition, Carney aims to enhance defense spending to surpass NATO's 2% GDP benchmark, emphasizing Canada's commitment to transatlantic security in partnership with "like-minded" European nations.