Canada Proposes C$142.1 Billion Spending Plan Over Five Years

Canada’s federal government proposed a C$142.1 billion spending increase over five years, a fiscal plan markets will weigh ahead of the Bank of Canada’s Dec. 9 rate decision.

Finance Minister François-Philippe Champagne presented the budget under Prime Minister Mark Carney. It includes infrastructure and defense spending, investment incentives and assistance for sectors affected by tariffs.

The budget forecasts the deficit will be smaller in 2025-26. Market participants are following inflation, employment and GDP data ahead of the central bank’s announcement. They are also monitoring comments from Bank of Canada Gov. Tiff Macklem and Senior Deputy Gov. Carolyn Rogers.