Mark Carney’s first budget as prime minister will pour billions of dollars into the military and infrastructure. It will also hack away at environ-mental programs, the public service, and immigration levels.
“With so much on the line, the newly elect-ed federal government has tabled a budget that, in many ways, could pass as a Conservative budget,” the Canadian Centre for Policy Alternatives (CCPA) stated.
And while CCPA economists and others say that there are nuggets of good news, the biggest winners of this budget are the military and fossil fuel companies. Those hoping for a greener or more affordable economy, and those hoping for a more just and equitable country, are left with crumbs.
“This is a budget that decided to invest in military and police rather than climate action,” said Greenpeace’s senior energy strategist Keith Stewart.
The Migrant Rights Network has called the budget “a continued attack on refugees, migrants, and everyone who isn’t a billionaire or weapons manufacturer.”
HERE’S A CLOSER LOOK:
Defence spending
This year, Canada will spend an extra $9 billion, bringing its total military and security budget to $62.7 billion. This includes funds to “modernize” military equipment and technology, plus tens of millions to develop capacity for space launches.
Earlier this year, U.S. President Donald Trump proposed to increase NATO’s spending target to five per cent of members’ gross domestic product, and member states agreed. Canada says it will comply by 2035.
The Maple notes that this type of spending hike brings new contracts for military equipment and infrastructure, though the government is typically not transparent about who benefits.
Environment
Canada will cut $1.3 billion in spending at Environment and Climate Change Canada over the next few years, which Carney argues will “supercharge” economic growth.
Cuts will also impact the agency assessingthe safety of major projects and the CanadaWater Agency, which protects fresh water.
The budget will roll back Trudeau-era measures like the promised cap on green house gas emissions from the fossil fuel sector.
Regulations preventing “greenwashing” have been scaled way back, which advocates warn will make it easier for companies to spread misinformation or climate denialism.
In a statement, Keith Brooks, programs director with Environmental Defence, called out the government for perpetuating “the myth of low-carbon fossil fuels,” and noted that the budget “does not offer any details as to what Canada intends to do to make up for emissions reduction policies that this government has cancelled.”
Public Service
The government will cut about nine percent of its workforce, which means the loss of 30,000 jobs. Union leaders have warned that these cuts will put a fragile public sector at risk.
Immigration
Canada will aim to admit 385,000 temporary residents next year, which is about 43 per cent fewer than in 2025. That target will be further lowered in future years.
Health care
$5 billion will be spent on upgrading health-care infrastructure, such as emergency rooms and urgent care centres. However, the CCPA points out, the problem plaguing hospitals and long-term care homes is lack of staff, which this budget does not address.
The Liberals’ budget narrowly passed in November when Green Party leader Elizabeth May voted in favour and two NDP and two Conservative MPs abstained.
This article appeared in the 2025 Dec – 2026 Jan issue.
