Canada plans to nearly double its deficit to C$78 billion for 2025-26: budget

Canada's deficit would nearly double under a 2025-26 spending plan unveiled by Prime Minister Mark Carney's government on Tuesday.

The deficit would reach Can$78.3 billion (US$55.5 billion) under the proposed budget -- nearly twice as large as last year's budget -- as part of Carney's efforts to reform Canada's economy.    

Ottawa expects the Canadian economy to slow down in 2025 and 2026 due to the effects of US tariffs and trade uncertainties, the government said Tuesday.