OTTAWA — On Wednesday, opposition parties criticized Prime Minister Mark Carney for lacking clarity regarding his future steps following his administration’s announcement that they would not present a federal budget before the House of Commons adjourned for the summer break.
After the initial gathering of Justin Trudeau’s Cabinet following the swearing-in event on Tuesday, Finance Minister François-Philippe Champagne announced that rather than presenting a spring budget, the administration plans to release an economic update in the autumn.
The finance minister stated that the government plans to reintroduce a ways-and-means motion once Parliament reconvenes in the next few weeks. This move aims to implement the tax cuts that were part of the Liberal Party’s platform during the latest elections. However, he didn’t clarify why they aren’t presenting a new budget at this time.
“What we have now is a reduction in taxes for the middle class. This serves as our first step. The second step involves an upcoming throne speech wherein we will detail the key focuses of the Canadian government. Following this, there will also be a fall economic statement,” explained Champagne to journalists post-meeting.
The Conservative Party leader, Pierre Poilievre, along with the acting NDP head, Don Davies, have stated that it is unacceptable for Carney to delay producing a financial strategy indefinitely.
Without a clear path ahead, no economic strategy, and no desire to take charge," Poilievre stated in a press statement. "Failing to present a budget at this time isn’t merely an omission—it’s a breach of trust with workers and families nationwide who anticipated this administration would outline their approach.
Davies stated that Parliament must have the ability to examine the Liberal government’s expenditure proposals, and Ottawa shouldn’t postpone spending due to the economic downturn caused by U.S. tariffs.
"The fundamental role of Parliament is to approve and examine expenditures. We require an economic strategy to be presented in the House of Commons by June," he stated via email.
On Wednesday, during their initial gathering as the newly formed cabinet, the Liberals aimed to convey a clear message regarding their political priorities—especially emphasizing the planned tax reduction, which would decrease the rate for the lowest income group by an entire percentage point.
Following the meeting, staffers allowed TV cameras and photographers into the cabinet room to observe him signing a directive note instructing Champagne to commence work on the tax cuts without delay.
"Affordability is one of our focuses as we work towards strengthening this economy," Carney stated.
Ken Boessenkool, a policy specialist from the consultancy firm Meredith, Boessenkool and Phillips, suggested that Ottawa might be holding off on presenting its budget until they have a more defined understanding of the economic landscape. This clearer view is expected to become evident by autumn.
It might turn the autumn statement into something akin to a budget, despite economic statements usually being more concise.
Boessenkool stated that U.S. President Donald Trump's fluctuating tariffs make it challenging for Ottawa to predict outcomes.
"If you manage to enter the president’s mind, you surpass everyone I know in terms of intelligence," he stated.
Carney's administration must still navigate the current minority Parliament to get a ways-and-means motion approved so as to implement the tax reduction, relying on support from other political groups to ensure its approval.
When asked about the vote, Champagne stated that he anticipates other members of Parliament will back the government, as this concerns Canadians. He added that this presents an opportunity for all parliamentarians to demonstrate their support by saying, ‘We stand behind Canadians during a period when they require some relief,’
Carney’s administration also unveiled multiple new cabinet committees on Wednesday aimed at showcasing their dedication to strengthening Canada's sovereignty and enhancing the overall well-being of Canadians.
The details outline a committee concentrating on priorities, planning, and strategy, set to be led by Carney, along with a newly formed "Build Canada" group aimed at bolstering the nation’s economy, as stated on the Prime Minister's official webpage.
Carney also established a committee focused on government transformation and efficiency, aimed at cutting down government expenditures.
A separate panel focuses on maintaining a "safe and independent Canada," overseeing Canada-US interactions, and promoting "Canada's global objectives."
Wayne Long, who has recently become a junior minister, stated to journalists that he believes Carney will manage the government with a corporate-style approach rather than how his predecessor, Justin Trudeau, did.
“I believe our government will start operating more like a corporation, something that has been needed for quite some time,” stated Long, referring to himself as one of multiple Liberals who led a rebellion within the caucus against Trudeau earlier this year due to his leadership.
Justice Minister Sean Fraser additionally mentioned that the Carney administration is exhibiting a "distinctive corporate culture" due to its exclusive emphasis on economic matters.
A number of ministers who attended the inaugural gathering of the updated cabinet on Wednesday mentioned that they are currently undergoing briefings about their respective portfolios.
Tim Hodgson, the Natural Resources Minister, mentioned his intention to travel to Western Canada shortly for discussions with stakeholders.
"I'm excited about getting started and I can't wait to dive in," he stated.
However, as the federal government seeks to offer an olive branch to the Prairie provinces and the oil and gas industry, which has been disillusioned by the previous Trudeau administration, a source of domestic friction emerged on Wednesday.
Canada’s minister responsible for culture and identity, Steven Guilbeault, commented on pipelines and noted that Trans Mountain is operating at below half of its current capacity.
“Perhaps before we begin discussing the construction of an entirely new pipeline, we should focus on optimizing the utilization of our current infrastructure,” he stated to reporters.
— Compiled with contributions from David Baxter
The report from The Canadian Press was initially released on May 14, 2025.
Kyle Duggan from The Canadian Press
