Mark Carney sets his sights on Trudeau's legacy
OTTAWA — Canada’s prime minister unveiled his first federal budget plan on Tuesday, a long-awaited moment in the annual cycle of Canadian politics when Ottawa tells the country how it wants to spend hundreds of billions of taxpayer dollars.And with that plan, Mark Carney is openly dismantling parts of Justin Trudeau's legacy — an ongoing project in service to economic growth and a more muscular Canada.Carney’s ambitious blueprint aims to slim down the federal public service that ballooned under Trudeau’s watch, while spending tens of billions on national defense and billions more on trade, transport and health infrastructure.The plan also sets its sights on reworking, winding down or eliminating various climate, energy and tax policies that helped define Trudeau's decade in power.Farees Nathoo, a former director of parliamentary affairs and issues management to then-Finance Minister Chrystia Freeland, said the budget stands out from the Trudeau era because of its policy focus and fiscal discipline."The budget quite tactically conveys Prime Minister Carney’s economic policy and puts forward a new brand — including by very explicitly differentiating himself from some of Mr. Trudeau’s hallmark commitments," said Nathoo, who is now vice president of strategy and risk at Enterprise Canada. "Carney is focused on infrastructure, housing, defense and productivity."But Carney is skating on thin parliamentary ice. His Liberal government is two seats short of a majority in the House of Commons, and will need the support of at least one opposition party to approve the fiscal plan and avoid an election.Carney is also fending off a Conservative Party that nearly won power after Trudeau's departure — and NDP and Bloc Québécois MPs who've threatened to vote against his budget.Trudeau, we hardly knew yeThe budget book is peppered with reminders that this is no longer Trudeau's Ottawa. The former PM brought in ambitious social programs, including child care, pharma care and dental care. He also prioritized climate and energy programs and regulations that reshaped Canada's effort to curb emissions, and raised the bar for resource project approvals.Carney preserved most of those measures, but not everything made the cut.Gone is a decade-long effort to plant 2 billion trees — a pledge first made in 2019 that struggled mightily to keep pace with planting goals.And federal workers are in for anxious times.Carney's plan notes the federal bureaucracy ballooned by 40 percent during the 10 years Trudeau was in power, an "unsustainable" pace that has "left federal finances strained." Departments and agencies are planning to shed roughly 10 percent of the workforce — "about 40,000 positions."In a stark departure from the former PM's aims, fine print in the budget acknowledges that men will disproportionately benefit from some proposals.Trudeau came to power on a promise to infuse gender equality into government operations.He famously explained that his front bench featured an equal number of men and women "because it's 2015." Ten years later, Carney has maintained that parity.But he's also proposing measures that, by the government's own admission, favor men.One example: The government will eliminate a Trudeau-era luxury tax on aircraft and boats, which an annex at the back of the budget documents takes time to explain will favor buyers who are "disproportionately higher income and primarily men."A shift on climate changeCarney's first order of business in office was using a Sharpie to zero out an unpopular consumer carbon price that he called "divisive."Carney is not getting rid of an industrial price on carbon that has Conservatives howling, nor is he moving to repeal a tanker ban on the West Coast or controversial environmental assessment regulations.The government is, though, hinting at winding down an oil and gas emissions cap that Alberta Premier Danielle Smith has for years claimed is a drag on industry — one of several climate-focused measures that soured relations between Smith and Trudeau.The government didn't exactly promise to eliminate the cap, but it signaled a suite of other emission reduction policies could make it unnecessary.The budget document claims carbon markets, methane regulations and carbon capture technology could render an emissions cap redundant, "as it would have marginal value in reducing emissions."Smith has joined industry voices in railing against anti-“greenwashing” provisions that penalize companies that make false or misleading environmental claims. Smith says the law poses a threat to free speech.Carney intends to amend part of that law, which is "creating investment uncertainty and having the opposite of the desired effect."Earlier this year, Carney also paused a Trudeau-era push to mandate the sale of electric vehicles. The budget documents promise "next steps … in the coming weeks."In 2022, when German then-Chancellor Olaf Scholz visited Canada, Trudeau took heat for raising doubts about the "business case" for LNG exports to Germany.The government is now renewing an expired measure that allowed LNG companies to write off the depreciated cost of liquefaction equipment. That measure, in place as of Wednesday only for "low-carbon" facilities, is meant to "accelerate the type of business investment that will drive productivity growth in Canada."Hey America, this one's for youCarney is also ratcheting up defense spending as an olive branch to a Trump administration that demanded NATO members bulk up their contributions to the alliance.Trudeau eventually promised to spend the NATO benchmark of 2 percent of GDP by 2030. Earlier this year, Carney promised to hit it by March — and then agreed to meet NATO's new 5-percent minimum by 2035.In another nod across the border, Americans who own property in Canada will also welcome the government's plans to cancel a 1 percent annual tax on the value of "vacant or underused" properties.Former Rep. Brian Higgins, a Democrat who represented part of Buffalo, New York, long railed against the levy. He argued it unfairly punished Americans — and he even advocated for retaliation.The budget documents acknowledge the group of taxpayers who will benefit from the axed measure "likely includes a high percentage of non-resident, non-Canadians."
The prime minister’s first budget revisits a decade of Liberal policy on climate, taxes and the public service.

OTTAWA — Canada’s prime minister unveiled his first federal budget plan on Tuesday, a long-awaited moment in the annual cycle of Canadian politics when Ottawa tells the country how it wants to spend hundreds of billions of taxpayer dollars.
And with that plan, Mark Carney is openly dismantling parts of Justin Trudeau's legacy — an ongoing project in service to economic growth and a more muscular Canada.
Carney’s ambitious blueprint aims to slim down the federal public service that ballooned under Trudeau’s watch, while spending tens of billions on national defense and billions more on trade, transport and health infrastructure.
The plan also sets its sights on reworking, winding down or eliminating various climate, energy and tax policies that helped define Trudeau's decade in power.
Farees Nathoo, a former director of parliamentary affairs and issues management to then-Finance Minister Chrystia Freeland, said the budget stands out from the Trudeau era because of its policy focus and fiscal discipline.
"The budget quite tactically conveys Prime Minister Carney’s economic policy and puts forward a new brand — including by very explicitly differentiating himself from some of Mr. Trudeau’s hallmark commitments," said Nathoo, who is now vice president of strategy and risk at Enterprise Canada. "Carney is focused on infrastructure, housing, defense and productivity."
But Carney is skating on thin parliamentary ice. His Liberal government is two seats short of a majority in the House of Commons, and will need the support of at least one opposition party to approve the fiscal plan and avoid an election.
Carney is also fending off a Conservative Party that nearly won power after Trudeau's departure — and NDP and Bloc Québécois MPs who've threatened to vote against his budget.
Trudeau, we hardly knew ye
The budget book is peppered with reminders that this is no longer Trudeau's Ottawa. The former PM brought in ambitious social programs, including child care, pharma care and dental care. He also prioritized climate and energy programs and regulations that reshaped Canada's effort to curb emissions, and raised the bar for resource project approvals.
Carney preserved most of those measures, but not everything made the cut.
Gone is a decade-long effort to plant 2 billion trees — a pledge first made in 2019 that struggled mightily to keep pace with planting goals.
And federal workers are in for anxious times.
Carney's plan notes the federal bureaucracy ballooned by 40 percent during the 10 years Trudeau was in power, an "unsustainable" pace that has "left federal finances strained." Departments and agencies are planning to shed roughly 10 percent of the workforce — "about 40,000 positions."
In a stark departure from the former PM's aims, fine print in the budget acknowledges that men will disproportionately benefit from some proposals.
Trudeau came to power on a promise to infuse gender equality into government operations.
He famously explained that his front bench featured an equal number of men and women "because it's 2015." Ten years later, Carney has maintained that parity.
But he's also proposing measures that, by the government's own admission, favor men.
One example: The government will eliminate a Trudeau-era luxury tax on aircraft and boats, which an annex at the back of the budget documents takes time to explain will favor buyers who are "disproportionately higher income and primarily men."
A shift on climate change
Carney's first order of business in office was using a Sharpie to zero out an unpopular consumer carbon price that he called "divisive."
Carney is not getting rid of an industrial price on carbon that has Conservatives howling, nor is he moving to repeal a tanker ban on the West Coast or controversial environmental assessment regulations.
The government is, though, hinting at winding down an oil and gas emissions cap that Alberta Premier Danielle Smith has for years claimed is a drag on industry — one of several climate-focused measures that soured relations between Smith and Trudeau.
The government didn't exactly promise to eliminate the cap, but it signaled a suite of other emission reduction policies could make it unnecessary.
The budget document claims carbon markets, methane regulations and carbon capture technology could render an emissions cap redundant, "as it would have marginal value in reducing emissions."
Smith has joined industry voices in railing against anti-“greenwashing” provisions that penalize companies that make false or misleading environmental claims. Smith says the law poses a threat to free speech.
Carney intends to amend part of that law, which is "creating investment uncertainty and having the opposite of the desired effect."
Earlier this year, Carney also paused a Trudeau-era push to mandate the sale of electric vehicles. The budget documents promise "next steps … in the coming weeks."
In 2022, when German then-Chancellor Olaf Scholz visited Canada, Trudeau took heat for raising doubts about the "business case" for LNG exports to Germany.
The government is now renewing an expired measure that allowed LNG companies to write off the depreciated cost of liquefaction equipment. That measure, in place as of Wednesday only for "low-carbon" facilities, is meant to "accelerate the type of business investment that will drive productivity growth in Canada."
Hey America, this one's for you
Carney is also ratcheting up defense spending as an olive branch to a Trump administration that demanded NATO members bulk up their contributions to the alliance.
Trudeau eventually promised to spend the NATO benchmark of 2 percent of GDP by 2030. Earlier this year, Carney promised to hit it by March — and then agreed to meet NATO's new 5-percent minimum by 2035.
In another nod across the border, Americans who own property in Canada will also welcome the government's plans to cancel a 1 percent annual tax on the value of "vacant or underused" properties.
Former Rep. Brian Higgins, a Democrat who represented part of Buffalo, New York, long railed against the levy. He argued it unfairly punished Americans — and he even advocated for retaliation.
The budget documents acknowledge the group of taxpayers who will benefit from the axed measure "likely includes a high percentage of non-resident, non-Canadians."
