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Carney government's 2026 federal budget faces criticism over deficits and capital gains exemption

Federal budget deficits, debt servicing costs and a narrow capital gains exemption are drawing political scrutiny ahead of the government's cross-country push to sell the plan.

Photo: Yahoo News

What happened

Finance Minister François-Philippe Champagne defended the federal budget on CTV Question Period, saying deficits are lower for last year, this year and into the future. CP24 Prime Minister Mark Carney and cabinet ministers travelled across the country to sell the federal budget to Canadians. BNN Bloomberg Conservative Leader Pierre Poilievre criticized the budget's $15-million capital gains exemption on the sale of qualifying shares, saying it applies too narrowly. Yahoo News Poilievre said he could not determine who qualifies for the Canada Growth Incentive and called it insignificant and irrelevant. Yahoo News

Around it

The deficit for next year rises to more than $62 billion and stays above $50 billion through 2030, according to the budget. CP24 Projected debt interest costs are expected to reach more than $85 billion by 2030, and next year's debt servicing costs will exceed health-care transfers. CP24 The Canada Growth Incentive excludes businesses in agricultural, fishing, forestry, financial, insurance, utilities, real estate, food and accommodation, arts, recreation and entertainment sectors. Yahoo News The budget states the capital gains measure is expected to bring $715 million in tax relief over the next four years, beginning next fiscal year. Yahoo News Conservatives portrayed the budget as a costly spending binge, while the NDP leader criticized mega deductions in the document. BNN Bloomberg

Sources

  1. CP24‘Deficits are lower, that’s a fact’: Finance minister defends budget
  2. BNN BloombergChampagne, Carney travelling across country to sell federal budget to Canadians
  3. Yahoo NewsPoilievre pans Liberal budget's $15M capital gains exemption, calls for 'simpler' plan

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