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Finance Minister François-Philippe Champagne announced the federal government will table its first budget under Prime Minister Mark Carney in October. Champagne told CTV News on August 22 that the government has been "working all summer" on an "ambitious plan."

The finance minister initially stated no budget would be tabled in 2025, but Carney clarified that the spring budget will be presented in the fall.

A Conservative motion for a government budget failed on June 10, with NDP and Liberal opposition. This occurred after a non-binding June 2 vote where most MPs supported a spring budget.

Carney earlier defended not releasing a spring budget, citing the short parliamentary session before summer and the recent cabinet appointments, stating there was no need to rush.

He explained May 18 in Rome that a budget presented earlier would have been premature due to ongoing discussions with the U.S. regarding their economic partnership, stating that greater clarity was needed before proceeding.

On Friday, Champagne said Canada must "rethink" itself for the 21st century, particularly as its neighbour adopts a new trade policy. He also added that as the world economy is "being restructured," Canada needs to "diversify" and have "one Canadian economy."

“The tariff situation has been evolving, so the fact that we have a budget in October is helpful, because by that time, we have more certainty,” Champagne said, adding that waiting to present the budget in October will allow the government to provide a “better picture” to Canadians.

Ahead of the federal budget, Champagne launched consultations in mid-July seeking Canadian input on defence spending and economic strengthening during an ongoing trade war. "Your ideas will help us guide the choices we need to make as a nation," he said.

Carney lifted all retaliatory tariffs on free-trade-exempt goods, effective September 21, but maintained them on American steel, aluminum, and autos.

The government announced on July 14 that budget consultations will run until August 28. These consultations aim to address lowering costs, job creation, housing, nation-building projects, and strengthening Canada's defence industry. 

Carney, in his February Liberal leadership bid, promised to meet NATO spending obligations by 2030. He later noted the June NATO summit would impact Canada's finances.

As prime minister, Carney vows to cut spending. That contradicts his projected 2025/26 spending of $486.9 billion, an 8.4% increase. The Liberal platform anticipates record deficits for the next two fiscal years before a balanced budget.

Despite a 166-164 Commons vote, the minority Liberal government claimed no obligation to deliver a pre-summer budget or economic update. Carney declined to expedite, prioritizing affordability, infrastructure, and trade barrier removal.

"We know how to grow the economy without spending money," he stated, amidst opposition outrage, highlighting his work to reduce interprovincial trade barriers before the summer recess.

Bill C-5, the One Canadian Economy Act, passed and received royal assent on June 26, eliminating interprovincial trade barriers and streamlining major project applications. Approved projects, including potential oil and gas pipelines, are not yet known.

The Liberals also prioritized tax relief for the middle class by slashing the federal bureaucracy.

No MPs voted on a subsequent Throne Speech confidence vote to dissolve Parliament and trigger a snap election. Parliament has not balanced a budget since 2007.