OTTAWA — Finance Minister François-Philippe Champagne announced Thursday that the Carney government is committed to revitalizing the Canadian economy. Speaking to an audience in Toronto, he emphasized the need to "double down" on investments aimed at enhancing competitiveness and growth. The government recently released its first budget, which prioritizes long-term economic strength in response to new American tariffs imposed on Canadian exports earlier this year. Champagne described the budget as a foundational step rather than a conclusion. "Competition is central to productivity and innovation and affordability," he stated at the MaRS innovation hub. "We’ve started but there’s so much more to do." Key initiatives in the budget focus on improving Canada’s competitiveness and expanding export capabilities beyond the United States. Significant funding has been allocated to infrastructure, defense, housing, and skills development. Additionally, the budget proposes cuts to the public service, which had seen a seven percent annual increase in size over recent years. Economists highlight that competitiveness and productivity are essential for robust economic growth. Champagne also pointed out the need to enhance competitiveness in consumer markets, particularly in banking and telecommunications. David Dodge, former governor of the Bank of Canada, remarked that the budget should be viewed as the initial phase of a broader strategy to stimulate growth. "It is budget number one in what is obviously a two-to-three-stage process," he said. Dodge noted that while the government's increased borrowing could lead to a more expensive national debt, it may also encourage private sector investment and facilitate major infrastructure projects. The budget's additional spending is projected to raise this year's deficit to $78.3 billion, marking the third-highest deficit in Canadian history and the largest in a non-pandemic year. The government anticipates gradual reductions in the annual deficit over the next four years, but this will still result in an additional $320 million in debt by the end of the decade. Currently, the federal government’s total debt stands at $1.27 trillion, with nearly half of that amount accumulated in the past five years. The updated budget forecast indicates that Ottawa is on track to incur $593.1 billion in debt over the next five years, which would account for 46.7 percent of the total debt in Canadian history. Champagne stressed the urgency of the budget's extra spending, stating that Canada must "seize the moment" amid ongoing trade disputes with the U.S. and China, as well as challenges posed by a slowing global economy. The government is actively promoting the new fiscal plan through various post-budget events, which is particularly crucial this year. The Carney government began the week three MPs short of a majority, which could complicate the budget's passage. However, the situation improved when Conservative MP Chris d’Entremont joined the Liberal caucus, meaning the budget will now require two non-Liberal votes, or abstentions, to pass and avoid triggering an election later this month.