Political parties and their leaders do not always have a strong reputation for fulfilling their promises. This week’s budget provides an opportunity to assess some of the commitments made by Prime Minister Mark Carney and the Liberal Party during the spring election campaign. Have these promises materialized?
While it is not possible to cover every aspect comprehensively as some budget components were not tied to specific campaign pledges, certain key priorities of Carney’s administration can be evaluated.
**Tariff Dispute**
Following the imposition of 25% tariffs on Canadian steel, aluminum, and vehicles by U.S. President Donald Trump, the Liberal platform aimed to generate $20 billion from retaliatory tariffs this fiscal year. However, the recent budget reveals an anticipated collection of only $4.4 billion. This reduction is primarily due to the removal of most countermeasures against American goods in August to facilitate negotiations with Trump. Additionally, numerous Canadian companies have been exempted from counter-tariffs, resulting in a net revenue of $3.7 billion. Nonetheless, this figure may decrease as more companies seek relief from these tariffs. The government has allocated up to $25 billion over five years to support sectors severely impacted by the tariffs.
**NATO Defense Commitments**
Under pressure from Trump, the Liberals committed to increasing Canada’s defense spending to two percent of GDP by 2030, a target that all NATO countries pledged to meet. However, Canada has not fulfilled this commitment. Following the election, Carney agreed to further raise the NATO commitment to five percent of GDP, including 1.5 percent for support infrastructure. The budget states that Canada will achieve the two percent target this year, surpassing the initial promise. However, the budget lacks specific figures to ascertain the government’s adherence to its commitments in the defense sector.
**Doubling Home Construction**
During the campaign, the Liberal Party proposed constructing 500,000 homes annually to double the current rate. This initiative involved establishing Build Canada Homes and allocating $10 billion for affordable housing construction, along with a $25 billion developer loan. While Build Canada Homes was created in September, the budget has earmarked $13 billion over five years for its funding, expecting homebuilding to nearly double to a range of 430,000 to 480,000 homes annually.
**Investment in Artificial Intelligence**
Artificial intelligence, a groundbreaking technological advancement, has garnered substantial investment globally. Carney pledged $2.5 billion for digital infrastructure over two fiscal years and $15,000 for worker training in AI during the campaign. However, the budget only commits $925 million over five years for public AI infrastructure, with $800 million being previously announced. The government plans to attract private capital for AI investments, albeit with limited details provided.
**CBC Funding**
While not a specific campaign commitment, the budget disclosed plans to collaborate with CBC/Radio Canada for potential participation in Eurovision. The Liberals had pledged an immediate $150 million funding boost for CBC in the spring. This funding increase is reflected in the budget, with a vague reference to exploring ways to enhance CBC’s independence in line with the campaign promise.
