Political parties and their leaders are not always known for fulfilling their promises. The recent budget presents an opportunity to assess the progress made on the commitments made by Prime Minister Mark Carney and the Liberal Party during the election campaign earlier this year. While it is not possible to cover all aspects comprehensively, certain key promises have been evaluated, focusing on the government’s top priorities.
**The Tariff Dispute:**
Following the imposition of tariffs by U.S. President Donald Trump on Canadian steel, aluminum, and vehicles, the Liberal platform aimed to generate $20 billion from retaliatory tariffs in the current fiscal year. However, the latest budget reveals a revised expectation of $4.4 billion due to the reduction of countermeasures against American goods in August. The government has also granted exemptions to numerous Canadian companies from paying counter-tariffs, resulting in a net revenue of $3.7 billion from tariffs. The budget includes up to $25 billion in support over five years for sectors severely impacted by the tariffs.
**Defence Commitments to NATO:**
Under pressure from Trump, the Liberals committed to increasing Canada’s defense spending to two percent of GDP by 2030, a target set by NATO countries. However, Canada has yet to meet this commitment. Additionally, Carney agreed post-election to raise the NATO commitment to five percent of GDP, including support infrastructure funding. Finance Minister François-Philippe Champagne confirmed that Canada will achieve the two percent target this year, ahead of schedule. However, the budget lacks specific details on future spending and GDP comparisons.
**Doubling Home Construction:**
During the election campaign, the Liberal Party pledged to double the annual construction of homes to 500,000 by establishing Build Canada Homes with a $10 billion investment in affordable housing and $25 billion in developer loans. The government initiated Build Canada Homes in September and allocated $13 billion over five years for its funding. The revised goal now aims to “nearly” double homebuilding to between 430,000 and 480,000 units annually.
**Investment in AI:**
Despite the significant potential of artificial intelligence, the budget falls short of the Liberals’ promised investment. Carney had committed to investing $2.5 billion in digital infrastructure over two fiscal years and providing $15,000 for workers in priority sectors to learn AI skills. However, the budget only allocates $925 million over five years for public AI infrastructure, with $800 million being a carryover from the previous budget. The government plans to attract private capital for AI investment, though details remain vague.
**CBC Funding:**
While not a specific campaign promise, the budget announced collaboration with CBC/Radio Canada to explore participation in Eurovision. The Liberals had pledged an immediate $150 million increase in funding for CBC during the campaign, along with a focus on enhancing governance and accountability. The budget includes the $150 million funding boost and hints at strengthening CBC’s independence, aligning with the campaign commitment.