MNI BRIEF:Carney Pledges `Big Swing' Budget To Rebuild Exports

Prime Minister Mark Carney signaled that Canada’s Nov. 4 budget will feature a historic deficit aimed at spurring investment, doubling non-U.S. exports over the next decade, and shielding domestic industries from American tariffs.

"We used to take big, bold risks in this country. It is time to swing for the fences again," Carney said Tuesday night in what his office billed as a pre-budget speech. He also alluded to an IMF report last week saying Canada has the capacity to take on deficit spending noting, "our government has the fiscal capacity to act decisively. We must draw on these strengths."

The remarks did not hint at whether the deficit will come in at CAD100 billion to double the previous record excluding the pandemic, as the La Presse newspaper and the CD Howe think tank have estimated. MNI has also reported the government designated CAD95 billion in potential borrowing to fight the trade war. (See: MNI: Canada Approved CAD95B Geopolitical Contingency Borrowing)

Carney reiterated a pledge to balance the "operating deficit" within three years to free up cash for shielding Canada against U.S. tariffs. "Despite everything, our economy is holding up," he said. "And we are re-engaging with the global giants India and China while we deepen our partnerships with traditional allies."