Growth, Prudence, Politics: The Tests Ahead for Carney’s First Budget
In an op-ed, Business Council of Canada executive Theo Argitis writes that next week’s federal budget under Prime Minister Mark Carney “could be a consequential one,” defining it as a test of Canada’s political, fiscal and economic accountability. Argitis says Carney is emphasizing the economic dimension, aiming to “transform the nation’s economy at a time of crisis,” but warns that credibility with markets will be crucial: “If markets punish Canada for its debt, interest rates could surge.” He notes the government plans to balance its operating budget while borrowing for capital investments, a strategy meant to focus on the “quality of spending,” though he cautions that such flexibility “can be abused” without clear fiscal anchors.
