Canada's Liberal Government Survives Budget Vote

By Paul Vieira

OTTAWA--Canada's minority Liberal government survived a crucial vote in the legislature Monday evening over its annual budget plan, averting the possibility of a Christmas-time election.

The legislative win means former central banker Mark Carney, who became the Prime Minister in March and led the Liberals to a fourth-straight electoral victory in late April, can begin implementing the government's 2025 budget plan -- which serves as a blueprint to lift Canada out of a deep economic funk caused by hefty U.S. tariffs.

The Liberal government won the vote 170 to 168, on a motion seeking lawmakers' support on the government's economic and fiscal policy, as outlined in the annual budget plan. The 2025 budget plan was released two weeks ago, and seeks about $200 billion in spending and tax measures over the next five years to reboot an economy struggling under the squeeze of President Trump's hefty tariffs.

There was some buzz in Ottawa's political circles about a possible setback for the Liberal government and the possibility of a second election within a year. Under Canada's parliamentary system, the government must secure enough votes to pass legislation and survive votes of confidence to remain in power. In a minority mandate, the government would need the support of opposition lawmakers to stay in power.

Canada's election laws dictate that an election campaign must be at least 37 days. Had the government lost the budget vote, that would have set the stage for a second election in 2025 around Christmas time.

In the election held on April 28, nearly 44% of Canadians voted for the Liberals, enough to secure 169 of the federal legislature's 343 seats. The Liberals needed 172 to secure a majority. The Conservatives, with over 41% of the popular vote, won 144 seats.

Following his victory, Carney ruled out deals with opposition parties to ensure the survival of his minority government in votes such as the one on Monday on the budget plan. The Carney-led Liberals won the spring vote on the idea that the former central banker in Canada and England had the economic and policy wherewithal to deal with Trump's abrupt turn on trade.

Write to Paul Vieira at paul.vieira@wsj.com

Corrections & Amplifications

This article was corrected at 0049 GMT to reflect that The legislative win means former central banker Mark Carney, who became the Prime Minister in March and led the Liberals to a fourth-straight electoral victory in late April, can begin implementing the government's 2025 budget plan -- which serves as a blueprint to lift Canada out of a deep economic funk caused by hefty U.S. tariffs. The original article incorrectly said Mark Carney became the Prime Minister in March after leading the Liberals to a fourth-straight electoral victory in late April.

(END) Dow Jones Newswires

November 17, 2025 19:34 ET (00:34 GMT)