Prime Minister Mark Carney, a former banker, has managed to exceed his government's budget twice in just seven months, drawing sharp criticism from fiscal watchdogs. According to a report from the Parliamentary Budget Officer, Carney's government has overshot its spending targets by approximately $12 billion this year, undermining his campaign pledge to rein in federal expenditures.
Budget Misses and Spending Increases
When Carney released his first budget in November 2025, he proposed spending $588 billion in 2026. However, the Spring Economic Update in April 2026 raised spending to about $595 billion, exceeding the original plan by more than $6 billion. Just over a month later, another $6 billion in overspending was recorded, bringing total overruns to $12 billion.
This pattern contradicts Carney's campaign platform, which stated that "the federal government has been spending too much." Going over budget twice in one year is the opposite of fixing that problem, critics argue. Moreover, Carney's spending plan already projected $21 billion more than former Prime Minister Justin Trudeau's 2026 budget.
Impact on Borrowing and Debt
The overspending has also increased government borrowing. The Spring Economic Update projected borrowing of $65 billion this year, but the PBO now estimates borrowing will reach $72 billion. Higher borrowing leads to increased debt interest costs, which are projected to hit $59 billion this year—about $1,400 per person. This exceeds federal health transfers ($57 billion) and GST revenue ($53 billion).
By 2030, debt interest charges per person could rise to $1,885, as the government has no plan to stop borrowing. The PBO forecasts borrowing will remain at $58 billion in 2030.
Wasteful Spending Examples
Critics point to specific examples of wasteful spending. Carney spent nearly $200,000 on gourmet in-flight catering for just three trips. The finance minister contracted out speechwriting for $12,000 instead of using an in-house writer. Additionally, the gun confiscation program, which law enforcement experts say is ineffective, costs at least $742 million.
Call for Spending Cuts
Gage Haubrich, Prairie Director, and Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation, argue that Carney needs to cut wasteful spending. They suggest reducing the federal bureaucracy, which has grown 80% in cost over the last decade. Bringing bureaucracy costs back to 2019 levels, adjusted for inflation, would save almost $18 billion.
"Taxpayers can't afford to pay $1,400 every year to cover debt interest charges because the government keeps overshooting its spending targets," they said. "Carney needs to rein in spending and follow one simple rule: Only spend what you promised. Don't go over budget."
