• Mark Carney plans to run deeper federal deficits to fund infrastructure and tax cuts.
• The proposed deficit could reach C$62.3 billion this fiscal year.
• Carney aims to exceed NATO's 2% GDP target for defence spending by 2030.
• Canadians' nationalism has surged due to U.S.-Canada tensions under Trump.
• The Liberal Party, led by Carney, currently leads in election polls ahead of the April 28 vote.

Canadian Prime Minister Mark Carney has unveiled an ambitious spending plan for the upcoming election, promising deeper deficits to fund infrastructure, reduce taxes, and boost defence spending. His Liberal Party's platform, announced in Ottawa, anticipates a federal shortfall of C$62.3 billion (US$45 billion) for this financial year and net new spending of C$129.2 billion (US$93.3 billion) over the next four years should they win the election on April 28, according to South China Morning Post.

Carney's plan would lift Canada's net deficit as a percentage of its gross domestic product (GDP) to 1.96%, with expectations to reduce it to 1.35% by 2028. He emphasized the importance of responding boldly to crises, stating, "It’s said there are no atheists in foxholes. There should be no libertarians in a crisis," highlighting the need for increased government intervention during challenging times, according to India Times.

Among the major allocations in the proposed budget, Carney wants to see increased defence spending exceed NATO’s 2% GDP benchmark by the year 2030. He plans to invest in military upgrades, including submarines and drones, while also addressing trade diversification to reduce reliance on the U.S. This approach comes in response to the ongoing trade tensions and tariffs imposed by the U.S. under President Trump, as expressed in his recent campaign rhetoric, according to Al Jazeera.

Furthermore, the election platform outlines intentions to use revenues from counter-tariffs on U.S. goods to support affected Canadian workers and businesses, demonstrating a strategic plan for economic resilience amid external pressures. Carney and his team also promise to lower operating budget growth rates from 9% to 2% annually, insisting that “the government has been spending too much and Canada has been investing too little,” according to Reuters.

Poll sentiments indicate a shift in favor of Carney's Liberals, who now lead ahead of elections following a period of increased Canadian nationalism amid U.S. hostilities. Political analysts attribute Carney's ascent in the polls partly to Trump’s aggressive stance towards Canada, noting that "without the Trump effect, the Conservatives would probably be in a much stronger position," as observed by McGill University political science professor Daniel Beland. The sentiment against Trump has allowed Carney's administration to regain footing in an environment that seemed unfavorable merely months earlier, according to India Times.