MPs Reassemble as Carney Projects Larger Fall Budget Deficit

Members of Parliament (MPs) have reconvened in the House of Commons today, as Prime Minister Mark Carney indicated that the government’s upcoming fall budget will feature a deficit larger than the previous year. The anticipated increase in the deficit is attributed, in part, to tariffs imposed by the United States and the government’s measures to counteract their economic impact.

During a news conference in Ottawa on Sunday, Carney did not provide a specific figure for the projected deficit. This announcement sets the stage for a critical dialogue on fiscal policy as Parliament resumes its sessions. The budgetary issues are expected to take centre stage when Carney faces off against Pierre Poilievre, the new leader of the Conservative Party, during the first daily question period of the season.

Legislative Agenda and Political Dynamics

Poilievre, returning to the House of Commons after securing a seat in an Alberta byelection last month, will find himself in a challenging position as he seeks to assert his party’s stance on fiscal matters. His previous defeat in the April general election in his long-held Ottawa-area riding has added urgency to his political comeback.

Government House Leader Steven MacKinnon is scheduled to present the Liberal government’s priorities for the fall session. Among the key items on the legislative agenda is a contentious border security bill, which will require cooperation from opposition parties for successful passage.

The minority government faces hurdles in advancing its initiatives, particularly in light of the increased deficit. The financial implications of the proposed budget, combined with significant external pressures, are likely to foster intense debates in the coming weeks. As MPs grapple with these challenges, the economic landscape and the government’s response to U.S. tariffs will be closely scrutinized.

This report was first published by The Canadian Press on September 15, 2025. The unfolding developments in Parliament will shape Canada’s political discourse as the government navigates fiscal responsibility amidst external economic pressures.