Narrow Vote Secures Support for Canadian Budget

The Canadian Parliament narrowly passed Prime Minister Mark Carney's first budget, averting a possible election. The vote was 170-168, allowing further study of the budget, which proposes increased fiscal deficit to address U.S. tariffs. Despite lacking austerity measures, the budget plans to reduce federal employees.

The Canadian Parliament narrowly voted in favor of Prime Minister Mark Carney's first budget on Monday, with a vote tally of 170-168. This result saves the government from a second election within the same year.

The Liberals, who are a few seats short of a majority in the 343-seat House of Commons, needed support or abstention from some opposition legislators to pass the budget to further study. The budget proposes doubling the fiscal deficit to combat U.S. tariffs and fund defense and housing, while reducing the federal workforce but not imposing severe austerity measures.

Polling indicates that the Liberals would likely maintain power if elections were held immediately. Meanwhile, the Conservative Party faces internal challenges, with leader Pierre Poilievre up for a performance review in January after the party's loss to the Liberals in the April election.

(With inputs from agencies.)