Okay, so like, the Liberals totally just squeaked through another confidence vote, which basically means Mark Carney’s government is still standing — for now. Friday’s vote was round two of what’s basically a three-part political survival game over the new federal budget. And like, spoiler alert: they made it through again, 306 to 30. But not without drama.
So, here’s the tea — Fitch Ratings, aka the financial hall monitor of governments, basically looked at Ottawa’s new budget and went, “Um, excuse me? This is kinda messy.” They said the plan “underscores the erosion of the federal government’s finances” and warned that all this “persistent fiscal expansion” could totally hurt Canada’s credit profile. Translation? The country might be maxing out its financial credit card again.
And honestly, Fitch has receipts. They already downgraded Canada’s credit rating back in 2020 from AAA to AA+ when everyone was throwing money at the pandemic. Like, we get it, it was a whole thing. But still, ouch.
Conservative MP Mike Lake was so not having it. He was like, “Hello? Have we learned nothing since the 1990s?” — referring to that era of budget cuts and economic chaos. Meanwhile, Natural Resources Minister Tim Hodgson (who, btw, used to be a banker) clapped back with, “Relax, Moody’s and S&P still give us a triple-A. We’re doing just fine.” Which is like telling your friend you got a C+ but your other professors still think you’re smart.
Finance Minister François-Philippe Champagne’s office tried to play it cool, pointing out that even the International Monetary Fund was like, “Chill, Canada’s finances are actually one of the best in the G7.” So yeah, mixed vibes.
Friday’s vote was technically over a Bloc Québécois motion calling out the budget for, quote, “hurting Quebec.” They were mad it didn’t do enough for health transfers, seniors, or climate action. The NDP even sided with them — but plot twist — the Conservatives of Pierre P. voted with the Liberals, so the Bloc’s motion totally flopped. The NDP’s interim leader Don Davies later said, “We supported the motion because we care about health care, seniors, and the climate, but like, we’re still thinking about how we’ll vote on the final budget on Nov. 17.” Classic “we’ll see” energy.
Also, apparently, Bloc Leader Yves-François Blanchet only got to move his amendment because Pierre P. — yes, the actual Conservative Leader — forgot to move one after his budget speech. Like… oops? Forgetting your homework on Budget Day is kinda iconic, not gonna lie.
Anyway, Carney’s big plan includes $140 billion in new spending over five years — but like, he swears $60 billion in “internal savings” will totally balance that out. The math is giving “trust the vibes, not the numbers.” Debt is expected to hover around 43% of GDP, and Fitch says total government debt will hit 98.5% of GDP by 2027. Which, for the record, is like, double other countries with the same AA rating.
But Mark Carney? He’s still out here manifesting positivity. Speaking to business leaders in Toronto, he said the budget’s all about “bold investments in the country’s future.” When someone asked about, you know, saddling future generations with debt, Carney was like, “We’ve got to be careful — and we will be. Our risk is the economy doesn’t grow fast enough.” Translation: we’re betting it all on growth, babes.
So yeah, round two of the confidence votes is done, and everyone gets a week off before round three on November 17. Canada’s credit might be getting side-eye from Fitch, but the Carney crew’s still serving confidence-core.
XOXO,
Valley Girl News
Where the credit’s shaken, but the confidence is giving main character energy
