Although the federal budget carries a $78-billion deficit this year, MP Terry Sheehan said the investments it lays out for Canadian industries are “absolutely critical” for the country moving forward.
“This is a budget that invests – invests in Canada, invests in communities, invests in workers and invests in industries,” Sheehan told SooToday.
“We needed to invest and support our industry right now because of what Trump is doing to our economy, so it was absolutely critical that we invest smartly.”
The Liberal Party’s four-year plan includes a deficit for each year moving forward – although that’s planned to shrink to a $58-billion margin composed entirely of capital expenses and “nation-building projects” by 2028-29.
Contained in the plan are a host of investments meant to spur Canadian industries in the face of steep tariffs put in place by the U.S. government earlier this year.
Under the government’s new Major Projects Office, a $150-billion suite of “nation-building” projects and initiatives were brought forward this fall – including Canada Nickel’s Crawford Project, located in Timmins on the second-largest nickel reserve in the world.
“No matter where they're located in Canada, these big announcements use our stuff, like Canadian steel, wood and aluminum,” Sheehan said.
“What we talked about and what budget 2025 is all about is being our own best customer, and less reliance on these very unpredictable times with the United States.”
The budget also brings forward “generational” investments in the Canadian armed forces, to the tune of $30 billion over the next five years, and a buy Canadian policy meant to prioritize domestic materials in government projects.
For all of its planned spending on Canadian industry and projects, it wasn’t clear whether the Liberal’s first budget under Prime Minister Mark Carney would come to pass until the dying minutes of Monday night’s vote in Ottawa.
The budget narrowly gained approval in a 170-168 vote, with the minority Liberals securing the needed votes with the support of the Green Party’s Elizabeth May, a floor-crossing by a Conservative MP earlier this fall, and a handful of abstentions on the evening of the vote.
When asked if he had any concern about the budget gaining approval, Sheehan said he was primarily worried about workers in his riding and beyond.
“My concern was for the steel workers, the forestry workers, the people working in the mining industry, the aluminum industry – but in particular in my riding of Sault Ste. Marie–Algoma,” he said.
Had it been shot down, a Christmas-time election would have been triggered – something Sheehan said would slow needed aid to workers and industries across the country.
“I thought it was very irresponsible for the opposition to be voting against the budget – that would cause an election – because when that happens . . . everything is slowed down in government,” he said.
“We need things to be sped up.”
Barring a few exceptions, the Conservatives voted en masse against the budget – and Sheehan said opposition leader Pierre Poilievre is “trying to protect just one job – his own.”
“I was disappointed in that, but I was glad that we were able to get this passed, because Sault Ste. Marie is at ground zero in this trade war, and we need the support that is contained in that budget.”
Read more about the 2025-26 federal budget on ParliamentToday.