Prime Minister Carney Moves on Affordability, Promises to “Spend Less, Invest More”

Ottawa — October 10, 2025

Prime Minister Mark Carney announced a new suite of cost-of-living measures today, setting the stage for Budget 2025 with a clear message: the federal government intends to “spend less and invest more.”

According to a statement from the Prime Minister’s Office (PMO), the government’s upcoming fiscal plan will prioritize affordability and long-term economic growth, responding to ongoing public concern over high living costs. The announcement suggests a shift toward spending restraint, while maintaining targeted investments aimed at boosting productivity, housing supply, and clean-growth sectors.

“Canadians are working hard to make ends meet, and our government is focused on making life more affordable while strengthening the economy for the future,” Carney said in the release. “That means smarter spending, stronger investment, and better results for Canadians.”

The announcement did not include detailed fiscal projections, but officials signaled that Budget 2025 will feature discipline on program spending and reallocations toward growth-oriented priorities. Economists have noted that this approach could mark a balancing act between fiscal prudence and sustained investment in key national priorities.

The affordability package is expected to build on existing federal initiatives addressing housing, grocery prices, and energy costs, while laying groundwork for long-term competitiveness heading into 2026.

Political observers say Carney’s messaging is consistent with his background as a central banker — emphasizing efficiency, credibility, and sustainable growth — while acknowledging growing voter anxiety over the cost of living.

The federal government is set to release further details in the lead-up to Budget 2025, expected in the spring.