Carney to address students as Liberals prepare first budget

Prime Minister Mark Carney is set to deliver an economic address to university students on Wednesday as his minority Liberal government prepares to table its first federal budget on Nov. 4, a fiscal plan that critics warn could either spur a new era of growth or saddle Canada with a sharply higher debt load. The speech comes amid debate over the size of the coming deficit, growing opposition demands for spending restraint and tax relief, and criticism of the prime minister's frequent travel abroad in the run-up to the budget.

Carney has said the address will explain difficult choices ahead and outline how his government intends to build a stronger economy. He has framed the budget as ambitious but affordable, saying the government will "clean up operational expenditures, but we will be investing in Canada." He has also argued Ottawa can use fiscal room to promote growth, saying the government will "use that deficit to grow this economy like it has never seen before."

Independent fiscal estimates differ sharply. The parliamentary budget officer has warned the deficit could reach about 68.5 billion this fiscal year, while Desjardins economists project an even larger shortfall, as...