Champagne defends fiscal track as defence, infrastructure spending ratchets up

Finance Minster François-Philippe Champagne says the Liberals are keeping federal finances under control even as key defence and infrastructure spending details remain under wraps.

Champagne told reporters today that Ottawa has been “very transparent” with Canadians about the pace of federal spending and the need to focus on what the government can control in a period of geopolitical instability.

He said decisions like ramping up defence spending to meet rising NATO targets and a recent commitment of public funding for a proposed pipeline from Alberta to the B.C. coast will help lift the economy.

The finance minister acknowledged there are still details to be ironed out on what the public contribution to the pipeline proposal will look like.

Champagne said the government has been clear about the direction of defence spending and claims Canada is on track to meet NATO targets, which will rise to five per cent of GDP by 2035.

Ottawa’s published fiscal projections only show commitments out to 2031, and the parliamentary budget officer and other critics have flagged a lack of detail around the proposed path to the five per cent target.

This report by The Canadian Press was first published July 6, 2026.

By Craig Lord | Copyright 2026, The Canadian Press. All rights reserved.