Federal budget spurs ‘cautious optimism’ in Alberta, as clarity sought on pipeline, other energy implications

Some Albertan politicians say they're optimistic after Prime Minister Mark Carney’s Liberal government tabled its first budget Tuesday, while others are seeking more clarity on several promises being made.

Titled "Canada Strong," the 406-page document details billions in proposed cuts and investments meant to spur growth and productivity, while projecting a deficit of $78 billion for 2025-26.

Calgary Mayor Jeromy Farkas said he’s approaching the budget with “cautious optimism,” highlighting Ottawa’s investments in infrastructure and housing as areas of particular interest to residents of his city.

“I'm very pleased that the Government of Canada has made funding municipalities a priority in today's budget,” Farkas said. “Canadians are looking for real relief from high costs and municipalities are on the front lines of that challenge.”

The federal budget includes a commitment of $51 billion over 10 years for local infrastructure such as housing, roads, water and wastewater, and health facilities; and $7 billion toward a new Crown agency, Build Canada Homes, which will focus on affordable housing.

“As Calgary plans for two million population over the next four years, this budget must translate into real, predictable and accessible funding to support municipal infrastructure, transit-oriented developments and affordable housing,” Farkas said.

Michelle James, the director of policy at local non-profit Vibrant Communities Calgary, said she’s pleased to see social programs, including $10-a-day child care and the Canada Disability Benefit maintained in the 2025-26 federal budget.

“I'm hopeful to see that there's still commitment at the federal level to support low-income Canadians and Calgarians," she said, "and we are really hopeful to see as well that all orders of government can come together and do what they can as well to make sure that people are lifted out of poverty and their well-being is supported.”

Greg McLean, a Conservative member of Parliament for Calgary Centre, told CBC Radio’s The Homestretch that the budget deficit is “loading a whole bunch of debt onto future Canadian taxpayers.”

But McLean said there are several points in the budget he does agree with, like "that the prime minister is actually spending money on defence, because we have to start taking our international obligations seriously and that means funding our military.”

The budget allocates $81.8 billion over five years to “rebuild, rearm and reinvest” in the Canadian Armed Forces.

In an emailed statement to CBC News, Alberta Premier Danielle Smith said the province “is reserving judgment on the budget until we have concluded negotiations with the federal government on a MOU [memorandum of understanding] which we hope to have completed by mid November.”

The premier’s office explained that the MOU being ironed out includes a look at “the bad laws chasing away private investment in our energy sector” and an agreement towards an approval of the province’s proposed Alberta to B.C. bitumen pipeline.

Alberta’s Finance Minister Nate Horner told reporters: “There’s some good, there’s some bad and we’re going to need more clarity,” adding that the budget deficit is “troublesome.”