Liberal leadership hopeful Mark Carney says he'd run a deficit to 'invest and grow' Canada's economy

Liberal leadership hopeful Mark Carney confirmed Sunday that a federal government led by him would run a deficit "to invest and grow" Canada's economy, but it would also balance its operational spending over the next three years.

Carney, a former governor of the Bank of Canada, invoked U.S. President Donald Trump's ongoing threat of sweeping tariffs on Canadian goods to justify his proposed deficit.

The intent, Carney said during an interview on Rosemary Barton Live, is to invest in Canada's economy "at a time when we absolutely have to build as a country."

The taxpayer dollars would "catalyze many multiples of private dollars" to build homes, energy infrastructure, AI systems and trade corridors — "all of which are fundamentally necessary if we are going to grow this economy, irrespective of how President Trump is feeling on one day or another," Carney said.

Carney also said a federal government led by him would balance its operational spending — such as government-run programs, federal transfers to provinces and territories and debt service charges — over the course of the next three years. 

"Where we are willing to borrow is to invest and grow this economy," Carney told Barton. "That is an absolutely crucial point."

The former central banker also discussed his views on several other economic objectives. Carney said he supports "the concept" of a west-east oil pipeline  — an idea that's regained steam from some federal cabinet ministers and Conservative Leader Pierre Poilievre.

"We as a nation need to build some new pipelines for conventional energy," Carney said. He added his government would accelerate approvals for such pipelines and accelerate approvals for clean energy.

Canada is also making a push to dismantle interprovincial trade barriers. Carney said he would "quickly convene" the country's premiers to work on the issue in the service of making "one economy here, not thirteen."

Looming over the Liberal leadership race is Trump's tariff threats and continual talk of annexation, raising the stakes for the federal government as it works to stave off a trade war with the United States.

Carney, who may manage those negotiations in just a few weeks if he wins the leadership race, said he would pick up discussions "where they are" upon taking office.

When asked why he's being reticent to share details of how he would respond to Trump's tariffs, Carney said it's "not a good idea to insert yourself in the middle of a negotiation [and] give conflicting signals."

So far, Carney has pledged dollar-for-dollar retaliatory tariffs — as has his main leadership opponent, former finance minister Chrystia Freeland.

Should Carney win the leadership race, he would become the first prime minister who has never won an election. He was asked by Barton why Canadians should believe he's up to the job.