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Finance Minister François-Philippe Champagne presented his first federal budget Tuesday and it includes big-ticket items to prop up an economy grappling with major economic disruptions but also cuts to the public service to get the fiscal house in order.

Champagne’s document shows a deficit of roughly $78 billion for the 2025-26 fiscal year — a figure that is lower than some economists had expected but still much higher than what the last Liberal government said it would be before U.S. President Donald Trump launched his trade war.

All told, this budget calls for some $141 billion in new spending over the next five years, which will partially be offset by some $51.2 billion in cuts or a total of $60 billion in cuts and "savings."

The 406-page budget paints a gloomy picture of the country’s economic outlook — unemployment is up, business uncertainty has spiked and productivity is weak.

The budget projects the economy will grow, but not by much — about one per cent a year for the next two years, well below projections made late last year.

“The level of uncertainty is higher than what we have seen and felt for generations,” Champagne said in his budget speech. “Bold and swift action is needed. To weather the storm of uncertainty, we will not lower our sails, that would be un-Canadian. Quite the opposite. We will raise them — to catch the winds of economic change.”

To try and turn things around, the government is pitching massive investments in infrastructure, housing, the military and tax changes to spur business development as Prime Minister Mark Carney drives to bolster Canada’s self-sufficiency and put people to work.

Budget highlights:

$141 billion more over the next five years — offs