Explained: This article explains the political background, key decisions, and possible outcomes related to Explained : Politics Insider: Alberta projects $9.37-billion deficit as spending expected to reach record high and Its Impact and why it matters right now.
Hello, welcome to Politics Insider. Let’s look at what happened today.
Coming off a year of depressed oil prices, Alberta is forecasting a deficit for the coming fiscal year that would rival some of the steepest shortfalls of the past decade.
Alberta Finance Minister Nate Horner today tabled the province’s budget with a forecasted $9.37-billion deficit, his second-consecutive budget to put the province in the red after several years of large surpluses.
Matthew Scace and Emma Graney report that the budget will break a law implemented by Premier Danielle Smith’s own government three years ago that aimed to prohibit deficits, except under exceptional circumstances.
At the same time, the province is expected to post record spending of $83.9-billion after a tough year of public-sector bargaining and significant bumps in its education and health portfolios.
The budget arrived one week after Smith telegraphed that tough financial times were coming in the province’s fiscal outlook.
In other news, Robert Fife reports that Prime Minister Mark Carney is being urged to immediately clarify whether he agrees with a senior government official who says India is no longer involved in foreign interference and transnational repression in Canada.
Carney left Canada today en route to India on a trade and goodwill mission where he will hold high-level talks with his Indian counterpart, Narendra Modi. The Canadian Prime Minister is aiming for a reset after years of mistrust between New Delhi and Ottawa.
Carney left behind a political and national-security controversy after a senior government official told reporters that Ottawa does not believe India is still meddling in this country’s domestic politics and orchestrating violent activities against Canadian Sikhs who support a separate Sikh homeland called Khalistan in Punjab.
The senior official spoke to journalists during a background briefing that dealt with the Prime Minister’s trip to India. The Globe and Mail is not naming the official because they weren’t authorized to speak for attribution on the matter.
“I strongly condemn the remarks made by the official,” Liberal MP Sukh Dhaliwal said in an interview Thursday. “This view is disconnected from reality confronting members of the Sikh community across Canada and contradicts assessments by national-security and law-enforcement agencies.”
And, in Toronto today, federal Conservative Leader Pierre Poilievre said that Canada should not declare a “permanent rupture” with the United States in favour of a strategic partnership with China.
Laura Stone reports that in a speech today to the Economic Club of Canada Poilievre said this country’s prosperity and security is inseparable from a stable relationship with the U.S.
Poilievre laid out his vision for handling the continuing trade dispute with the Americans and how Canada can shore up its own economic strength and self-reliance.
Poilievre stressed that Canada should not abandon its long-standing relationship with the U.S., arguing that the American people “are not our adversaries” and that survey data shows strong American goodwill toward Canada.
“That insight captures a reality deeper than any temporary dispute. Canada’s prosperity and security are inseparable from a stable relationship with the United States,” he said.
While his party supports trade diversification – including a full free-trade agreement with India – closer ties with China are not a replacement for the U.S., Poilievre said.
Alberta Premier Danielle Smith answers questions at a news conference in Calgary, Feb. 20.Todd Korol/The Canadian Press
What else is going on
Canadian job growth flatlines in 2025: The finding comes as key sectors of the economy, such as manufacturing, were hit hard by the trade war, weakening labour demand and prompting employers to shelve hiring plans.
Federal government announces $1.55-billion for First Nations children: The funds are being committed to extend Jordan’s Principle, which serves First Nations children, for one year.
Métis artifact from 1920s repatriated from Vatican: Métis leaders, in Gatineau, Que., today unveiled a model dog sled repatriated to their communities after more than a century in the Vatican collection.
Tumbler Ridge students start returning to class: Some students headed back to classes today, just over two weeks after an 18-year-old shooter killed eight people, including six at the local secondary school, before turning the gun on herself.
Ford government unveils Ontario Science Centre designs: Ontario Premier Doug Ford unveiled the winning designs for the relocated Ontario Science Centre planned for Toronto’s waterfront today, charging ahead despite critics and community activists opposing the abrupt shuttering of the facility’s long-time home.
Liberals move forward with nominations as election talk ramps up: The preparations follow two recent polls suggesting that the party is widening its lead over the Conservatives, generating renewed speculation that Prime Minister Mark Carney may wish to call a snap election in the hopes of securing a majority.
On our radar
Prime Minister’s Day: Mark Carney departed Ottawa for the Indian city of Mumbai, beginning a foreign trip through March. 7 that will include a stop in New Delhi, Australia and Japan.
Party Leaders: Bloc Québécois Leader Yves-François Blanchet held a news conference in the Quebec riding of Terrebonne where a byelection is expected soon. In Toronto, Conservative Leader Pierre Poilievre delivered a speech and participated in a fireside chat held by the Economic Club of Canada on Canada-U.S. relations. Green Party Leader Elizabeth May held a news conference on actions she said are undermining Canada’s democratic institutions. No schedule released for Interim-NDP Leader Don Davies.
Ministers on the Road: In the Nova Scotia community of Hunts Point, Housing Minister Gregor Robertson and Energy Minister Tim Hodgson made an infrastructure announcement with Premier Tim Houston.
In Toronto, Canada-U.S. Trade Minister Dominic LeBlanc spoke at the Canadian Club, discussing Canada-U.S.-Mexico trade, major projects and internal trade.
In Halifax, Veterans Affairs Minister Jill McKnight participated in a wreath-laying ceremony at the Fairview Legion Cenotaph. Others present included Premier Tim Houston and Halifax Mayor Andy Fillmore.
Sinclair-Desgagné runs again: The Bloc Québécois today said that Nathalie Sinclair-Desgagné, who came within a vote of winning the Quebec riding of Terrabonne, will run in an expected by-election prompted by a Supreme Court of Canada ruling. The riding has been represented since the past election by Liberal Tatiana Auguste, but she is no longer an MP due to the ruling.
Political Lives, Michael Cassidy: A service will be held in Ottawa on Saturday for former Ontario NDP leader Michael Cassidy, who died in November. Cassidy, who served as an Ottawa alderman in the 1970s, was the provincial party leader from 1978 until 1982. Details on the service here.
Quotes of the Day
The President’s talk of 51st statehood, whether it is a joke or not, is unacceptable. It goes without saying there is zero chance of Canada ever being a part of the United States.” –Conservative Leader Pierre Poilievre, during a speech in Toronto today, to the Economic Club of Canada.
“I want to be Premier forever.” – Ontario Premier Doug Ford, at a news conference in Toronto today, speaks to his affection for his political job.
Question period
Prime Minister Mark Carney is travelling to India to reset relations with that country. Who was the first Canadian prime minister to visit India? For a bonus point, who was the first (postindependence) leader of India to visit Canada?
Scroll to the bottom of this newsletter for the answer.
Perspectives
As election approaches, the PQ begins to soft pedal its referendum plans
Mr. St-Pierre Plamondon did not outright disavow his promise to hold a referendum during a PQ government’s first mandate. But it was hard not to detect a shift in strategy as he soft pedalled his referendum plans for the first time since becoming PQ Leader in 2020.
— Konrad Yakabuski, Columnist
Smith and Poilievre find someone to blame for their problems: immigrants
By a miraculous coincidence, both leaders have lately hit upon a solution to their respective problems. And would you believe it, the solution is in each case exactly the same: blame immigrants.
— Andrew Coyne, Columnist
By threatening to get rid of prison librarians, Canada is not going by the book
Librarians offer simple, human interactions that steer inmates toward healing, and that matters to all Canadians. After all, these inmates will one day be released into your cities and towns – they won’t just disappear into crevices somewhere.
— Tanya Talaga, Columnist
Go deeper
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The answer to today’s question: Louis St. Laurent, Liberal prime minister between 1948 and 1957, was the first Canadian leader to visit India, says the Library of Parliament. He was there on Feb. 21, 1954. The first postindependence leader of India to visit Canada was then-prime minister Pandit Jawaharlal Nehru in October, 1949.