Canadian Prime Minister Mark Carney's government on Tuesday unveiled a "historic" budget aimed at overhauling an economy that is reeling from US tariffs and expected to slow in 2025 and 2026.

Economists surveyed by the government have lowered their projections. They are now forecasting growth of 1.1 percent this year (down from 1.9 percent a year ago) and 1.2 percent in 2026 (down from 2.1 percent a year earlier).

"This is not a simple transition. It is a rupture, a change of historic significance taking place over a short period. This new reality is transforming our economic foundations," the government said as it released the budget.

Under the proposed 2025-26 spending plan, Canada's deficit would nearly double from last year, reaching Can$78.3 billion (US$55.5 billion) -- as part of

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