Canada Set to Add $119 Billion to Deficits as Growth Stalls (1)

Canada is set to rack up larger deficits under Mark Carney, who used his first budget as prime minister to inject tens of billions of dollars into defense, housing and major projects intended to help the country increase exports to overseas markets.

Carney and Finance Minister François-Philippe Champagne unveiled a budget on Tuesday that foresees an extra C$167.3 billion ($118.7 billion) in total budget deficits over five years, compared with the last fiscal projection under Justin Trudeau.

The deficits are fueled by the government’s push to direct more federal money into capital projects, but also by a softer ...