Prime Minister Mark Carney is set to announce a new sovereign wealth fund—dubbed the “Canada Strong Fund”—in Ottawa on Monday, marking what he describes as Canada’s first federal-level investment vehicle of its kind.
In a video released ahead of the announcement, Carney positioned the fund as a way to give Canadians a direct stake in the country’s economic future. A sovereign wealth fund is a state-owned investment pool that uses public reserves to invest in assets such as stocks and bonds, typically managed at arm’s length from government.
The new fund is expected to launch with an initial federal endowment, with participation open to Canadian businesses, institutional investors, and individuals. Government sources say the initiative is designed to complement existing institutions like the Business Development Bank of Canada and support major national projects.
The announcement comes just ahead of the federal government’s spring economic update, to be delivered Tuesday by Finance Minister François-Philippe Champagne.
According to senior government sources, the upcoming fiscal update is expected to show a smaller deficit than previously projected, driven in part by higher revenues linked to inflation and elevated oil prices. The last federal budget forecast a $78-billion deficit for 2025–26, narrowing gradually in subsequent years.
Meanwhile, Conservative Leader Pierre Poilievre has urged the government to take a more aggressive fiscal approach, calling for the deficit to be capped at $31 billion and for a clear path back to a balanced budget.
