Muhammad Amanullah | The True Post
Date: November 2, 2026
Conservative Party Leader Pierre Poilievre has called on Prime Minister Mark Carney’s government to eliminate all federal taxes on diesel fuel by Canada Day, arguing that the move would provide Canadians with relief from inflation and rising living costs.
Poiliev submitted five major demands to the prime minister in a letter ahead of the federal budget, scheduled to be presented on November 5.
In his letter, Poiliev urged the government to remove federal taxes on diesel, suspend the Goods and Services Tax (GST) on fuel until the summer, and permanently eliminate the fuel standard tax.
He argued that these measures would help Canadians not only when filling their vehicles but also with everyday expenses, including groceries and Christmas shopping.
The Conservative leader also called on the government to reduce what he described as unnecessary spending and fiscal policies that contribute to inflation. He further urged Carney to fulfil his commitments to reduce the national debt and the budget deficit as a proportion of gross domestic product (GDP).
Reducing Debt and the Deficit Is Carney’s Basic Responsibility, Says Poilievre
Poilievre said fulfilling the commitment to reduce the national debt and budget deficit relative to the size of the economy was a basic responsibility of the Carney government.
He argued that the government needed to take immediate steps to improve fiscal discipline and ease the growing financial pressure on Canadians.
Addressing the prime minister, Poiliev said the government had promised to bring down inflation and make life more affordable, but the cost of essential goods had continued to rise since Carney took office.
In his letter, Poiliev acknowledged that the prime minister could not control developments outside Canada. However, he argued that decisions made by the government domestically had added to the financial difficulties facing Canadians.
Parliamentary Budget Officer Raises Concerns Over Deficit Outlook
The Parliamentary Budget Officer (PBO) has also raised concerns about the government’s fiscal targets.
According to the PBO’s projections, the government may fail to achieve its target of steadily reducing the budget deficit as a share of GDP. Instead, the deficit-to-GDP ratio is expected to increase again during the 2027-28 and 2029-30 fiscal years.
The PBO estimates that the federal budget deficit will reach $63.3 billion in the 2026-27 fiscal year, down from its June forecast of $71.8 billion.
However, the agency projects that the annual deficit could rise to $70.2 billion in the following fiscal year.
Citing these figures, Poilievre criticised the Carney government’s fiscal policies. He claimed that, excluding the extraordinary period of the COVID-19 pandemic, the current government’s budget deficit was the highest in Canadian history.
He also argued that government spending as a share of GDP had reached its highest level since Canada’s debt crisis in the 1990s.
Opposition Focuses on November 5 Budget
The Conservative demands come as Prime Minister Mark Carney’s government prepares to present its federal budget on November 5.
Ahead of the budget, the opposition has called on the government to prioritise measures that provide financial relief to Canadians, lower fuel costs and bring government spending under control.
Finance Minister François-Philippe Champagne, meanwhile, has said the budget will outline the next steps in the government’s plan to build a stronger, more stable and affordable Canada.
The upcoming budget will show what measures the Carney government intends to take on fuel taxes, national debt, the budget deficit and the rising cost of living — and whether any of the Conservative Party’s demands will be reflected in its fiscal plan.
