Canada's federal budget includes billions for sovereignty and tackling homelessness

Prime Minister Mark Carney has taken advantage of an oil revenue windfall to include tens of billions of dollars in new spending in his second federal budget, which focuses on building national sovereignty and addressing the high cost of living.

"That's what this budget does: it's the next big step in our action plan to make this country more independent, more sovereign," Carney said on Thursday.

"It focuses on growth, on people and that sovereignty, so we can live our lives as we wish."

The budget - titled Masters of Our Destiny - lays the groundwork for a Canada that is less reliant on the US for trade. It also aims to tackle the stubborn affordability crisis by promising billions to end homelessness and build new housing.