Prime Minister Mark Carney’s government unveiled a blueprint Tuesday to counter rising U.S. protectionism and bolster a sluggish economy through tax incentives to spur corporate investment, targeted federal spending and cuts to the public service.

Mr. Carney’s first budget, presented to the House of Commons by Finance Minister François-Philippe Champagne, lays out new spending of $89.7-billion over five years and roughly $56-billion in savings from cuts to the public service and program spending. Mr. Champagne said the budget could spur $1-trillion of investment.

The budget says the 2025-26 deficit will be $78.3-billion and is projected to drop to $56.6-billion by 2029-30.