In what could be termed as both good and bad news for Prime Minister Justin Trudeau, Canada's ruling Liberal Party is set to return to power and form a minority government for the second straight time. News channels projected on Monday that a minority government would be formed after a tight election race.

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Justin Trudeau, who has led a minority government in Canada since 2019, called an early election hoping his party could capitalise on the handling of the pandemic situation and return with a stronger mandate. Six parties are contesting the election.

Polling over the weekend indicates Liberals and the Conservative Party are in a tight race, with the possibility that Liberals could lose seats in Parliament instead of gaining a majority. Justin Trudeau's main political rivals and some voters have blasted the prime minister for putting his own political interests ahead of the public during COVID-19 times.

Opinion polls indicate no party will gain a majority of seats in the Canadian election. This means for both the front-runners, Liberal Prime Minister Justin Trudeau or Conservative leader Erin O'Toole will govern the country with a minority government.

The possibilities

If Trudeau wins a majority of the 338 seats in the House of Commons, he will remain prime minister.

In Canada, a party needs at least 170 seats for a majority. The Liberals currently have 155 seats.

If O'Toole wins a majority, he would take over as Prime Minister after a two-week transition period.

But winning the most seats isn't always the same thing as winning the right to govern.

To govern, a PM must show that he/she has the confidence of the House of Commons, the elected chamber of parliament.

The incumbent PM has the opportunity to test his/her standing with a vote of confidence if the result is a minority.

That would be the case even if Justin Trudeau wins fewer seats than his rival O'Toole.

If the Liberals win more seats but fall short of a majority, Trudeau would have to rely again on opposition parties.

There is little chance of formal coalition with the left-leaning New Democratic Party or the Greens to pass legislation.

How minority government functions

Minority governments are particularly interesting in parliamentary systems, where the government is responsible to the parliament.

A minority government is one that comprises ministers from one or more political parties who do not simultaneously hold an absolute majority.

In a minority situation, governments must rely on the support of other parties to stay in power, so is less stable than a majority government.

In Canada, most of the time political parties stand on their own and rarely form official coalition governments to form a majority.

Canada has had only one coalition to date and that was in 1917, during World War-I.

(With Reuters Inputs)