Follow CPAC on Thursday, Nov. 5 for complete coverage of the 2026 federal budget. Finance Minister François-Philippe Champagne delivers the budget speech in the House of Commons, followed by reaction and analysis.
Finance Minister François-Philippe Champagne says the government's latest fiscal plan will address Canadians' priorities: affordability and economic growth.
On the economy, Champagne told a Toronto audience this week that the budget is about changing Canada's growth model: from unlocking private investment, to raising productivity, to diversifying trade.
The government has pledged a Productivity Mega Deduction and is making immediate expensing permanent; the measures are expected to cut Canada's projected marginal effective tax rate on new business investment from approximately 13% to 6.4%.
And Champagne has also suggested the budget will have more to say for small businesses, which are hoping for a tax cut.
Observers will also be looking at the government's latest fiscal data.
The budget comes just over a week after the Bank of Canada hiked interest rates for the first time in more than three years. The bank also gave an upwards revision to its projections for the Canadian economy. However, that came with a caution of "considerable uncertainty" thanks largely to Canada-U.S. trade tension.
Prime Minister Mark Carney claims that Canada's strong fiscal position will be "absolutely clear" when the budget is tabled.
He has also said the government will balance the operational side of its finances by 2027-28, one year earlier than planned. However, the Parliamentary Budget Officer calculates that is only likely to happen in the 2029-30 fiscal year.
The PBO is also forecasting an overall deficit of $63.3 billion for 2026-27, rising to $70.2 billion in 2027-28; the government's spring economic statement put those numbers at $65.4 billion and $63.5 billion, respectively.
Meanwhile, the official opposition has three key budget demands. Conservatives are looking for the Liberal government to cut "wasteful" and "inflationary spending," abide by its fiscal anchors, and take more action on fuel taxes.
