Prime Minister Mark Carney’s government presented its second federal budget on Nov. 5, projecting a $62.3-billion deficit for 2026–27 and proposing investments and tax measures to support business growth, make costs easier to manage and diversify Canada’s trade.
The budget is titled Masters of our Destiny and includes $142 billion in new measures. The government says the measures are meant to attract investment and make life more affordable. The projected deficit is $3 billion lower than the forecast in April’s spring economic update.
The government says stronger-than-expected growth and revenues are among the factors improving its financial outlook. Ottawa says it aims to match day-to-day operating spending with revenue by 2027–28. It also aims to keep the deficit as a share of GDP on a downward path.
The government’s investment plans include tax incentives for businesses. It also proposes a productivity deduction. The budget sets out a six-year plan for $400 billion in long-term investment.
For households, the government proposes $22 billion in measures to make costs easier to manage, including an extra increase to the GST rebate. The budget also commits $11.2 billion over four years toward efforts to end homelessness. The funding includes supportive housing and mental-health and addiction services.
Deficits are forecast to continue in coming years. The government’s growth and affordability plans will be judged against continued borrowing and uncertainty in global trade.