Prime Minister Mark Carney’s government has introduced a budget to encourage investment and make life more affordable, while forecasting a C$62.3-billion deficit for the 2026–27 fiscal year.
The plan was presented on November 5. It is called Masters of our Destiny. It comes as Canada faces trade tensions with the United States and broader economic uncertainty.
The government says it wants to encourage businesses to invest, help them produce more with their resources, expand trade and strengthen Canada’s economic independence. The projected deficit is lower than the C$65.3-billion forecast made in April. However, the budget still expects deficits in the coming years.
The government says the deficit compared with the size of the economy is expected to keep declining. It expects federal debt compared with the size of the economy to stay around 40 per cent over the next five years. To encourage investment, the plan proposes a Productivity Mega Deduction for businesses.
It also proposes a C$25-billion Canada Strong Fund. For households, the budget proposes a one-time 50 per cent increase to the GST credit early next year. The budget describes this increase as the Canada Groceries and Essentials Benefit supplement.
The budget also commits C$11.2 billion over four years to measures intended to help address homelessness. These measures include supportive and transitional housing. The government says the measures will support growth and make life more affordable.
The deficit forecast shows the scale of borrowing the government plans to continue while pursuing those goals.