Canada’s Carney government presented a budget on Nov. 5 that forecasts a $62.3 billion deficit for 2026–27 and proposes major investments and measures to make life more affordable amid economic uncertainty.
The plan, titled Budget 2026: Masters of our destiny, is the government’s second under Prime Minister Mark Carney. It forecasts a deficit about $3 billion lower than the $65.3 billion estimate in April’s spring economic update. Ottawa says it will direct roughly $142 billion in new spending and tax measures toward its priorities.
Those priorities include attracting investment, increasing productivity and reducing household costs. One proposed affordability measure would increase the GST rebate by 50 per cent, with the increase due early next year. The budget also sets aside $11.2 billion over four years for efforts to address homelessness.
Those efforts include supportive housing and mental-health and addiction services. The government says its broader investment plan includes a new productivity tax deduction and a Canada Strong Fund. It also includes measures intended to bring in private investment and support businesses.
The government also plans to invest in expanding the electricity grid, nuclear energy and critical minerals. The budget forecasts deficits in the years ahead. Ottawa says the deficit as a share of the country’s economy is on a path to decline.
The government aims to make its day-to-day operating spending equal its revenues by 2027–28.