Canada tables Budget 2026 with $142.1 billion in measures

Canada’s Liberal government tabled Budget 2026 on November 5, proposing $142.1 billion in new spending and tax-break measures, largely offset by higher-than-expected federal revenues. The fiscal plan presents investment, economic sovereignty and support for Canadians as priorities, while projecting a $62.3 billion deficit for 2026-27. The projected deficit is $3 billion below the forecast in the April spring economic update. Finance Minister François-Philippe Champagne said two-thirds of the budget’s measures are intended to boost the economy, with the remainder aimed at supporting people facing rising living costs. The government also projects the deficit will decline as a share of the economy through 2029-30 and says it expects to balance the operating budget by 2027-28. The plan includes measures to encourage business investment, including a previously announced productivity tax deduction expected to cost $36 billion over five years. The incentive allows businesses to write off the full cost of eligible machinery and equipment in the first year. The government estimates it will add $22 billion to gross domestic product annually and create 80,000 jobs over 10 years; those...