OTTAWA — The federal government tabled its 2026 budget on Thursday, Nov. 5, with Finance Minister François-Philippe Champagne presenting a plan built around $142.1 billion in net new measures and a deficit that is projected to hold roughly steady in the near term before narrowing later in the decade.
Speaking ahead of the tabling, Champagne said Canada has the elements it needs to grow. Days later, he defended the numbers publicly, saying the government’s deficits are lower than previously projected. According to BNN Bloomberg, last year’s deficit was revised down by about $27.5 billion compared with the spring forecast, largely because revenues came in well above expectations.
Where the money goes
Roughly two-thirds of the new measures are aimed at growing the economy, with the remaining third focused on affordability, housing and homelessness, based on figures reported by BNN Bloomberg. Scotiabank’s analysis highlights a roughly $36 billion “productivity” deduction that would allow businesses to write off most qualifying investments immediately, as well as lower tax rates on new business investment.
On the household side, the budget includes an $11.2 billion strategy to address homelessness, a top-up for Build Canada Homes to support non-market housing, and a one-time 50 per cent increase to the Groceries and Essentials Benefit, to be paid in early 2027. Scotiabank estimates the increase at about $339 for an individual and $679 for a family. The budget also extends federal fuel excise tax relief and sets aside money for home energy retrofits.
Ottawa has also allocated $600 million for Canadian content, and the culture minister has said streaming companies will eventually be required to pay their fair share. Postage is going up, and Canada Post says higher international and U.S. mail costs will help sustain its operations. The government spent $19 billion on external consultants last year.
Criticism from the opposition
Conservative Leader Pierre Poilievre argued the problem is the overall level of spending, not its purpose, and pointed to debt interest as the fastest-growing item in the budget. The Conservative finance critic has said the spending is not making a difference on the ground.
NDP Leader Avi Lewis said the budget favours corporations and foreign investors, and criticized large tax deductions as benefiting billionaires. Some economists, meanwhile, described the document as an attempt to restart economic growth.
The fiscal picture
BNN Bloomberg reports that next year’s deficit is expected to rise above $62 billion and stay above $50 billion through 2030. Debt interest is projected to reach $60.2 billion next year, more than the planned $57.4 billion in health-care transfers to the provinces, and to exceed $85 billion by 2030. Scotiabank notes that net debt is expected to stabilize at about 40 per cent of GDP, and it flags inflation, execution capacity and trade uncertainty as the main risks.
What it means for Edmonton
Edmonton’s mayor welcomed new federal funding for mental health and homelessness, according to Taproot Edmonton’s Nov. 9 newsletter, but said the city wants clear planning on how and when the money will reach the ground. Details on how funds would be delivered to municipalities were not available at the time of writing.
Edmonton Herald will continue following the budget and report on how it affects Albertans.
Additional sources: BNN Bloomberg · Scotiabank Economics
Source: CTV News
Source: Taproot Edmonton, The Pulse
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