Minister of Finance and National Revenue François-Philippe Champagne tabled Canada's 2026 budget Thursday, Nov. 5, combining business incentives and grocery aid as federal deficits are forecast above C$62 billion for two fiscal years.
Budget 2026 puts the shortfall at C$62.3 billion in fiscal 2026-27 and C$62.5 billion in 2027-28. The government aims to cover day-to-day operating costs with revenue in 2027-28, one year sooner than planned before this budget. The deficit is forecast at 1.8% of gross domestic product in 2026-27 and 1.3% by 2030-31. Champagne had previewed the government's economic agenda ahead of the budget in pre-budget remarks.
The Productivity Mega Deduction would let businesses immediately write off a wider range of eligible capital assets, lowering the cost of qualifying investments. The budget says about two-thirds of capital assets would qualify for immediate expensing, up from about 15% previously. The Department of Finance estimates the measure's cost at C$36 billion over five years beginning in 2026-27. Government projections put the annual GDP gain at about C$22 billion and say the measure could support up to an estimated 80,000 long-term jobs over 10 years.
The budget outlines about C$22 billion in affordability measures over five years. A one-time payment in early 2027 would equal a 50% increase in the Canada Groceries and Essentials Benefit for more than 12 million people. Champagne said the added grocery and essentials support would total C$4.1 billion in 2027.
Champagne framed the plan against changes in global trade and supply chains, geopolitical competition and rapid advances in artificial intelligence. He promised continued support for workers and businesses affected by U.S. tariffs, saying, “We will be there for you with whatever it takes for as long as it takes.” He also requested an order of the day to consider the budget's ways and means motions; his speech did not specify a date.
