The federal government says Budget 2026 keeps Canada on track to balance its day-to-day operating spending with revenues by 2027-28, a year ahead of schedule, while mobilizing about $400 billion in capital investment over six years.
Finance Minister François-Philippe Champagne released the budget, titled “Masters of our destiny,” on Thursday. The government says it lowers growth in direct program spending from eight per cent to two per cent and includes $22 billion in new affordability measures. It also says the deficit-to-GDP ratio remains on a declining path.
On the economy, the budget proposes major tax changes, including a new Productivity Mega Deduction and a Canada Strong Fund, which the government says will help attract global investors. It also includes funding for a Canada Electricity Strategy to double grid capacity by 2050, and investments in nuclear energy and critical minerals.
For households, the budget puts Canada on a path to end homelessness in 10 years, in co-ordination with municipalities, provinces and territories. It enhances the Canada Groceries and Essentials Benefit with a 2027 supplement and expands Nutrition North Canada. It also makes the Canada Caregiver Credit fully refundable and supports one million energy-efficient home retrofits.
The budget includes a flagship Canada 160 Fund, a renewed Canada Strong Pass, permanently free admission to national museums for children and youth under 25, and $1.5 billion to expand, retrofit and rehabilitate ice rinks and recreational facilities across the country. It also includes more than $50 billion in investments to advance reconciliation with Indigenous peoples.
“Being masters of our destiny is about having the confidence to build on our strengths and shape our own future,” Champagne said. “Canada has the resources, talent and ambition to succeed. Budget 2026 builds on those strengths by unlocking investment, building more at home, strengthening our energy and natural resource advantage, and helping Canadian businesses grow and compete on the world stage. That’s how we will create good jobs, make life more affordable, and build a stronger, more resilient and more united Canada for generations to come.”
The government says the economy grew 3.3 per cent in the second quarter, the fastest pace in the G7, and that the unemployment rate has fallen to 6.5 per cent. It says foreign direct investment is at its highest level in nearly two decades, with $98 billion attracted in 2025.
