The federal government has introduced a budget designed to encourage investment and fight the impact of tariffs.
Finance Minister François-Philippe Champagne tabled the 2026 spending plan in the House of Commons on Thursday afternoon, featuring additional spending and tax breaks to address current economic challenges.
The budget has $142.1-billion in new spending and tax incentives designed to make Canada's economy more self-sufficient and less dependent on the United States.
Champagne said help is available for sectors affected most by tariffs imposed by the Trump administration.
"Steelworkers in Hamilton, aluminum workers in Saguenay, forestry workers in British Columbia, and auto workers in Windsor and Oshawa are affected and understandably worried," said Champagne in his remarks in the House. "Canada's new government has one simple message for them today. We will be there for you with whatever it takes for as long as it takes. To date, we've provided $44-billion to help our workers, unions, and businesses protect jobs, retool, and find new markets."
The projected budget deficit for 2026-27 is $62.3-billion, which Champagne said was $3-billion lower than the figure in the spring economic statement. However, Canada will carry a deficit of at least $50-billion through 2030-31.
Other components include a plan to encourage investment by lowering the marginal effective tax rate on new business investment from 13 per cent to 6.4 per cent.
Another $4-billion has been spent on measures to enhance Canadian arts and culture, support public broadcasting, and support local journalism.
Some $44.7-billion will be invested over 11 years to help end homelessness and expand non-market housing.
In the 2027-28 fiscal year, $1.2-billion will be used to expand agreements with provincial governments, including Ontario, for home and community care, as well as mental health and addiction.
The opposition responded to the spending plan, with Conservative Leader Pierre Poilievre pledging that the Tory caucus will vote against the budget.
Poilievre said the budget is taking money away from Canadian families who are already struggling.
"Carney’s Costly Credit Card budget adds $765-billion in new debt, meaning higher inflation and interest today and higher taxes tomorrow," posted Poilievre on social media. "Canadians will pay more for food, fuel, and homes. Budget should be named Mastered by Debt."
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The Conservatives also took issue with the Liberals' immigration plan.
"The Liberals’ plan sets permanent resident admissions at 380,000, and 370,000 new temporary residents in 2026," said Conservative Shadow Minister for Immigration, Refugees, and Citizenship Michelle Rempel Garner. "These are still among the highest levels in Canadian history, after the out-of-control years of 2022 to 2024 left the country no time to recover. Canadians were told to expect a sustainable plan. But based on today’s numbers, what Mr. Carney meant by ‘sustainable’ is sustainable for corporate profit models, not for workers or Canada’s social infrastructure."
Federal NDP Leader Avi Lewis said the budget only benefits people with deep pockets.
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"It [the budget] talks a lot about affordability but does little to actually lower your costs," said Lewis on social media "The single biggest item in the budget is a 'mega deduction' for corporations, with a price tag of $36-billion over five years. Fifty per cent more than all of the 'affordability measures' combined. But where is the mega deduction to your grocery bill, or your rent?"
Key budget measures are available on the official government website.
