OTTAWA – November 5, 2026
Finance Minister François-Philippe Champagne will table the Carney government’s second federal budget this afternoon, with officials framing the document around affordability, investment and economic security.
The budget is scheduled for 4 p.m. in the House of Commons. It carries the title “Masters of Our Destiny.” Champagne has said the plan will show how Canada invests in growth, supports small and medium-sized businesses, and strengthens domestic capacity amid ongoing trade tensions with the United States.
Prime Minister Mark Carney has spent much of his first 20 months in office emphasizing capital investment and major projects. The budget is expected to provide further detail on the Canada Growth Fund, a Crown-controlled vehicle that takes ownership stakes in selected projects, and on a productivity mega-deduction that allows businesses to write off eligible capital investments in the first year. The government has estimated the deduction will cost roughly $36 billion over five years.
Affordability measures are under close watch. Champagne has described the cost of living as a priority. Opposition parties have pressed for concrete relief on housing, food and energy prices. Economists have noted that new spending since the spring economic update already totals nearly $140 billion over the next decade across various files, raising questions about the path back to a balanced operating budget.
Defence spending is another major item. Carney has pledged to raise defence outlays to 4 per cent of GDP by 2030 and 5 per cent by 2035 to meet NATO targets. Canada currently sits near 2 per cent. The budget is expected to outline how the government will fund the increase without further widening the deficit.
The deficit itself remains the headline number. The spring economic update projected roughly $65 billion for the current fiscal year. Higher oil prices have boosted federal revenues, but new spending on tariff-hit industries such as autos and steel pushes in the opposite direction. The Parliamentary Budget Officer has projected a deficit near $63 billion this year and $70 billion next year.
Trade diversification appears in the framing. Champagne has said the budget is about building Canada’s economy rather than reacting solely to the trade war. The government has set a goal of attracting $500 billion to $1 trillion in private investment over five years through tax incentives and infrastructure. Whether the document delivers specific trade-corridor or critical-minerals measures will be examined once the full text is public.
Small-business tax measures are also expected. Champagne told a business audience earlier this week that the budget would include tax changes aimed at smaller firms, though he declined to give details in advance.
The document will be the second consecutive fall budget after the government shifted from the traditional spring cycle. Opposition parties have said they will scrutinize both the size of new spending and the absence of broad-based tax relief. The Liberals hold a minority and will need support from at least one other party to pass the budget.
Canadians will receive the full fiscal tables this afternoon. Analysts will then track how the government reconciles its investment ambitions with the constraint of rising interest costs on the federal debt.
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