OTTAWA, Canada — Prime Minister Mark Carney’s Liberal government has unveiled a $142.1-billion economic plan aimed at strengthening Canada’s economy, attracting investment, creating jobs and easing financial pressures on households.
Finance Minister François-Philippe Champagne presented Budget 2026: Masters of Our Destiny on Thursday, November 5, outlining new spending and tax incentives over five years. The budget focuses on economic growth, infrastructure, affordability, energy development and reducing Canada’s dependence on the United States.
Major Investments to Strengthen the Economy
The plan allocates approximately $51.9 billion toward attracting investment and supporting innovation, while $15.1 billion is earmarked for infrastructure projects.
A major feature is the proposed Productivity Mega Deduction, which allows businesses to deduct qualifying investments more quickly. The government says the measure is intended to encourage companies to expand operations, modernize facilities and improve productivity.
The budget also includes more than $50 billion for electricity infrastructure and energy development, alongside investments in nuclear energy and critical minerals. Ottawa hopes these measures will strengthen domestic industries and improve Canada’s competitiveness in international markets.
Affordability Measures for Canadian Households
The government has allocated $30.6 billion toward affordability initiatives, including support for low-income households, housing and energy efficiency.
One key measure is a one-time 50 per cent increase in the Canada Groceries and Essentials Benefit for eligible recipients in early 2027. Eligible single individuals without children could receive up to $339, while couples with two children could receive up to $679.
The budget also proposes making the Canada Caregiver Credit fully refundable and investing in affordable housing, heat pumps and home energy improvements. The government says these initiatives are intended to reduce household expenses and improve access to essential support.
Housing, Jobs and National Development
Housing receives significant attention, with $44.7 billion planned over 11 years to expand non-market housing, address homelessness and improve access to affordable homes.
The government is also investing in artificial intelligence, skills development and Canadian industries, with initiatives intended to create employment opportunities and strengthen domestic production.
Budget Deficit and Economic Outlook
Despite the proposed investments, the federal government forecasts a deficit of $62.3 billion for the 2026–27 fiscal year, with total spending projected at $603 billion.
Ottawa expects economic growth to slow to one per cent in 2026 amid international trade tensions and uncertainty surrounding relations with the United States.
The budget represents Carney’s second federal budget and sets out the government’s approach to economic resilience, affordability and national development. Its proposed measures will now face parliamentary scrutiny and debate.
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