Overview
- Economists widely expect a 2025–26 deficit in the C$70–100 billion range as Finance Minister François‑Philippe Champagne delivers the budget at 4 p.m. EST.
- Departments have been told to find operating savings of 7.5% next year rising to 15% by 2028, with public‑sector unions warning that reductions could translate into tens of thousands of job losses.
- The government will separate operational and capital spending, target balancing the operating deficit within three years, and project a declining debt‑to‑GDP ratio over the forecast horizon.
- Spending plans emphasize housing, ports, electricity grids and critical‑minerals corridors, alongside a marked increase in defence outlays toward NATO benchmarks and higher long‑term defence‑related targets.
- Passage of the budget will require opposition support or abstentions in a confidence vote as the Liberals sit three seats short of a majority, and the Canadian dollar slipped to a seven‑month low ahead of the release.