Canada has introduced CAD 142.1 billion in fiscal measures over five years

Canada’s government unveiled C$142.1 billion in new fiscal measures over five fiscal years in its 2026 budget, with annual costs rising from C$15.2 billion in the first year to C$33.8 billion, C$30.9 billion, C$30.4 billion and C$31.8 billion in the following years. The budget projects a C$62.3 billion deficit for fiscal 2026–2027. Spending is allocated to attracting investment, expanding infrastructure, easing living costs and supporting industries affected by tariffs, and includes tax relief as well as direct outlays. The plan matters because it signals a sustained fiscal expansion that could lift domestic demand while widening the deficit. What to watch next is the fiscal 2025–2026 deficit figure and how much of the package is delivered through tax measures versus direct spending.