OTTAWA, ONTARIO / ConSynSer / – Prime Minister Mark Carney’s government unveiled a budget on Thursday aimed at strengthening Canada’s economic independence and reducing reliance on the United States. Finance Minister François-Philippe Champagne presented the budget, titled “Masters of Our Destiny.” It outlines an economic transformation to address weak productivity growth and declining private-sector investment. The plan includes Canada’s first national sovereign wealth fund, worth C$25 billion. The budget was tabled in the House of Commons in Ottawa.
The new Canada Strong Fund will invest in Canadian companies and major national projects. Canadians will also be able to invest directly in the fund through Canada Strong Notes, gaining a stake in nation-building projects, according to Finance Canada. The fund will take ownership stakes in major projects and high-growth Canadian businesses. Champagne said being masters of our destiny means having the confidence to build on Canada’s strengths and shape its own future.
The budget projects a deficit of C$62.3 billion for 2026-27, down from C$65.3 billion forecast in the spring economic update. The deficit is expected to ease to C$52.9 billion by 2030-31. Federal debt is projected to stay at about 40% of gross domestic product over the forecast period. The government said operating spending will be balanced with revenues by 2027-28, a year ahead of schedule. The deficit for 2025-26 is estimated at C$39.3 billion, or 1.2% of GDP.
Tax breaks target business investment
A Productivity Mega Deduction will allow immediate full expensing of most new business investments. The government said the measure cuts the marginal effective tax rate on new business investment from 13% to 6.4%. The budget also plans about C$400 billion in capital investment over six years. A National Electricity Strategy will commit more than C$50 billion to double grid capacity by 2050. The government said the deduction could add about C$22 billion a year to GDP over 10 years.
The budget sets aside more than C$22 billion over five years for new affordability measures. They include a one-time 50% increase to the Canada Groceries and Essentials Benefit, paid in early 2027. A single person could receive up to C$339 and a couple with two children up to C$679. Housing measures total C$44.7 billion over 11 years, aimed at ending homelessness and expanding non-market housing. The Canada Caregiver Credit will also become fully refundable, worth up to C$1,260 a year from 2027.
Defence spending and trade diversification
Canada has reached NATO’s target of spending 2% of GDP on defence, the budget says. It is on track to spend 4% of GDP on defence this decade and 5% by 2035. The budget commits C$7.6 billion over five years to Operation REASSURANCE. The budget describes U.S. tariffs as unjustified and says C$44 billion has been provided so far to help affected workers and businesses. Ottawa has responded to U.S. tariffs with its own countermeasures.
Canadian goods exports to markets outside the United States rose by C$33 billion in 2025, according to the government. A further C$57 billion increase is expected in 2026. Canada has 15 free trade agreements in force covering 51 countries. The government aims to double non-U.S. exports by the end of 2035. The budget follows a period of pressure on public finances, including a widening federal deficit last year. Champagne asked all MPs to support the budget.