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Canada

Carney government's 2026 budget raises program spending by $44.2 billion

Higher spending and interest costs in Budget 2026 bear on fiscal policy, borrowing and the federal public service.

Photo: CTV News

What happened

Program spending is set to rise $44.2 billion this fiscal year, from $498.5 billion in 2025-26 to $542.7 billion in 2026-27, an increase of 8.9 percent. The Hub Direct program expenses, including departmental operations, Crown corporations, defence and grants, rise 10.7 percent to $272.4 billion. The Hub Finance Minister Francois-Philippe Champagne defended the budget, saying deficits are lower. CTV News Secretary of State Zerucelli said Budget 2026 keeps Canada on a path to balance day-to-day operating spending with revenues by 2027-28. Government of Canada

Around it

The Hub analysis described the spending increase as on par with the Trudeau years and noted interest costs are heading for $85 billion. The Hub The Hub analysis said the public service shrinks only a fraction of what it grew. The Hub Zerucelli's release said investment is growing, major projects are being built and businesses are reaching new markets. Government of Canada

Sources

  1. The HubCarney’s 2026 budget shows massive government spending on par with Trudeau years
  2. CTV News‘Deficits are lower, that’s a fact’: Finance minister defends budget
  3. Government of CanadaSecretary of State Zerucelli highlights Government of Canada’s investments from Budget 2026 to improve affordability

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