The Liberal government is set to table its 2026 budget Thursday amid continued economic uncertainty and the ongoing trade war with U.S. President Donald Trump’s administration.
It will be the second federal budget under Prime Minister Mark Carney and his first with a majority government, meaning there’s likely to be little drama around the Liberals’ spending program’s passage through the House of Commons.
But the document will provide more details on the government’s deficit plans, the progress on Carney’s push to diversify the Canadian economy away from reliance on the U.S., as well as upcoming major projects — including the new West Coast pipeline with Alberta and the government’s as-yet undisclosed plans to dramatically increase defence spending in the coming years.
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In a pre-budget fireside chat Monday, Finance Minister Francois-Philippe Champagne said the government’s ambition is to dramatically increase investment in Canada. The Liberals under Carney have set an ambitious target of drawing in $1 trillion in foreign direct investment over the coming years.
“At its core, our plan is about changing Canada’s growth model. We are building one Canadian economy, unlocking private investment, raising productivity, expanding our productive capacity, and diversifying our trade,” Champagne said in his prepared remarks.
The budget comes as Carney said talks between Canada and U.S. negotiators over a new trade deal are speeding up, although Champagne said Monday that the budget will have less to do with the U.S. relationship and more to do with building up the Canadian economy.
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