Ottawa's spring economic statement includes new funding, deficit updates, and a few spending surprises. The federal government aims to leverage better-than-expected economic growth to boost spending and reduce its deficit forecast.
Fiscal Picture Improves
Finance Minister François-Philippe Champagne's debut spring statement shows the government taking advantage of stronger economic growth in late 2025 and higher tax revenue from surging oil prices. The 2025-26 deficit forecast is now $66.9-billion, $11.5-billion lower than projected in last fall's budget.
Key Spending Highlights
Prime Minister Mark Carney's Liberals promoted over $54-billion in new spending and tax breaks over six years. Here are five highlights:
- Skilled Trades Training: Up to $6-billion to train 80,000-100,000 new Red Seal-certified workers by 2030-31, including $10,000 wage incentives for SMEs, $400 weekly apprenticeship grants, and $5,000 completion bonuses.
- Tax Cuts: Reduced fuel taxes (10 cents/litre gasoline, 4 cents/litre diesel), increased GST credit, and lower Canada Pension Plan contributions (base rate from 9.9% to 9.5%), saving $133/year for average earners.
- Sovereign Wealth Fund: Plans to monetize federal assets like airports through lease extensions and development rights to fund a $25-billion sovereign wealth fund.
- Defence Procurement: A new cabinet minister and $103.8-million over five years for a Defence Investment Agency, plus $2.3-billion for Ukraine and $110-million to counter foreign interference.
- Sports Funding: $755-million over five years starting 2026-27 to boost sports participation and events, with $118-million annually thereafter.
Other Notable Items
The statement also reiterated arts funding for Toronto's Harbourfront Centre but offered little new for culture, sparking expected backlash from artists. King Charles's U.S. state visit called for recommitment to NATO alliances. Indigenous organizations in the Northwest Territories urge restored dental care. Abroad, Western governments court Eritrea despite human-rights concerns. Former FBI director James Comey faces new indictment. Ontario's Bill 33 threatens postsecondary media funding. FIFA's World Cup control cancels events in Toronto and Vancouver.
