The federal government’s Budget 2026 outlines new spending measures aimed at making life more affordable and encouraging business investment, including a tax incentive called the Productivity Mega Deduction. The budget also projects continued deficits, rising federal debt, and changes in tax revenues and debt-servicing costs over the coming years.
The following seven charts illustrate some of the budget’s key figures, including spending on affordability programs, projected tax revenues, federal debt and interest costs, and how the Productivity Mega Deduction is expected to reduce taxes on new business investments in different industries.
Budget 2026 shows baseline funding in 2026-27 of $31.2 billion for the Canada Child Benefit, the largest affordability program, followed by $20.5 billion for the Guaranteed Income Supplement, $11.1 billion for the Canada Groceries and Essentials Benefit, and $10.9 billion for Early Learning and Child Care. New measures over five years include $11.2 billion for an initiative to put Canada on the path to end homelessness, $4.1 billion added to the groceries and essentials benefit, and $2 billion for home retrofits and energy bill savings….