Spring 2026 Economic Statement Highlights

On April 29, 2026, Finance Minister François-Philippe Champagne tabled the federal government’s Spring Economic Statement (SES). Under Ottawa’s revised budget calendar, a similar fall fiscal update has now been moved to the spring to better align with other industry timelines, including construction. Amid global instability, the statement is an opportunity for the government to provide an update on Canada’s fiscal outlook since Budget 2025, as well as to layer additional policy measures to ‘Build Canada Strong’.

Unlike previous economic statements, this iteration was closely led by the Prime Minister’s office alongside the Ministry of Finance, rather than from extensive input from other Cabinet Ministers. Following a construction-focused budget, the SES furthers the government’s commitment to build, with the following key themes underpinning this update:

• Canada’s first sovereign wealth fund
• Support for workers and young people, specifically in the skilled trades
• Initiatives to enhance Canada’s competitiveness both domestically and internationally
• Measures to address the affordability crisis

This briefing note represents an immediate reaction following the statement. Further comprehensive analysis will be conducted over the coming days, with additional information shared if pertinent.

Fiscal overview
The statement lowers the projected 2025-26 deficit by roughly $11 billion from Budget 2025. While stronger revenues contribute to the improvement, with revenues now projected to be $7 billion higher, the larger first-year driver is lower total expenses, at $10.7 billion, partly due to revised allowances for natural disaster liabilities and delayed spending on some of the previously announced measures. The revenue lift plays a more significant role along the forecasted horizon, reflecting a stronger economic starting point and higher oil prices.