Budget 2026 in Charts: Where the Money Is Going, Tax Savings, and Deficit Levels
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.
TL;DR
- Budget 2026 includes new spending for affordability and business investment, featuring the Productivity Mega Deduction tax incentive.
- The budget projects continued deficits, rising federal debt, and changes in tax revenues and debt-servicing costs.
- Largest affordability programs include the Canada Child Benefit ($31.2 billion), Guaranteed Income Supplement ($20.5 billion), Canada Groceries and Essentials Benefit ($11.1 billion), and Early Learning and Child Care ($10.9 billion) in 2026-27.
- New five-year measures include $11.2 billion for homelessness initiatives, $4.1 billion for the groceries and essentials benefit, and $2 billion for home retrofits.