Budget 2026: Carney spends big with ambitious, risky plan for Canada

It's the finance minister's budget, but has Mark Carney written all over it. It's the next big step in our action plan to make this country more independent, more sovereign. It's big on business to make Canada less reliant on the U.S. I think this is going to go down as a moment in history where we seize the opportunity, seize the moment. Yes, yes, yes, yes, yes. The government's spending big on major tax breaks and incentives to try and keep companies in Canada and jumpstart investment. Business, both large and small, will be able to immediately... The full cost of most new investments, Mr. Speaker, that's a game-changer for small businesses across our nation. Thank you very much. Thank you very much. They call it a productivity mega-deduction, and it has a $36 billion price tag over five years. That's the biggest ticket item in the budget and a gamble. This government's making a big bet on a combination of that investment plus the money they're borrowing to kind of jumpstart this economy and get it off of this anemic footing that it's been on for a while. There's also $5 billion to help bolster national pride. That includes money to produce Heritage Minutes, build new hockey rinks, and Canadian musicians, artists, and storytellers can earn up to $45,000 tax-free. But the government's also under pressure to make life more affordable. It's spending $22 billion on targeted short-term measures for some. That is real money in their pocket. That's going to reach the Canadians who need it most. But the NDP says companies are getting the biggest breaks. Where is the mega-deduction on my cell phone bill, on my rent or mortgage? It's missing in action. Added all up, the government's booking $151 billion in new spending over five years and running a more than $62 billion deficit, which they project won't drop much over the next five years. This prime minister will inflate the cost of fuel. Food and homes. This is a costly credit card budget that Canadians can't afford. Debt is going up and so is the interest Ottawa pays on it. It's expected to be the fastest growing government expense in five years. Ashley Burke, CBC News, Ottawa. While the bulk of the budget looks to the future, it's also attempting to help some lower income Canadians in the weeks and months ahead. Nisha Patel now with some of the changes aimed at tackling affordability. As life gets more expensive, Ottawa says it's spending billions to help Canadians keep up. The Canada Groceries and Essentials Benefit is getting a one-time 50% top-up. That means over the year, single Canadians can receive up to $1,290, a couple with two kids, about twice as much. It's another short-term measure like the gas tax exemption which cuts the price per litre by 10 cents though it will be phased out between January and April. We'll take any of the rebates we can get, right? I think we could all use a little bit of wiggle room. Can I get a little bit next to the line? The budget puts more money into the pockets of lower-income workers, caregivers and artists. But the changes are targeted. It's not like they're doing nothing. But compared to the big picture of what this budget is about, affordability is not top of mind. Ottawa is pledging to spend more than $11 billion over four years to end homelessness in a decade. Those funds will be earmarked for new transitional housing, rent subsidies and mental health and addictions care. It's definitely trending in the right direction, which is great, but a lot more needs to happen. And to accelerate home building, an additional $13 billion. So far, experts say progress has lagged. We are not building enough housing, and we're not building enough of the right kind of housing to meet the needs of all Canadians. Beyond the big-ticket items, some tidbits to note. Stamps are going up 40% to $2 each. And the government's extending free access to national parks for another summer. Admission to national museums for children and youth will also be free permanently. I think the most important thing is how people are living day to day. There are some major tax changes in this budget too. Canadians will no longer have to convert their RRSPs to registered retirement income funds. And Ottawa is moving the deadline for filing and paying taxes to May 15th. Nisha Patel, CBC News, Ottawa. Okay, so let's go right to Chief Political Correspondent Rosemary Barton. So, Rosie, sticking with affordability first, what is the strategy here? Well, it is obviously the most important top-of-mind issue for Canadians, as you all know, Adrienne, and it's why that grocery benefit, aka the GST rebate, is being topped up again, why they're doing things like improving the workers' benefits so more people can qualify, why they're investing further into housing. These are short-term, immediate measures that people really need, people who can't afford gas, food, rent. And politically, it is very much non-negotiable for a government in this moment to not respond to those pressures. What happened in the midterm on Tuesday in the U.S. when you don't respond to those concerns. The other part of the budget speaks to the Prime Minister's vision of strengthening the economy, trying to attract further investment through what the government calls an investment super cycle. Essentially, roll the dice, spend a lot of money in hopes that that pays off with private investment, jobs and economic growth in the future. But that certainly comes with risks. Yeah, it does, because the investment in the economy will not... Pay off directly and immediately for Canadians. So how well does the government manage those expectations, communicate those things? And then the second is the deficit and the deficit spending. Yes, the government made some cuts. Yes, the government revenue went up because of the price of oil. But it's choosing to spend more. And that's increasing the debt and debt servicing charges, which will total $60 billion next year. That's just debt servicing. And that's what the Conservatives are already attacking. While the government says, no, these are investments that are needed. needed to strengthen the economy. So there's risk in this kind of spending. But given the popularity of both the government and the prime minister, they have the political capital to do it, at least for now. For now. All right. That is chief political correspondent Rosemary Barton.