Mark Carney's big-spending budget pours billions into housing, business and benefits as deficits persist - Toronto Star

Prime Minister Mark Carney’s 2026 budget aims to show that an economy-obsessed government has put Canada’s long-standing social gaps near the top of the priority list.

Finance Minister Francois-Philippe Champagne arrives for a meeting of the federal cabinet ahead of the tabling of the federal budget on Parliament Hill in Ottawa on Nov. 5, 2026.

OTTAWA — Prime Minister Mark Carney’s 2026 budget aims to show an economy-obsessed government has put Canada’s long-standing social gaps near the top of the priority list with an $11.2-billion fund to “end” homelessness, billions in new funding for Indigenous infrastructure and supports, and a boost in tax benefits for low-income workers and families.

But the spectre of the trade war with the U.S. that has stalked Carney’s time in office still looms large in the new fiscal blueprint.

Booking $151.5 billion in new spending over the next five years, the government is pressing forth with massive business tax breaks designed to reduce Canada’s dependence on its largest commercial partner and increase profits for private investment inside this country.

Business and economic growth measures account for two-thirds of the new spending, while individual supports merit about a third of new commitments.

Tax breaks, faster project approvals and less red tape win praise from industry leaders. Labour and economists say their priorities are overlooked.