Briefing binder created for the Minister of Finance and National Revenue on the occasion of his appearances before the Standing Senate Committee on National Finance (NFFN) on June 3, 2026 and the Standing Committee on Finance (FINA) on June 4, 2026

MINFIN Opening Remarks on Bill C-30 – Spring Update Implementation Bill

Senate National Finance Committee

June 3, 2026

Introduction

Colleagues - I would like to thank you all for giving me the opportunity to speak to the Spring Economic Update and Bill C-30, An Act to implement certain provisions of the spring economic update tabled in Parliament on April 28, 2026.

Trust me when I say that, in the other place, even the most crucial legislation can far too often become delayed or sidetracked by partisan bickering and procedural obstruction. On the other hand, the fact that this Committee has decided conduct a pre-study of C-30 shows that you understand the gravity of this moment in our nation's history and the need to review and consider this important legislation in a timely and serious manner. This is what Canadians expect of us and I thank you for it.

Senators, if nothing else, the past few months have revealed that Canadians across the country are navigating a rapidly evolving world, driven by escalating conflicts and trade tensions abroad.

Madam Chair, in response to the spring economic update, you highlighted the progress we have already made—and the important work that remains to be done:

Building a strong Canada while ensuring that progress and economic growth benefit all Canadians across the country.

Our mission is to build a strong Canada while ensuring that progress and economic growth benefit all Canadians across the country.

And that is why we have

• Given Canadians the opportunity to participate in building our economy with the creation of Canada's first national sovereign wealth fund;
• Created new opportunities for young Canadians to contribute to their country through the launch of Team Canada Strong; and
• Made historic investments in community safety, Canadian sport and safe harbours for boats.

While it is true that Canada cannot single-handedly control the actions of other nations, our government focuses on what is within its power to do and acts accordingly: building a strong economy, diversifying our trading partners, ensuring responsible fiscal management and supporting Canadians who are struggling to make ends meet.

I am convinced that Bill C-30 is essential to accomplishing this crucial work and allows us to exert some influence on an unstable geopolitical and economic situation.

Excise Tax Relief

Madame Chair, in recognition of the steep price increases at the pump due to the war in the Middle East, Bill C-30 would temporarily suspend the federal fuel excise tax on gasoline and diesel across Canada, saving drivers 10 cents per litre on gas and 4 cents per litre on diesel from April 20, 2026, until and including September 7, 2026. It would also suspend the excise tax on aviation fuels for the same period.

This will ensure that Canadians receive tangible, immediate affordability relief when they need it most.

Bill C-30 also proposes maintaining for an additional two years the 2-per-cent cap on the inflation adjustment for excise duties for beer, spirits, and wine. It also proposes to continue the temporary 50 per cent reduction in excise duty rates on the first 15,000 hectolitres of beer brewed in Canada for an additional two years.

Combined, those two measures would provide over $30 million in relief to the sector until 2028.

With nearly 1,200 small and independent craft breweries and brewpubs across Canada, representing thousands of jobs across the country during a charged sporting summer in Canada – this represents a vital support.

Extending the RRSP Home Buyers' Plan

Madame Chair, Canada's housing affordability challenges remain a real concern and continue to lock potential buyers out of the market.

Bill C-30 would extend the grace period during which homeowners are not required to start repaying their Home Buyers' Plan withdrawals from their RRSP from two years to five years for participants making a first withdrawal between January 1, 2026, and December 31, 2028.

This will provide up to $4,000 in relief per individual per year for three years over which they are not required to repay the amount into their RRSP – allowing new buyers to focus entirely on other living expenses in their first few years of homeownership.

This adds to the myriad other measures and policies we have introduced to take aim at housing supply and affordability crunches – and speaks to the leadership role our government is taking alongside PTs to make affording a home a reality across the country.

Other Spring Economic Update Measures

Not to be forgotten, Bill C-30 includes an important change to the Canada Pension Plan – reducing the contribution rate in the base CPP from 9.9 per cent to 9.5 per cent, effective January 1, 2027. This will translate into annual savings of about $133 for an employee earning $70,000 a year, with equivalent savings for their employer – all while maintaining existing returns.

Bill C-30 similarly bridges the longer-term building imperative of this government by supporting Red Seal and other skilled workers through a series of proposed enhancements to the Labour Mobility Deduction, which would allow eligible tradespeople to deduct more of their travel and accommodation costs when they take temporary jobs far from home.

Moreover, Bill C‑30 proposes tax changes that allow greenhouse operators to fully deduct the costs of building new facilities in the year they are incurred, rather than spreading deductions over time. This will encourage expansion in greenhouse production, helping boost Canada's year-round domestic food supply and strengthen food security.

It also would allow the government to access data from airports, if required, as we review these critical assets and seek to ensure we are maximizing their value.

Finally, Bill C-30 also proposes amendments to the Bank Act to clarify the review process for certain types of investments in Canadian businesses by foreign banks and their affiliates. This would ensure consistency with how other foreign investments in Canada are assessed to protect sensitive technology, infrastructure, and data.

Conclusion

Senators, in closing, I would like to impress that this isn't just any piece of legislation.

It's a bill that will support key sectors of the economy while ensuring Canadian workers, businesses and families can weather the ongoing storm and emerge better off.

I hope that you will keep these attributes in mind as you commence your study of Bill C-30.

Thank you.

Top Issues: Questions and Answers

Canada Pension Plan

Issue

Will the reduction in the base Canada Pension Plan (CPP) contribution rate from 9.9% to 9.5% also come with a reduction in future benefits?

Response:

• No, there will be no impact on benefits. The 32nd Actuarial Report on the CPP, tabled in Canada's House of Commons on December 8, 2025, showed that the minimum contribution rate in the base CPP—the lowest rate required to financially sustain the plan over the next 75 years—is at least 69 basis points below the legislated rate.
• Canada's Ministers of Finance unanimously decided to return a portion of the surplus in the base CPP to workers and businesses in the form of lower contributions, providing meaningful relief at a time when Canadians continue to face affordability pressures due to the high costs of essential goods, housing, and everyday expenses.
• This change is achieved while maintaining a prudent financial buffer to protect the CPP against future economic shocks or risks.

Issue

Could a reduction in the base Canada Pension Plan (CPP) contribution rate be undone in the future if there is a correction in financial markets? Is it prudent to reduce contribution rates now?

Response:

• To ensure that the base CPP is protected from future negative shocks (e.g., an economic downturn), the proposed reduction in the base CPP would still retain a nearly 30-basis point buffer (between the legislated and minimum contribution rates required to maintain long-term sustainability).
• Maintaining a buffer helps to provide Canadians with certainty, minimizing the probability of having to increase contribution rates or reduce benefits in the future.
• A buffer of roughly 30-basis points exceeds the average buffer of 10 to 15 basis points over the last 25 years. The Chief Actuary will table a report this spring assessing the impact of the proposed premium rate reduction on the financial position of the base CPP.

Canada Transportation Act

Issue

Why is the Government considering airport privatisation?

Response:

• Investment in airports can drive economic growth.
• As signaled in Budget 2025, the Government is taking action to unlock more of the economic potential of Canada's airports and to consider new ways to attract private sector investment.

Canadian Food Inspection Agency Act

Issue

The Bloc Québécois and others raised concerns that requiring the Canadian Food Inspection Agency to give equal consideration to economic impacts and public health could increase food safety risks.

Response:

• Health and safety continue to be a core CFIA priority.
• The CFIA recognizes the importance of having a trusted, science-based regulatory system that protects food, animals, plants, people and the environment.
• The new mandate provision does not change existing health and safety requirements
• These amendments respond to stakeholder requests and recommendations from the House Agriculture and Agri-Food Committee's December 2025 report.

Employment Insurance Act

Issue

The Bloc Québécois may take the opportunity to press the government to make the Employment Insurance Program for seasonal workers permanent rather than only extending it to 2028.

Similarly, NFFN Senators questioned the rationale for not making the changes for seasonal workers permanent.

Response

• The extended five-week measure is meant to help seasonal workers minimise their risk of experiencing an income gap during their off-season.
• The existing five-week measure is set to expire on October 24, 2026. Seasonal workers continue to face uncertain economic conditions caused by tariffs, labour market transformation, climate change, and other factors.
• Extending the five-week measure would ensure continued support for seasonal workers during a period of ongoing economic uncertainty.

Issue

The Conservative Party of Canada may press the government to explain how the proposed extension of the seasonal EI benefit would be funded and what the economic consequences would be.

Both CPC MPs and NFFN Senators have noted broader concerns about the structure of the Employment Insurance Program and the need for reform.

Response

• EI is a critical program that serves millions of Canadians each year when they find themselves out of work, start a family, take time to care for a loved one, or need to get better themselves.
• Going forward, workers need an EI program that continues to work for them.
• This is why our Government is committed to simplifying and improving the EI program to ensure that it meets the needs of the Canadian workforce of today.
• We are exploring ways to continue to improve the program to ensure workers can rely on a strong social safety net, as Canada builds the skilled workforce of tomorrow.

Pest Control Products Act

Issue

The Green Party of Canada and the Bloc Québécois have raised concerns that this measure will weaken protections for human health and the environment.

The proposed new Governor in Council powers can be used after certain previous Ministerial decisions under the Pest Control Products Act where the Minister did not consider the environmental risks to be acceptable.  

Response:

• Under the Pest Control Products Act (PCPA), any pesticide registration decision requires that human health and environmental risks be deemed acceptable. The amendments in C-30 do not change that.
  • Definition of Acceptable Risk: If there is reasonable certainty that no harm to human health, future generations or the environment will result from exposure to or use of the product, taking into account its conditions or proposed conditions of registration.
• The new powers are intended to be used in exceptional, time-limited circumstances where action is needed to protect national or regional economic security or national food security, such as in the event of a major crop failure or supply disruption.
• A conclusion that the risk is acceptable is a science-based decision made by the Minister of Health. All orders allowing the temporary use of a pest control product will be made public.

Further Background on Safeguards

• Additional safeguards related to Ministerial Order of acceptable risk include: 
  • Orders must be made within one year of the Ministerial decision that the environmental risks were not found to be acceptable. 
  • Orders are time-limited (up to three years, with a single extension possible), to support data generation, refined risk assessments, and transition to alternatives. 
  • Orders may include strict conditions (e.g., geographic restrictions, specific use requirements) to further mitigate potential risks. 
  • Orders must be made public. 
  • The Minister may cancel the product's registration if new information emerges, leading to a decision regarding unacceptable health risk or new unacceptable environmental risk (i.e., other than what prompted the Order in the first place). In this case, the Order would cease to have effect.  
  • Once the Order expires, or is cancelled or repealed, the changes made by the Order cease to have effect.

Temporary Suspension of the Federal Fuel Excise Tax

Issue

The Conservative Party has called on the Government to extend the suspension of the Federal Fuel Excise Tax until the end of 2026.

NFFN Senators questioned the effectiveness of the suspension, noting that while it initially reduced gas prices for consumers, prices have since rebounded, potentially contributing to increased profit margins for oil companies.

Response:

• The fuel tax suspension is a bridge to help get Canadians over short-term pressures.
• Following the suspension, fuel taxes declined quickly across Canada.
• The temporary suspension of the 10-cent-per-litre excise tax on gasoline is providing immediate relief to Canadians at the pump, lowering the cost of filling a typical 50-litre tank by up to $5.75.
• Global factors beyond Canada's control continue to put upward pressure on fuel prices. Since the conflict in the Middle East began, global crude oil prices have increased by roughly 44%.

Costing Summary of Bill C-30, Spring Economic Update 2026 Implementation Act

Key Messages

• The total fiscal impact of measures in the Spring Economic Update 2026 Implementation Act is a cost of $3.1 billion over six years (2025‑26 to 2030-31), on an accrual basis.
• The largest expenditure measures in this bill include:
  • Suspending the excise duty relief on gasoline and diesel: $2.4 billion.
  • Extending employment insurance support for seasonal workers: $356 million.
  • Making the employee ownership trust tax exemption permanent: $205 million.

Details & Supplementary Information

Economic and Inflation Narrative

Key Messages

• The Canadian economy continues to adjust to tariffs, trade uncertainty, and higher energy prices. While growth has slowed, the economy has remained resilient, with real GDP increasing 1.9 per cent in 2025—the second-fastest pace in the G7.
• The economy contracted mildly in the first quarter (-0.1%). However, this headline figure overstates the degree of weakness in the economy, as a number of volatile and temporary factors weighed on growth.
• Household spending, business investment, incomes, profits, and GDP per capita continued to grow.
• A recession is more than just two quarters of negative growth. It is characterized by a broad-based slowdown across the economy. We are clearly not seeing this in the data.
• The labour market has remained more resilient than many expected. Adjustment has occurred primarily through slower hiring rather than widespread layoffs, participation remains high, and real wages continue to outpace inflation.
• The conflict in the Middle East drove inflation up to 2.8 per cent in April. However, upward pressures remain concentrated to fuel. Underlying pressures remain contained, with core inflation near 2 per cent.
• Higher fuel prices will keep inflation higher over the next few months. These external pressures are adding to affordability challenges for Canadians, particularly for everyday essentials.
• To provide immediate relief, we introduced a temporary suspension of the federal fuel excise tax on gas and diesel. This builds on other measures, like the new Canada Groceries and Essentials Benefit.
• Canada's outlook remains among the strongest in the G7. Canada's preliminary estimate points to renewed growth in April, and the IMF projects Canada will be the second-fastest-growing economy in the G7 in both 2026 and 2027, behind only the U.S.

Appendix I: Additional Speaking Points re: Technical Recession

• The Canadian economy was essentially flat in the first quarter, with real GDP declining 0.1 per cent at an annualized rate. This follows a drop in the fourth quarter (-1.0 per cent), as U.S. tariffs and trade uncertainty continued to create volatility in trade, inventories, and investment decisions.
• While the headline result was weak, the slowdown was not broad-based.
• Households continued to spend and saw incomes rise, business investment increased for a second consecutive quarter, energy exports strengthened, and corporate profits continued to grow—signs of resilience that should support activity going forward.
• GDP per capita also expanded in the quarter and private domestic demand continued to grow. This is not a recession.
• Private sector economists agree that this current soft patch in headline GDP does not constitute a recession, and CD Howe, the unofficial arbiter of recession in Canada, has not declared one.
• While the core of the economy continued to expand, growth was held back by a small number of volatile factors, such as weapons systems and oil and gas related investments.
• Statistics Canada's preliminary estimate points to 0.4 per cent growth in April, suggesting the economy returned to growth at the start of the second quarter. The IMF projects that Canada will have the second-fastest growth in the G7.
• The global economy is facing many significant challenges from U.S. tariffs to geopolitical conflicts.
• In response, the government continues to focus on what it can control –building a strong Canadian economy, diversifying trade partners abroad, delivering responsible fiscal management, and supporting Canadian households under pressure from everyday expenses.

Appendix II: Details & Supplementary Information

• The headline GDP numbers have been weaker than expected, but they likely overstate the degree of softness in the economy. While real GDP declined over the past two quarters, many of the indicators typically associated with recessionary conditions—including household spending, incomes, business investment, profits, and GDP per capita—continued to improve. The economy is not experiencing a broad-based contraction; rather, it is adjusting to tariffs, trade uncertainty, slower population growth, and moderating government spending.
• Labour market conditions have softened but remain relatively resilient. Hiring has slowed alongside weaker population growth and softer business confidence, but unemployment remains below its recent peak, participation rates remain historically high, and real wages continue to rise. Importantly, labour market adjustment has occurred primarily through weaker hiring rather than widespread layoffs. Since the start of 2025, Canada has created 2.8 jobs per 1,000 people, nearly double the pace in the United States and stronger than Germany, Italy, and Japan.
• Household spending has remained resilient despite elevated uncertainty, supported by rising incomes, strong balance sheets, and a stable labour market. Household consumption grew by 2.4% in 2025 and continued to expand in 2026Q1, remaining one of the most important sources of stability in the economy. Recent indicators suggest household spending continues to expand but momentum is likely to moderate as higher energy costs, elevated uncertainty, and ongoing pressures on lower-income households increasingly weigh on spending decisions
• Business investment remains subdued by historical standards, but underlying conditions have improved. Business investment increased for a second consecutive quarter in 2026Q1 and is becoming increasingly concentrated in productivity-enhancing assets. While confidence remains fragile and investment conditions remain uneven across sectors, strong profitability, supportive financial conditions, growing incentives to improve productivity, and expanding opportunities in energy and export-oriented industries point to a gradual strengthening in investment over time.
• Trade and energy are becoming increasingly important drivers of growth. Expanding energy export capacity, growing diversification into non-U.S. markets, and continued adaptation by Canadian firms are improving the outlook for exports and reducing Canada's reliance on any single market. Although tariff-related headwinds remain significant for some sectors, the medium-term outlook for exports is stronger than suggested by recent headline trade data.
• Inflation has moved higher in recent months, but the increase has been concentrated in energy-related components. Headline inflation reached 2.8% in April and is expected to reach about 3% in the coming months as higher oil prices continue to feed through to gasoline prices. However, underlying inflation pressures remain contained, with core inflation measures near 2% and broad-based price pressures continuing to ease.
• Still, a prolonged disruption could lead to higher prices for other key items. Food prices would be particularly at risk given the importance of energy supplies from the Middle East for the global fertilizer market and their exposure to transportation costs. This would compound recent pressures, including low crop yields, severe weather, transportation costs and other input costs, which have put upward pressure on food prices.
• To help Canadians manage persistent cost pressures, the government is providing immediate relief and enacting long-term structural reforms. This includes the Canada Groceries and Essentials Benefit, as well as reducing key cost pressures where the government can influence prices, such as child care, cellular bills, gasoline costs and parts of the food supply chain.
• Housing affordability also remains challenging, but policy actions are translating into meaningful results. The supply of homes is expanding, driven by purpose-built rental construction. Meanwhile, the 2026-2028 Immigration Levels Plans is helping return population growth to more sustainable levels. Taken together, this has contributed to narrow the housing supply gap. Asking rents for new leases are down around $300 in Toronto and Vancouver over the last two years.
• Looking ahead, the economy is expected to regain momentum gradually throughout 2026, though risks remain tilted to the downside. The drivers that supported activity in recent years—rapid population growth and strong government spending—are contributing less, while household spending, business investment, export diversification, and expanded access to global energy markets are becoming increasingly important. The key question is whether these emerging sources of growth can offset ongoing headwinds from uncertainty, higher energy costs, and weaker confidence.
• The government is making generational investments in housing, infrastructure, defence, productivity and competitiveness. These investments will drive productivity, boost the capacity of Canada's economy and secure a prosperous future for Canadians.

Table 5.1
Real GDP Growth in G7 Countries
per cent

	Quarterly Annualized Growth (2026Q1)	Year-over-Year Growth (2026Q1/2025Q1)
U.K.	2.5	1.1
Japan	2.1	0.4
U.S.	1.6	2.6
Germany	1.4	0.3
Italy	1.1	0.8
Canada	-0.1	-0.1
France	-0.4	0.9

Table 5.2
Forecasts of Canadian Real GDP Growth
per cent

		2025	2026	2027
Department of Finance – SEU 2026		1.7	1.1	1.9
IMF World Economic Outlook – April 2026		1.7	1.5	1.9
OECD Economic Outlook – March 2026		1.7	1.2	1.7
Bank of Canada Monetary Policy Report – April 2026		1.7	1.2	1.6
PBO Economic and Fiscal Outlook – September 2025		1.2	1.3	1.8
Department of Finance – Budget 2025		1.6	1.2	2.0

Productivity Narrative

Key Messages

• Canada's productivity growth lags that of other G7 economies with only 0.3 per cent annual growth over 2014-2024. However, in 2025 Canada's business sector productivity picked up, growing more than 1 per cent.
• Perennially weak productivity growth is closely tied to longstanding weakness in business investment. The most immediate way to jumpstart productivity growth is to address structural impediments and increase investment—in machinery, equipment, innovation, and infrastructure that allow workers to build faster and at a more competitive cost.
• Budget 2025 did exactly this with significant investments in infrastructure and emerging technologies, lower taxes on new investment and research and development, by cutting red tape, and accelerating major projects.
• Building on this momentum, the measures in the Spring Economic Update 2026 will further increase speed and scale of investment. It will mobilize additional capital for nation-building projects through new Canada Strong Fund while expanding skilled trades workforce essential for their construction. It will fund housing infrastructure and improve regulation to support adoption of productivity-enhancing construction technologies.

Details & Supplementary Information

• Canada's productivity growth has been persistently weak and has generally lagged most G7 peers (Chart 1).
• From 2014 to 2024, it slowed to well below its pace over the 1994–2014 period.
• This has contributed to a substantial productivity level gap between Canada and other G7 economies (Chart 2).
• The economic impact of this gap is significant—if Canada's productivity growth had matched the U.S. from 2017 to 2023, the median income of a family with one child would be nearly $10,000 higher.

• Low business investment has been an important reason for our low productivity growth. Investment intensity in machinery and equipment and intangible assets, key drivers of productivity, have been lower than in the U.S for decades. As well, this investment gap has been pervasive across sectors (Chart 3).
• Since 2015, Canada's relatively poor investment performance has worsened. Business investment in Canada has been flat over the past decade, while business investment in the U.S. has risen sharply (Chart 4).
  • Much of this gap has been driven by a retrenchment in capital spending by Canada's energy sector following the sharp decline in global oil prices in 2015, and the contrasting increase in U.S. technology investment in recent years.

• Businesses often perceive the risks and costs of investments in high-risk and innovative assets as outweighing the rewards, a mindset reinforced by structural impediments such as the regulatory environment, limited competition, and scale constraints.
• The most immediate way to jumpstart productivity growth is to address structural impediments and increase investment—in machinery, equipment, innovation, and infrastructure that allow workers to build faster and at a more competitive cost.
• Budget 2025 has begun to advance this goal through the comprehensive industrial strategy—investing in trade diversification, housing and infrastructure, and advanced technologies while lowering taxes on new investment and research and development. It also cuts red tape and accelerates major projects to unlock Canada's full economic potential.
• Building on this momentum, the Spring Economic Update 2026 will further increase speed and scale of investment.
• It will mobilize additional capital for nation-building projects through new Canada Strong Fund while expanding skilled trades workforce essential for their construction. It will fund housing infrastructure and improve regulation to support adoption of productivity-enhancing construction technologies.

Figures for Charts

The following provides further detail about Canada's relative investment performance in productive assets.

Fiscal Narrative and Capital Budgeting

Key Messages

• The Spring Economic Update 2026 delivers on the Budget 2025 commitment to spend less on government operations so we can invest more in Canada's future.  
• The Update confirms that the government's fiscal anchors are being met:
• The operating budget is on track to be balanced by 2028-29; and 
• The federal deficit-to-GDP ratio declines over the medium term, with the deficit projected to decline to $53.2 billion, or 1.4% of GDP by 2030‑31.
• Further, our deficit is $12.6 billion lower over five years than estimated in Budget 2025 – and lower in each year.
• The Spring Economic Update 2026 projects capital investments will increase from $40.5 billion in 2025-26 to $59.3 billion in 2030-31. By 2028-29, capital investments will account for 100 per cent of the deficit.
• Federal debt is firmly under control. As a share of GDP, federal debt is more than a full percentage point lower in every year than projected in Budget 2025 and is on a clear downward trajectory over the long-term, reinforcing Canada's fiscal credibility and resilience.  
• The government is also strengthening parliamentary oversight. Budget 2025 introduced a fall budgeting cycle, giving Parliament—and builders, investors, and government at every level—clearer, timelier information to make better decisions.
• This plan is working, with 70 per cent of Budget 2025 spending for 2026-27 already reflected in the Main Estimates. These include priority investments to:
• Support our armed forces and defend Canada's sovereignty.
• Help young people find and keep good jobs; and,
• Invest in trade-enabling infrastructure to open new global markets.

Details & Supplementary Information

Key Fiscal Metrics from Spring Economic and Fiscal Update

1. The deficit is $12.6 billion lower over five years than estimated in Budget 2025 – and lower in each year.

2. The deficit-to-GDP ratio continues to decline every year, with ratios that are at or better than Budget 2025.

3. The operating budget remains balanced in 2028-29 and beyond.

4. Federal debt as a share of GDP is more than a full percentage point lower each year than what we projected in Budget 2025 and is on a downward trajectory over the long-term.

5. Growth in direct program spending falls from 8% in the past decade (2014-15 to 2024-25) to 2% per cent over the Spring Update horizon (2025-26 to 2030-31) – while major transfers to Canadians and provinces and territories are preserved.

• Direct program expenses ($267 billion in 2026-27) covers two main areas: (i) funding that departments provide for specific initiatives—such as clean economy incentives and infrastructure projects—and (ii) the day‑to‑day costs of running programs and organizations, including personnel. Excluded are major transfers to people, major transfers to provinces, and public debt charges.
• Growth in direct program expenses excluding capital investments averages under 1 per cent whereas growth in capital investment expenses averages 9.7 per cent.

6. Almost half of new measures focused on cost-of-living relief, while continuing to invest for long-term growth.

7. We are on track to save Canadians $60 billion, reducing operational inefficiencies and changing how government works.

• The government is on track to meet the Budget 2025 commitment to save Canadian taxpayers $60 billion over five years – including through a 20% reduction to the $5 billion of annual spending on external management and consulting services announced in the Spring Economic Update.
  • For most organizations, reductions included in Budget 2025 were reflected in the 2026-27 Main Estimates, tabled on February 26^th and detailed in Departmental Plans tabled shortly thereafter.
  • External management and other consulting services represents about $5 billion of the $23 billion spent on professional services professional services in 2024-25 (table below). The broad category isn't the target of the Update measure because it includes defence-related expenditures (e.g., structural design to deliver on major projects), essential service delivery (e.g. health care of veterans and the Canadian Armed Forces), and internal services within the government (e.g., Department of Justice legal advice).

• We are on track to reduce the size of the federal public service to a more sustainable level aligned with Canadian population growth.
  • Between 2019 and 2024 the federal public service population grew at a faster rate than the Canadian population (more than 25% versus 10%). We are reducing the public service from a peak of 368k in 2023-24 to roughly 330k by the end of 2028-29 – a decline of about 40k or 10%, bringing public service growth in line with forecasted Canadian population growth.

8. Canada has one of the strongest fiscal positions in the G7—with low deficits and by far the lowest net-debt-to-GDP ratio. Canada has one of the strongest economic performances, with the second-fastest growth and a leading labour market—with the highest labour force participation rate and second-highest employment rate—both above the United States.

Table 7.8.1
General government deficit outlook, 2006
% of GDP

	General government deficit outlook, 2006 (% of GDP)
Japan	2.0
Canada	2.7
Italy	2.8
Germany	3.8
U.K.	3.9
France	4.9
U.S.	7.5

Table 7.8.2
IMF Real GDP growth outlook, 2026

	IMF Real GDP growth outlook, 2026
U.S.	2.3
Canada	1.5
France	0.9
U.K.	0.8
Germany	0.8
Japan	0.7
Italy	0.5

Table 7.8.3
Labour force participation rate

	Labour force participation rate (latest)
Canada	64.9
Japan	64.0
U.K.	64.0
Germany	61.9
U.S.	61.9
France	57.0
Italy	49.9

Table 7.8.4
General government net debt outlook, 2006
% of GDP

	General government net debt outlook, 2006 (% of GDP)
Canada	10.2
Germany	47.2
U.K.	93.8
U.S.	96.7
France	108.8
Italy	127.7
Japan	136.5

Table 7.8.5
Employment rate

	Employment rate (latest)
Japan	62.5
Canada	60.7
U.K.	60.6
Germany	59.6
U.S.	59.3
France	52.5
Italy	46.8

Sources: IMF April 2026 World Economic Outlook, OECD, Statistics Canada, U.S. Bureau of Labor Statistics

Note: Latest data for labour force participation rates are March 2026 for Canada and the United States and 2025Q4 for all other countries.

Capital Budgeting

• Cumulative capital investment over the 2025-26 to 2030-31 period, inclusive of planned investments in Budget 2025 and Spring Economic Update 2026, is projected to total $331.9 billion on an accrual basis, or $511.9 billion on a cash basis. 
• A summary of definitions and categories of the framework is included below, for ease of reference.

Capital Budgeting Framework – Summary of Definitions & Categories

Objective: Classify federal investments that support capital formation in a consistent and transparent manner, to improve decision‑making, comparability across programs, and alignment with long‑term economic objectives.

Focus is on capital investments that meet the following two criteria:

• Conditionality - funding recipient is required to invest in capital formation to receive the benefit.
• Clear linkage - spending encourages or enables capital investment in identifiable sectors or projects.

Six categories of federal measures are classified as capital investment:

1. Capital transfers: Transfers to other levels of government and organisations expressly intended for the recipient to invest in infrastructure or a productive asset.
2. Capital-focused tax incentives: Tax expenditures intended to incentivise new capital formation.
3. Amortisation of federal capital assets: Expenses recorded to spread the cost of capital assets owned or controlled by the federal government over their useful lives.
4. Private sector research and development: Direct funding or tax incentives for R&D activities that enable commercialisation or scale-up and raise future productive capacity.
5. Support to unlock large-scale private capital investment: Contractual agreements with proponents involving exceptional, significant operating subsidies designed to unlock incremental large-scale private capital investments.
6. Measures to grow the housing stock: Measures that accelerate new housing supply.

Public Debt Charges and Federal Forecast Horizon

Key Messages

Public Debt Charges

• Public debt charges remain low by historical standards, projected at 1.7 per cent of GDP by 2026-27, far below the peak of 6.5 per cent Canadians faced in the 1990s. 
• Public debt charges are the cost of servicing debt accumulated over many years, including past crises.
• Our approach is disciplined—new borrowing is purposeful and targeted.
• We are investing to drive growth, strengthen resilience, and deliver results for Canadians.

Federal Forecast Horizon

• Canada's use of a six-year horizon is fully aligned with international guidance—both the OECD and the IMF recommend medium-term projections of three to five years beyond the budget year, placing Canada squarely within best practice.
• Our approach is comparable with other advanced economies—Australia uses four to five years, New Zealand five years, and the United Kingdom six years.
• Maintaining a rolling medium-term outlook ensures that Canadians receive a clear, forward-looking view of the government finances and spending plans, while providing flexibility to update projections regularly in response to changing economic conditions.

Details & Supplementary Information

Public Debt Charges

• Public debt charges are projected to rise from $54.0 billion in 2025-26 to $80.9 billion in 2030-31.
• As a share of GDP, public debt charges are projected to represent 1.7 per cent of GDP in 2025-26 and 2.1 per cent by 2030-31, remaining near historic lows and well below the peak of 6.5 per cent in the 1990s.
• As a share of GDP, federal debt is more than a full percentage point lower in every year than projected in Budget 2025 and is on a clear downward trajectory over the long-term, reinforcing Canada's fiscal credibility and resilience.
• With the lowest net debt-to-GDP ratio and one of the smallest deficit-to-GDP ratios in the G7, Canada's fiscal position is strong.  

Forecast Horizon

Recommendations from Organizations

• The Organisation for Economic Co-operation and Development (OECD) recommends that "baselines should have a medium-term time horizon of 3‑5 years beyond the budget. Each baseline should be rolled over for an additional new year with each budget."
• The International Monetary Fund (IMF) recommends a "medium-term fiscal framework, which incorporates projections of key macroeconomic and fiscal indicators for two to four years beyond the budget year". In addition, the IMF fiscal monitors present six-year horizons, with the most recent, published in April 2026, illustrating a forecast horizon of 2026-2031.

International Comparisons

• Australia:
  • Publishes five forecast years in the spring. The forecast horizon in the spring budget, tabled May 12, 2026, was 2025-26 – 2029-30.
  • Publishes four forecast years in the fall. The forecast horizon in the Mid-Year Economic and Fiscal Outlook, tabled December 17, 2025, was 2025-26 – 2028‑29.
  • Australia rolls forward its horizon in the spring.
• New Zealand:
  • Publishes five forecast years in the spring. The forecast horizon in the 2025 spring budget, tabled May 22, 2025, was 2025 – 2029. The Spring Budget 2026 will be delivered May 28, 2026.
  • Publishes five forecast years in the fall. The forecast horizon in the half year economic and fiscal update, tabled December 16, 2025, was 2026 – 2030.
  • New Zealand typically rolls forward its horizon in the fall.
• United Kingdom:
  • Publishes six forecast years in the fall. Forecast horizon in the autumn budget, tabled November 26, 2025, was 2025-26 – 2030-31.
  • The UK's Spring Statement was replaced by a "single fiscal event" speech in March 2026. Prior to this, UK published six forecast years in the spring. The forecast horizon in the spring statement, tabled March 26, 2025, was 2024-25 – 2029-30.
  • The UK typically rolls forward its horizon in the fall.

G7 Public Debt Charges Comparisons (All levels of government)

Debt Management Strategy 2026-27

Key Messages

• The 2026-27 domestic borrowing program is projected to be $566 billion, $23 billion lower than projected in Budget 2025 ($589 billion), and $37 billion lower than in 2025-26 ($603 billion).
• The decrease in borrowing compared to Budget 2025 projections is due to a decrease in financial requirements ($16 billion), and a reduction in projected Treasury bill maturities ($7 billion).
• The entirety of the change in 2026-27 borrowing needs will be absorbed through lower T-bill issuance.
• The level of total planned outstanding borrowings, $2,073 billion as at March 31, 2027, is well within the current legislated limit of $2,541 billion under Section 4 of the Borrowing Authority Act (BAA).
• The limit was increased from $2,126 billion as proposed in Budget 2025 and was enacted through Bill C‑15, Budget 2025 Implementation Act, No. 1, which received Royal Assent on March 26, 2026.
• Public debt charges for 2026-27 were 1.7% of GDP (which amounts to $58.7 billion) in 2026-27, below the long-term average of 3.2% over the past 40 years.
• Canada has the lowest net debt-to GDP ratio in the G7 (10% for 2026), according to the IMF.
• Canada is rated AAA by S&P, Moody's and DBRS, and AA+ by Fitch. 

Details & Supplementary Information

Q: Can you provide a breakdown of the domestic borrowing program?

Q: Will the 2026-27 borrowing program change if circumstances shift?

Yes. This DMS provides an updated borrowing plan for 2026-27 from Budget 2025 based on the latest fiscal and economic assumptions.

Although the government retains full flexibility to adjust issuance, additional debt needs are anticipated to primarily be met through changes in Treasury bills. If needed, bond allocations could also be increased. Advanced market notice would be provided to participants in order to maintain a predictable and well functioning market.

Q: Why were all the changes in the borrowing program since Budget 2025 absorbed by the Tbill sector?

The government manages its borrowing program to preserve flexibility while sustaining benchmark liquidity across all tenors.

As the most liquid part of the curve, Treasury bills have the most flexibility in scaling up or down to meet unanticipated cash needs at minimal cost.

Q: What is the Government's average term to maturity? 

The Average Term to Maturity (ATM) of the government's market debt as of April 2026 was 6.4 years.

This is in the range of 6-7 years seen in recent years and represents a prudent balance of cost and risk. It is also within the range of Canada's peers.

Q: What is the amount of outstanding debt stock under the BAA?

The debt stock is projected to be $2,073 billion by the end of March 31, 2027, up from $1,921 billion projected at the end of March 31, 2026. The maximum debt stock under the BAA includes Government of Canada market debt securities, eligible borrowings from agent Crown corporations, and Canada Mortgage Bonds (CMBs) not held by the Government of Canada. 

Q: Is the current borrowing program sustainable?

Yes. Canada benefits from excellent market access, competitive borrowing costs by historical standards, and the lowest net government debt-to-GDP ratio in the G7.

Investor demand at auctions remains strong, supporting sustainability in the borrowing program.

Q: Are the current public debt charges sustainable?

Yes. While market interest rates are beyond government's direct control, the government continues to monitor public debt charges and is committed to maintaining stable and low debt servicing costs over time.

When looking at the public debt charges as a percentage of GDP, that share is near historical lows (1.7 per cent for FY 2026-27), and below the historical average of 3.2 per cent over the past 40 years.

Q: When will the government issue a Transition Bond?

The government remains committed to regular green bond issuances and will explore the development of a sustainable bond framework that would allow the issuance of both green and transition bonds.

Work is underway to develop Canada's sustainable investment guidelines (also known as a taxonomy) by the end of 2026. These guidelines will credibly identifying "green" and "transition" investments and are required to support the development of transition bonds.

International Trade and Tariffs

Key Messages

• The government's primary focus is on diversifying our trade partnerships and attracting investment into Canada. Canada has what the world wants, including strong fundamentals, energy, critical minerals, sophisticated investors, and the most educated population in the world.
• Canada is the only G7 country with a comprehensive free trade agreement with all the other G7 countries.
• Canada will continue to quickly and pragmatically open new markets by seeking new free trade agreements and leverage existing agreements to diversify trade with reliable partners.
• Crucially, we are balancing this diversification with principled, pragmatic re-engagement with China and India, two of the world's largest and fastest growing economies.
• The government is at the table and engaged with the U.S. to resolve outstanding tariffs, as well as on the upcoming CUSMA review, to ensure continued predictability and favourable conditions for trade and investment.
• As Canada's Chief Negotiator Janice Charette said recently, there is likely to be ongoing discussion beyond July 1, and we should expect some turbulence. It is important that we stay the course and secure the best possible deal for Canada.
• The government provided updated fiscal estimates of the various surtax and trade-related relief measures in the 2026 Spring Economic Update.

Details & Supplementary Information

Forecasted net revenues for new measures since Budget 2025

The Spring Economic Update 2026 forecasts $3.3 billion in net revenues over six years from new measures, which includes the Order Imposing a Surtax on the Importation of Certain Steel Goods (Steel Tariff-Rate Quotas), the Steel Derivative Goods Surtax Order, and application of the 6.1 per cent Most Favoured Nation (MFN) tariff on imports of EVs from China.

This includes approximately $8.3 billion in gross surtax revenue over six years, consisting:

• $152 million from the steel TRQs (until June 27, 2026, i.e., prior to extension);
• $7.4 billion from the Steel Derivative Goods Surtax Order; and
• $800 million from the application of MFN tariffs on imports of EVs from China (i.e., expected imports following removal of prohibitive 100 per cent surtax).

Of the $8.3 billion amount, approximately $5 billion is expected to be relieved through remissions and other relief (e.g., Duty Deferral Program, Chapter 99), consisting of:

• $109 million from the steel TRQs; and
• $4.9 billion from the Steel Derivative Goods Surtax Order.

Spring Economic Update 2026: Broad Key Messages

Key Messages

• The Spring Economic Update 2026 advances the government's plan to build a stronger, more independent, and more resilient Canadian economy.
• The Update continues a decisive shift toward rebuilding Canada's productive capacity, with a focus on increasing investment, accelerating major projects, growing strategic industries, and strengthening Canada's competitive environment
• At the same time, it ensures that all Canadians can participate in building Canada strong and share in its success. It delivers targeted relief to make life more affordable, supports workers and young people, and invests in strong, safe communities across the country.
• Key elements include:
  • A new Canada Strong Fund to mobilize large-scale investment
  • Team Canada Strong plan to expand the skilled trades workforce
  • Reducing development charges and modernising building codes to build more homes faster
  • Targeted investments in automotive manufacturing, defence industries, and trade-enabling transportation networks
  • A major investment summit to attract global capital
  • Pausing the Fuel Excise Tax until Labour Day
  • Reducing the base CPP contribution rate from 9.9 to 9.5 per cent
• The government is taking action while maintaining Canada's strong fiscal position. Projected deficits in the Spring Economic Update are lower than those projected in Budget 2025. Canada remains on track to balance day-to-day operating spending against revenues by 2028–29 and to keep the deficit-to-GDP ratio on a steady downward path.

Affordability Measures Overview

Key Messages

• Direct support for household budgets:
• The government has made the National School Food Program permanent—beyond the initial commitment of $1 billion over five years.
• The new Canada Groceries and Essentials Benefit will provide $11.7 billion in additional support over six years to over 12 million individuals and families.
• Nearly 22 million Canadians will benefit from tax relief of up to $420 per person, saving two-income families up to $840 this year.
• Actions to reduce key cost pressures:
• More than 6.5 million Canadians are covered under the Canadian Dental Care Plan, reducing expenses while providing essential oral health care services.
• As part of the National Pharmacare Program, agreements with British Columbia, Manitoba, Prince Edward Island, and Yukon are making a range of contraception and diabetes medications free. 
• The government has temporarily suspended the federal Fuel Excise tax on gasoline, diesel, and aviation fuels providing over $2.4 billion in total tax relief for Canadians.
• Measures that address the structural factors behind affordability:
• The government is improving housing affordability through Build Canada Homes and GST/HST rebates for first-time home buyers for new homes up to $1.5 million and is proposing to immediately provide $1.7 billion to provinces and territories to implement measures to increase Canada's housing supply. 
• Other measures include strengthening food supply chains, and launching a Whole-of-Government Competition Plan to ensure that competition is prioritized throughout the federal government's policies.

Details & Supplementary Information

National School Food Program 

Originally announced on April 1, 2024 with an investment of $1 billion over five years, the program aims at providing meals to 400,000 more kids every year, beyond those served by existing school food programs. In March 2025, all 13 provinces and territories have signed agreements with the federal government to flow funding until March 2027. The rollout of the program's distinctions-based funding for First Nations on reserve as well as Inuit, Métis, and Modern Treaty and Self-Government agreement holders remains ongoing.  

In Budget 2025, the program received permanent funding of $216.6 million per year, starting in 2029-30.   

Bill C-15 (Budget Implementation Act, 2025) enacted the National School Food Program Act, which sets out the Government of Canada's vision for the National School Food Program and commits to maintaining long-term funding to provinces, territories, and Indigenous peoples for the ongoing implementation and maintenance of the Program. 

Canada Groceries and Essentials Benefit 

The Canada Groceries and Essentials Benefit builds on the existing Goods and Services Tax (GST) Credit and will provide $11.7 billion in additional support over six years to over 12 million individuals and families, by: 

• providing a one-time top-up payment to be paid as early as possible this spring and no later than June 2026 (based on January 2026 eligibility)—equal to a 50% increase in the annual 2025-26 value of the GST Credit. This will deliver $3.1 billion in immediate assistance to individuals and families who currently get the GST Credit. 
• increasing the value of the Canada Groceries and Essentials Benefit by 25% for five years starting in July 2026. This increase will deliver $8.6 billion in additional support over the 2026-27 to 2030-31 period, including to 500,000 new individuals and families. 

Recipients will not need to apply for the additional payments, but should file their 2024 tax return if they have not done so already to be able to receive the top-up, and must file their 2025 tax return to receive the increased Canada Groceries and Essentials Benefit payments as of July 2026.  

Middle-class Tax Cut 

In May 2025, the government announced it would lower the first marginal personal income tax rate from 15 per cent to 14 per cent. The rate reduction applies to the first $58,523 of an individual's taxable income. Nearly 22 million Canadians will benefit from tax relief of up to $420 per person, saving two-income families up to $840 this year. 

The majority of tax relief will go to Canadians with incomes in the two lowest tax brackets. Nearly 45 per cent of the tax relief will go to Canadians with income below $58,523 (the first tax bracket) and 40 per cent to Canadians with income approximately between $58,523 and $117,045 (the second tax bracket). 

National Pharmacare Program

As part of the National Pharmacare Program, the Government of Canada has signed funding agreements with four provinces and territories – British Columbia, Manitoba, Prince Edward Island, and Yukon – to make a range of contraception and diabetes medications free at the pharmacy counter. Agreements end in 2028-29. 

Canadian Dental Care Plan 

The Canadian Dental Care Plan is available to uninsured Canadians with a family income of less than $90,000, with no co-pays for families under $70,000. It covers a wide range of services including cleanings, fillings, and dentures. The program first launched in 2023 and limited eligibility to seniors. As of May 2025, all eligible uninsured Canadians of all ages can apply. The program is saving eligible Canadians an average of $800 per year on their oral health services.

Temporary Suspension of Federal Fuel Excise Tax Rates on Gasoline, Diesel, and Aviation Fuels

The federal excise tax currently applies at a rate of 10 cents per litre on gasoline and unleaded aviation gasoline, and 4 cents per litre on diesel fuel and aviation fuel, other than aviation gasoline. The tax is typically payable by the manufacturer or wholesaler at delivery to a retailer and is embedded in the price of fuel, for example at the pump. Heating oil is exempt from this tax and there is no federal excise tax on natural gas or propane. Provincial governments also collect their own gasoline and diesel taxes.

As of April 20, 2026, federal excise tax rates on gasoline, unleaded aviation gasoline, diesel fuel, and aviation fuel have been reduced to 0 cents per litre. This temporary suspension will remain in effect until and including September 7, 2026. It is estimated this will provide over $2.4 billion in total tax relief that will ease the pressure of high fuel prices on Canadians in 2026.

Consumer Fuel Charge 

On March 14, 2025, the government announced that it will cease the application of the federal fuel charge, effective April 1, 2025. It also removed the requirement for provinces and territories to maintain a consumer-facing carbon price. These actions have reduced gasoline prices at the pump in most provinces and territories by up to 18 ¢/L compared to 2024–25 levels, thereby contributing to lower headline inflation.  

The government is winding down mechanisms used to return direct fuel charge proceeds to Canadians, small and medium-sized businesses, farmers, and Indigenous governments. Eliminating the fuel charge will give Canadian consumers and businesses certainty that the consumer carbon price is being permanently removed from legislation.  

Canada-wide Early Learning and Child Care system 

As part of Budget 2021, the government committed to build a Canada-wide Early Learning and Child Care system with PTs and Indigenous partners. As of 2025-26, the federal government is providing a minimum of $9.2 billion every year to support these efforts. 

The majority of PTs signed agreements that end in 2030-31, while those with Alberta and Ontario end on March 31, 2027. The agreements provide a time-limited 3 per cent top-up to help PTs respond to inflationary pressures on child care operations.

Eight provinces and territories have achieved $10-a-day or less average fees while others have reduced fees by at least 50%. Families of approximately 900,000 children are benefiting from affordable child care across the country thanks to FPT efforts.

Launching Build Canada Homes 

The government launched Build Canada Homes in the fall—a new federal agency that will build affordable housing at scale. It is mandated with building and financing more affordable homes and catalyzing a new housing industry. The government also announced the agency's first four investments and initiatives. This includes protecting existing affordable housing by launching the $1.5 billion Canada Rental Protection Fund under Build Canada Homes. Additionally, BCH will provide $1 billion to build transitional and supportive housing for people who are homeless or at risk of homelessness.  

First-Time Home Buyers' GST Rebate  

The government has eliminated the GST for first-time home buyers on new homes at or under $1 million and reduced the GST for first-time home buyers on new homes between $1 million and $1.5 million by introducing a new First-Time Home Buyers' GST Rebate. As a result of this rebate, first-time home buyers will be able to save up to $50,000 on a new home. This measure is expected to deliver $3.9 billion in tax savings to Canadians over five years, starting in 2025-26. 

Whole-of-Government Competition Plan

To strengthen productivity and improve affordability, the Spring Economic Update 2026 launched a new Whole-of-Government Competition Plan that will take a focused and coordinated approach to ensure that competition is prioritized throughout the federal government's policies.

Tackle food insecurity, support producers, and strengthen supply chains 

To help keep food affordable for Canadians and strengthen the resilience of Canada's food supply chain, the government has announced targeted measures to support businesses, producers, and local organisations, including: 

• The government is setting aside $500 million from the Strategic Response Fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians at the checkout line. 
• For the same purpose, the government will create a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for small and medium enterprises and the organisations that support them. 
• To lower the cost of food production, the government is introducing immediate expensing for greenhouse buildings. This allows producers to fully write off greenhouses acquired on or after November 4, 2025, and that become available for use before 2030. This measure supports increased domestic supply and investment in food production over the medium-term. 
• To ease immediate pressures with food banks, the government is providing $20 million to the Local Food Infrastructure Fund. This supports food banks and other national, regional, and local organizations to deliver more nutritious food to families in need. 
• To tackle the root causes of food insecurity, the government is developing a National Food Security Strategy – one that strengthens domestic food production and improves access to affordable, nutritious food. This strategy will also include measures to implement unit price labelling and support the work of the Competition Bureau in monitoring and enforcing competition in the market, including food supply chains. 

Alto Conflict of Interest Filter

Key Messages

• In July 2025, I notified the Department of Finance that I was proactively putting in place a filter to safeguard against any real or perceived conflict of interest in relation to Alto. This screen was then formalized in September 2025.
• I am committed to protecting the integrity of government decision-making and maintaining public confidence in government institutions. Conflict of interest screens are a means of achieving that.
• The filter prevents me from participating in any discussion or decision, other than those of a general nature, involving Alto.
• To ensure proper ministerial oversight and involvement, the Secretary of State (Canada Revenue Agency and Financial Institutions) has been delegated to take my place when the filter is engaged.
• I have also undertaken to recuse myself if a matter covered by the conflict-of-interest filter is inadvertently referred to me.

Details & Supplementary Information

The media has reported on potential conflict of interest issues concerning the Minister of Finance and National Revenue and Alto.

On April 7, 2026, Michael Barrett, Conservative Party of Canada Member of Parliament, and critic for Ethics and Accountable Government, wrote to the Conflict of Interest and Ethics Commissioner, asking him to investigate his "concerns that the Minister of Finance and National Revenue, the Honourable Francois-Philippe Champagne, may have breached his obligations under the Conflict of Interest Act in relation to the interests of Anne-Marie Gaudet, Vice-President, Environment of Alto".

Among other things, Mr. Barrett raises the prospect that the Minister may have been in a conflict of interest by debating and voting on the Budget and 2025 Budget Implementation Act (C-15) in Parliament.

Timeline of Key Events Related to Conflict-of-Interest Filter

• July 28, 2025: Finance Deputy Minister's Chief of Staff e-mailed senior departmental management informing them that a screen was being put in place so that the Minister is not involved in issues relating to Alto and asking for their assistance in managing it.
• September 10, 2025: Minister of Finance and National Revenue wrote to the Prime Minister informing him of the implementation of a conflict-of-interest filter related to Bionest Technologies, and Alto "a wholly owned subsidiary of the Government of Canada, with regard to a personal connection with an individual employed by the organization." The letter provides the details of the filter. On September 11, 2025, this letter was forwarded to the Minister's Office staff and departmental officials in the Deputy Minister's Office.

Canada-U.S. Trade and Tariffs

Key Messages

• As Canada diversifies and deepens its trade relationships, the U.S. market remains a top destination for Canadian exports. Canada has one of the best trade deals of all countries with the United States.
• The government is at the table and engaged with the U.S. to resolve outstanding tariffs, as well as on the upcoming CUSMA review, to ensure continued predictability and favourable trade and investment conditions.
• As Canada's Chief Negotiator Janice Charette said recently, there is likely to be ongoing discussion beyond July 1, and we should expect some turbulence. It is important that we stay the course and secure the best possible deal for Canada.

Trade Relations with the United States

• Approximately 85 per cent of Canada's exports to the U.S. remain tariff-free, with the effective average tariff rate on Canadian exports of 5.2 per cent.
• The government continues to maintain tariffs on imports on $51.4 billion of annual steel, aluminum, and autos imports from the U.S. – sectors directly affected by U.S. actions – to defend our interests.
• As of April 17, 2026, total net revenues for the countermeasures on imports from the U.S. are estimated to be $4.3 billion. Specifically, this reflects $9.7 billion in gross revenues, of which $5.5 billion has been relieved through remissions and other relief. 

Details & Supplementary Information

Current U.S. tariffs imposed on Canadian goods

• In aggregate, the current U.S. effective tariff rate against all Canadian exports is estimated to be around 5.2 per cent, with approximately 85 per cent of Canadian exports entering the U.S. tariff-free.
• Universal/Baseline Tariffs (Section 122): On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which had applied U.S. tariffs of 35% (10% for energy, critical minerals and potash) on non‑CUSMA‑compliant Canadian goods, without affecting tariffs imposed under other authorities such as section 232. In response, President Trump rescinded the IEEPA‑based Executive Orders and imposed a global 10% tariff under Section 122 of the Trade Act of 1974, effective February 24, 2026, preserving the carve‑out for CUSMA‑compliant goods and providing broader product exemptions, including for certain critical minerals, energy products, aircraft parts and coffee. On May 7, 2026, the U.S. Court of International Trade ruled that the Section 122 tariffs were unlawful, but limited its injunction to the specific plaintiffs, meaning the tariffs remain in effect for other importers pending appeal. Absent congressional action or a successful appeal, the Section 122 tariffs are set to expire on July 24, 2026. In parallel, the USTR has initiated accelerated Section 301 investigations targeting allegedly "unjustifiable, unreasonable, discriminatory, and burdensome" foreign trade practices, which could support the (re)imposition of broader tariffs once Section 122 authorities expire.
• U.S. Section 232 Tariffs: The U.S. currently maintains Section 232 "national security" tariffs on $150.5 billion of Canadian exports in specific sectors. These include: steel, aluminum, copper, autos and trucks and buses and non-CUSMA-compliant auto and truck parts, lumber and wood products (i.e., upholstered furniture, kitchen cabinets and vanities). The U.S. also maintains tariffs on certain advanced computing chips and derivatives, as well non-CUSMA compliant pharmaceutical products, but the impacts of these are more limited for Canada
• Potential future Section 232 sectoral tariffs: The Section 232 investigation on processed critical minerals and their derivative products (PCMDPs) is completed, with the President directing negotiations on a trade agreement with the threat of tariffs if negotiations to adjust the imports of PCMDPs into the U.S. are unsuccessful. Additional Section 232 investigations are ongoing for the following sectors, which could result in additional tariffs: (1) commercial aircraft and jet engines; (2) polysilicon; (3) unmanned aircraft systems; (4) wind turbines and their components; (5) robotics and industrial machinery; and (6) medical products.

Canadian counter-tariffs on the U.S. and tariff-based mitigation measures

• Canada initially imposed counter-tariffs on the U.S. affecting approximately $95 billion of annual imports from the U.S. Since September 1, 2025, the government has maintained counter-tariffs on $51.4 billion of annual steel, aluminum, and autos imports from the U.S. (sectors directly affected by U.S. actions).
• To minimize the negative effects of the counter-tariffs, the government established a remission framework to provide exceptional tariff relief on a case-by-case basis. More broadly, the government has announced that it will extend temporary tariff relief (remission), until June 30, 2027, for all goods imported from the U.S. for the manufacturing of motor vehicles, aerospace goods, and their parts, as well as those that support public health, public safety, and national security. Tariff remission will also be provided for aluminum goods used in manufacturing, processing, food and beverage packaging, or agricultural production to provide time for Canadian businesses to adjust their supply chains, until June 30, 2027.
• For autos, the government provided a performance-based remission framework that allows automakers to import a certain number of U.S.-assembled, CUSMA-compliant vehicles into Canada, free of the counter-tariffs. This remission is contingent on the automakers continuing to produce vehicles in Canada and on completing planned investments. In this context, on October 23, 2025, the government reduced General Motors' annual remission quota by 24.2 per cent, and Stellantis' annual remission quota by 50 per cent, in response to decreased production from GM, and Stellantis' decision to cancel its production plans for the Brampton assembly plant. Remission under the current automotive duty remission framework was extended for a second year and new quota volumes have been established for April 9, 2026 to April 8, 2027. Separately, public consultations were held from February 27, 2026 to April 13, 2026 on how the remission framework can be leveraged more strategically to reinforce domestic production and enhance the long-term competitiveness of the automotive sector. Submissions are being reviewed before determining next steps.

Revenues from U.S. counter-tariffs

• As reported in the Spring Economic Update 2026, as of April 17, 2026, the government assessed more than $4.3 billion revenue to date, net of remissions and other relief programs, from Canada's counter-tariffs on U.S. goods, as detailed in the chart below.

CUSMA review

• The USTR reported to Congress on December 17, 2025, that it intends to raise the following issues with Canada: expanded dairy market access, reforms to online streaming and news acts affecting U.S. digital services, ending provincial boycotts of U.S. alcohol, and addressing provincial procurement and customs issues. 
• In March 2026, the U.S. launched technical discussions with Mexico to support the USMCA review. Canadian interlocutors, led by Chief Negotiator Janice Charette, are engaging with U.S. counterparts and hope to launch a formal USMCA review process with the U.S. soon.

Canada-China New Strategic Partnership

Key Messages

• Canada is moving its economy from reliance to resilience. That includes building our strength at home, working to double our non-U.S. exports, and attracting new beneficial investments into Canada.
• To advance these priorities, Prime Minister Mark Carney travelled to China from January 14 to 17, 2026, where he met with President Xi Jinping and forged a new Canada-China Strategic partnership, outlined by a Joint Statement.
• The new Strategic Partnership emphasizes pragmatic and constructive cooperation in key areas of mutual interest, namely in macroeconomic engagement, economic and trade cooperation, energy, finance, public security and safety, people-to-people ties, and multilateralism. Canada also set an ambitious goal to increase exports to China by 50% by 2030.
• To help deliver on the full potential of the partnerships and resolve certain trade irritants, both countries have taken the following actions since January 2026:
• Canada eliminated the 100 per cent surtax and established a quota for 49,000 electric vehicles, as well as extending certain remissions on Chinese imports to the end of 2026. In return, China reduced tariffs on canola seed and eliminated tariffs on canola meal, peas, lobster and crab.
• In April, building on the Prime Minister's visit, I travelled to Beijing, where I met with Vice Premier He Lifeng, Finance Minister Lan Fo'an and other key Chinese officials. Together, we discussed strengthening the bilateral relationship under the Economic and Financial Strategic Dialogue (EFSD) and launched the Financial Working Group.
• I was accompanied by Governor Macklem, Superintendent Routledge and a number of Canadian financial institutions showing the value of two-way trade and investment, including in financial services and advancing economic cooperation.

Details & Supplementary Information

Economic and Financial Strategic Dialogue (EFSD) and Financial Working Group (FWG)

• Canada's government is fostering a pragmatic approach to engagements with our second largest trading partner.
• In April, building on the Prime Minister's visit, Minister Champagne travelled to Beijing, where he met with Vice Premier He Lifeng and discussed strengthening the bilateral relationship under the Economic and Financial Strategic Dialogue (EFSD). He also had a bilateral meeting with Finance Minister Lan Fo'an. Both Canada and China recognized the value of two-way trade and investment, including in financial services and advancing economic cooperation in areas of shared alignment. This shared desire to strengthen economic ties was underscored by a Roundtable with Financial institutions and a Joint Statement he signed with Governor Pan Gongsheng of the People's Bank of China in which Canada and China launched the Financial Working Group (FWG).
• Canada stands ready to work with China to advance economic and financial cooperation. Building on this commitment, both sides have agreed to building progress under the Economic and Financial Strategic Dialogue which will be held in Canada in the second half of this year.

Canada-China bilateral relations

• Canada and China share more than 55 years of diplomatic relations that includes trade and investment, environment and climate change, education and culture.
• With a shifting global context, Canada remains committed to supporting and growing the well-established trade and investment ties with China.
• Our efforts are no different from the approach of other major economies, including the U.S., which engage with China for the purpose of improving the conditions for bilateral trade and investment.

Canada-China commercial relations

• China remains an important commercial market for Canadian businesses with two-way bilateral merchandise trade in 2024 totaling $118.9 billion. China is Canada's second-largest trading partner.  
• Canada will continue to pursue constructive dialogue with China on trade because engagement is not only the best way to advance Canadian economic interests but also to find a way forward on our existing trade irritants. Canada and China can deepen and expand commercial relations in sectors such as clean and conventional energy, agriculture and agri-food and consumer goods and services.
• As Canada seeks to diversify trade and pursue commercial opportunities, we will continue to ensure that we have the right tools in place to safeguard Canada's national and economic security interests.

Canada-China Trade Relations

During the visit, Prime Minister Carney and President Xi secured a preliminary agreement-in-principle to address trade issues:

As of March 1, 2026, both countries have implemented their respective commitments as listed above.

Revenues from China Surtax Order (2024)

• As reported in the Spring Economic Update 2026, as of April 17, 2026, the government assessed $171 million in revenue to date, net of remissions and other relief programs, from the China Surtax Order (2024), as detailed in the chart below.

Trade Measures on Steel Products

The government implemented trade measures to mitigate the acute risk of diversion arising from U.S. actions, as well as to facilitate the steel industry's long-term adjustment and to promote domestic opportunities for Canadian producers.

• China Surtax Order (2024): In October 2024, Canada imposed a 25 per cent surtax on certain steel and aluminum products from China.
• U.S. Surtax Order (Steel and Aluminum): In March 2025, in response to U.S. tariffs on Canadian steel and aluminum, the government imposed a 25 per cent surtax on certain steel and aluminum products from the U.S.
• Steel Tariff Rate Quotas (TRQs): Initially imposed in June 2025, this measure currently limit imports from non-CUSMA FTA and non-FTA partners to 75 per cent and 20 per cent, respectively, of 2024 import levels above which a 50 per cent surtax applies.
• Steel Goods and Aluminum Goods Surtax Order: Effective July 30, 2025, Canada imposed a 25 per cent surtax on steel goods containing steel melted and poured in China, and aluminum goods containing aluminum smelted and cast in China.
• Steel Derivative Goods Surtax Order: Effective December 26, 2025, Canada imposed a 25 per cent surtax on imports of steel derivative products from all countries.

Remission remains available for these surtax measures.

Canada Strong Fund

Key Messages

• The Canada Strong Fund – Canada's first national sovereign wealth fund – will invest in key, strategic Canadian projects and companies, creating jobs, supporting innovation, and helping Canada stay competitive in a rapidly changing world.
• Importantly, Canadians themselves will have the opportunity to invest in the Fund, giving them a direct stake in our country's growth and the ability to share in its success.
• The Fund will make strategic equity investments, alongside other investors and consistent with other federal financing entities, in the projects and companies that are driving Canada's economic transformation.
• The Spring Economic Update 2026 announced a plan to provide $25 billion in seed funding for the Canada Strong Fund over 3 years, beginning in 2026-27.  The Spring Economic Update 2026 includes the estimated debt servicing cost associated with the introduction of the Canada Strong Fund.
• The Department of Finance is conducting targeted consultations and will soon release further details on the Canada Strong Fund.

Details & Supplementary Information

• Using the assumptions set out below, the Spring Economic Update embeds a projection of about $967.5 million over three years in public debt charges associated with the anticipated cash outlays from the Canada Strong Fund.  
• These assumptions could change as details of how the fund will be operationalized are refined in the coming months. 
  • Table A1.10 (page 129 English, page 147 French): incorporates $25 billion, on a cash basis, for seed funding over 3 years starting in 2026-27. While not disaggregated, the $25 billion seed funding is included the forecast for non-budgetary transactions within Loans, investments and advances, Enterprise Crown corporations. 

• Table A1.9 (page 125 English, page 142 French): incorporates projected public debt charges associated with the Fund. While not disaggregated, interest is estimated at about $750 million annually once funding is fully deployed, based on interest rates provided in the March private sector survey.

• Table A1.1 (page 113 English, page 130 French): provides the average private sector forecast for 3-month treasury bills and 10-year government bonds which are used to calculate public debt charges.

Climate and Nature

Key Messages

• The government is making investments to safeguard Canada's natural advantage and is driving Canada to be a reliable energy supplier.
• With $3.7 billion over five years (cash basis), the new Nature Strategy will:
• Help conserve 30 percent of lands and waters by 2030;
• Invest in new national parks and marine protected areas;
• Protect and recover species at risk; and,
• Advance actions to mobilise capital for nature.
• The government's Climate Competitiveness Strategy (Budget 2025, p. 104), will address climate change while positioning Canadian businesses to thrive. Key to this strategy is a suite of clean economy investment tax credits (ITCs):
• Clean Technology ITC: A refundable tax credit of 30% for investments in low-emitting electricity generation, electricity storage, low-carbon heating, and non-road zero-emission vehicles and related charging/refuelling.
• Clean Electricity ITC: A refundable tax credit of 15%, available to certain taxable and non-taxable corporations, for investments in low-emitting electricity generation, electricity storage, and transmission of electricity between provinces and territories.
• Carbon Capture, Utilization and Storage ITC: A refundable tax credit for eligible expenditures, with a 50% credit rate for carbon capture equipment (60% in the case of direct air capture) and 37.5% for transportation, storage and use equipment.
• The Spring Economic Update 2026 announced that enhanced oil recovery would be made eligible, but at half the credit rates.
• Clean Hydrogen ITC: A refundable tax credit for up to 40% of eligible clean hydrogen project costs.
• Clean Technology Manufacturing ITC: A refundable tax credit of 30% for investments in certain machinery and equipment used to manufacture or process key clean technologies, or extract, process, or recycle key critical minerals.
• The government's Automotive Strategy, with $6.9 billion over five years (cash basis), will reduce emissions, help make electric vehicles more affordable and reliable, and protect Canadian auto workers. (Spring Update, p.71)
• As critical minerals are essential for clean energy technologies and renewable energy infrastructure, the government provided $5 billion over five years (cash basis) through the Critical Minerals Strategy to develop domestic and global value chains for the green and digital economy (Budget 2025, p. 111).
• On May 14, 2026, the Government of Canada released a new National Electricity Strategy and announced it was launching consultations with provinces, territories, Indigenous Peoples, utilities, and unions on the best way to support Canada's electricity sector. With electricity demand in Canada set to double by 2050, this is an enormous opportunity for Canada to build a sustainable, affordable future.

Details & Supplementary Information

Sustainable Finance

The government is committed to fostering sustainable financial markets in Canada to support economic growth and mobilize substantial capital toward the net-zero transition.

Taxonomy: The government is supporting the arm's-length development of made-in-Canada sustainable investment guidelines (i.e., taxonomy), a voluntary, market tool to credibly identify "green" and "transition" investments. Work is being led by Canadian Climate Institute and Business Future Pathways. Guidance for three priority sectors is expected by end of 2026, with three additional sectors expected by fall 2027.

Climate Disclosures: Budget 2025 announced that the government will work with PTs to improve climate disclosure across the economy. This work will seek alignment with international standards and harmonised rules across FPT jurisdictions.

International Climate Finance

The Spring Economic Update 2026 announced funding to support the continued delivery of Canada's climate-related international assistance through Global Affairs Canada (GAC), Environment and Climate Change Canada (ECCC), and FinDev Canada, and set a goal of delivering more than $13 billion in climate-related support to developing countries over the next five years from all sources.

Sources of international climate finance include: (i) climate-related international assistance, delivered primarily by GAC and ECCC; (ii) climate-relevant support from FinDev Canada and Export Development Canada (EDC); (iii) the climate-related share of Canada's core contributions to multilateral development banks (MDBs); and, (iv) private finance mobilized with these public resources.

Comprehensive Expenditure Review (CER)

Key Messages

• The government is on track to save Canadians $60 billion by 2029-30 as set out in Budget 2025. Three-quarters of this comes from reducing day-to-day spending on government operations and inefficiencies through the Comprehensive Expenditure Review (CER).

• For most organizations, reductions included in Budget 2025 were reflected in the 2026-27 Main Estimates (tabled on February 26) and detailed in Departmental Plans tabled shortly thereafter.
• CER represents a 4.9% reduction in projected direct program expenses by 2028-29 (B25, p. 211), with an estimated reduction of 16,000 FTEs, or roughly 4.5% of the March 2025 workforce. Along with attrition and previously savings exercises, this will support a more sustainable public service (B25, p. 212).

Main Estimates Reconciliation

• The Main Estimates provide one-year cash authorities for 2026-27. While $8.6 billion in accrual savings was published in Budget 2025 (B25, p. 293), the Main Estimates in aggregate reflect $5.2 billion in savings across organizations.
  • The $3 billion difference is due to an accrual adjustment of $2.7 billion for VAC and the RCMP benefits, and $0.7 billion in additional savings reported in the budget but not yet reflected in the Main Estimates (corresponding to organizations that received revised 2% targets and are developing savings proposals).

Sunsetting Programs

• Some organizations have achieved savings by winding down sunsetting programs, such as the 2 Billion Trees program (B25, p. 210), or Net Zero Accelerator (B25, p. 209).
• While future years of time-limited (or sunsetting) funding may not be reflected in Departmental Plans, they are accounted for in various ways in the fiscal forecast.
• As a result, the reduction or winding down of certain programs as part of CER generates savings, which are reflected in the budget and contribute to the sustainability of the government's fiscal track.
• Additional decisions about program funding scheduled to expire in the future will be taken at a later time.

Department of Finance

• Implementation of Comprehensive Expenditure Review (CER) measures at the Department of Finance will result in savings of $10.7 million in 2026-27, increasing to $14.2 million in 2027-28 and $21.3 million in 2028-29 and ongoing.
• An estimated $5 million in ongoing savings is set to come from optimised risk management practices associated with the Exchange Fund Account (EFA). The savings are expected to materialize through lower public debt charges, due to lower funding costs for the EFA.
• CER savings are being implemented through a planned reduction in staffing levels over three years, supported by workforce realignment and organizational changes that maintain delivery of core policy and corporate functions. This represents a cumulative reduction of 94 full-time equivalent positions by 2028-29. As a result of careful planning, vacancy management, and limiting external staffing, the Department has already achieved approximately 60 per cent of the position reductions required to meet CER targets.
• The remaining savings are being focused on reorganizing resources within and across policy branches, centralizing administrative functions across the Department, and achieving efficiencies in internal service areas by modernizing tools, processes, and functions.
• In December 2025, the Department provided affected letters to 84 employees, advising them that their services may no longer be required and introducing a voluntary departure program that ran to February 3rd. The Department planned to reduce up to 40 positions through the voluntary departure program or subsequent workforce adjustment measures, as required.
• The voluntary departure program resulted in 17 voluntary departures. The Department has since rescinded the affected status of 16 employees whose services will be retained. In addition, the Department has informed 8 employees that their positions have been declared surplus. There remain 38 affected employees whose services may no longer be required.

Details & Supplementary Information 

• Table A3.1 of Budget 2025 sets out the total savings for CER in Annex 1 (B25, p. 293):

• The table at the end of Chapter 5 in Budget 2025 outlines how CER and other measures achieve $60 billion in new savings and revenues over five years, starting in 2025-26 (B25, p. 222):

• The $60 billion of savings and revenues are incorporated the Budget 2025 revenue outlook (personal income tax, corporate income tax, non-resident income tax, and goods and services tax revenues) outlined in Table A1.8 (B25, p. 240), and in the Budget 2025 expense outlook (other transfer payments, other direct program expenses) outlined in Table A1.9 (B25, p. 245).

Combatting Financial Crimes (Anti-Money Laundering Measures)

Key Messages

Financial Crimes Agency

• The Government is standing up the Financial Crimes Agency, Canada's first-ever federal law enforcement agency dedicated to investigating sophisticated financial crimes like fraud and money laundering, and to recovering illicit proceeds.
• On April 27, 2026, legislation to enact the new Agency was tabled (Bill C-29, Financial Crimes Agency Act), and the 2026 Spring Economic Update proposed funding of over $400 million over 5 years to support the Agency's creation.
• This initiative delivers on the Government's Budget 2025 commitment and is part of the Government's broader efforts to protect Canadians and Canada's economy, crack down on financial crime, and reinforce Canada's credibility as a trusted international partner.

Banning Crypto ATMs

• Crypto ATMs have become a primary method for scammers to extract cash from victims and for criminals to place their proceeds of crime.
• By banning crypto ATMs, the Government is cracking down on scammers and protecting Canadians from financial crimes that support and enable drug trafficking, extortion, and fraud.
• Canadians will continue to be able to purchase cryptocurrency through online and brick-and-mortar exchanges where 'know your client' controls can be better ensured.

Details & Supplementary Information

Financial Crimes Agency

• Budget 2025 announced the Government's commitment to establish the Financial Crimes Agency (FCA) as Canada's as Canada's first-ever federal law enforcement agency dedicated exclusively to investigating sophisticated financial crimes and recovering illicit proceeds.
• On April 27, 2026, Bill C-29, Financial Crimes Agency Act, was introduced in Parliament. The proposed legislation would establish the FCA as an independent agency, reporting to the Minister of Finance, with police powers and civilian leadership. Key features of the Agency include: 
• A mandate to investigate serious and complex financial crimes, such as money laundering, serious fraud, and major capital market crimes, and to recover the proceeds of crime; 
• The capacity to lead investigations on its own and in close cooperation with provincial, territorial, municipal, and international law enforcement partners; 
• The ability to attract, develop, and retain highly specialised personnel to support intelligence-led, follow-the-money investigations, including civilian and police investigators, criminal and financial intelligence personnel, and asset recovery experts, who will be supported by dedicated and specialised prosecutors; and 
• Headquarters in the National Capital Region, with authority to establish regional offices. 
• The FCA is expected to begin phased implementation following Royal Assent, with full operational capability targeted for 2027. 
• To stand up the new Agency, the 2026 Spring Economic Update proposed to provide:
• $352.7 million over five years starting in 2026-27, with $57.8 million in remaining amortisation, and $82.1 million ongoing to the FCA;
• $46.2 million over five years and $11.5 million ongoing to the Public Prosecution Service of Canada; and
• $19.6 million over five years and $1.5 million ongoing to the Department of Finance Canada.
• The Spring Economic Update 2026 also announced the government's intention for the Minister of Justice to explore new criminal justice reforms to support the investigation and prosecution of complex financial crimes.

Crypto ATMs (announced in Spring Update, legislation not yet tabled)

• Studies from other jurisdictions have found that between 85 and 98 per cent of crypto ATM transactions are linked to illicit activity and the Canadian Anti-Fraud Centre estimates that between 5 and 10 per cent of fraud is reported, meaning that Canadians are estimated to have lost between $142 million and $284 million due to fraud facilitated by crypto ATMs in 2024.
• In Canada, there is no comprehensive data on all the transactions conducted by crypto ATMs or crypto ATM operators.
• Crypto ATMs also charge fees that are 5 to 10 times higher than online and brick-and mortar cryptocurrency exchanges, significantly limiting their legitimate use.
• Singapore and some cities and states in the United States have banned crypto ATMs outright, and the United Kingdom has effectively banned them. New Zealand is awaiting approval of legislation to ban them, and Australia has indicated that recently passed legislative powers will be used to ban crypto ATMs.

Restriction on Large Cash Transactions (tabled in C-2, waiting for re-tabling)

• Legislation to implement the ban on crypto ATMs is expected to also include a restriction on accepting large cash transactions of $10,000 or more. This measure was included in Bill C-2, and received some criticism from the Conservative Party, who suggested that it could negatively affect legitimate transactions.

Responsive Only – If asked about the restriction on large cash transactions

• Profit-driven crimes such as drug trafficking, extortion, and fraud generate cash proceeds and cash remains a preferred payment method for criminals as it is autonomous and easily transferrable.
• For this reason, many countries maintain restrictions on large cash transactions. Canada is the only country in the G7, other than Japan, without a framework to restrict or regulate large cash transactions across the economy.
• The impact of these measures on Canadians would be minimal. Cash represented only 1% of payment transaction value in Canada in 2024, with an average transaction value of $27.
• Deposit taking institutions are exempted from the restriction on large cash transactions to allow cash to flow to the financial system and enable convenient, secure, and cost-effective electronic payment alternatives for large purchases, such as cheque, debit card, credit card, wire-transfer, e-transfer, etc. 
• Every person in Canada has a statutory right to a bank account and Canada has the highest rate of financial inclusion in the G7, with over 99% of working age Canadians having an account at a financial institution.   
• 99% of Canadians live within 20kms of an ATM and 97% within 20kms of a branch.

Defence Spending and Commitments

Key Messages

• In March 2026, Canada achieved its NATO commitment of reaching 2 per cent of GDP core defence expenditure - the first time since the fall of the Berlin Wall.
• NATO Allies, including Canada, have agreed to a new Defence Investment Pledge to spend 5 per cent of GDP on defence by 2035.
• Canada is on a pathway to meet this commitment. Specifically:
  • Canada already meets the "defence- and security-related investments" target of 1.5 per cent with currently planned spending by federal, provincial, and territorial governments.
  • The government announced $85 billion in Budget 2025 and an additional $2.4 billion in the Spring Economic Statement 2026 towards the "core defence investment" target of 3.5 per cent (see table below).
• In total, the government has provisioned funding to achieve 4 per cent of GDP in total defence spending by the end of this decade.
• The government intends to further increase defence spending to achieve the NATO 5 per cent spending target on or ahead of schedule (i.e., by 2035), with additional funding to be made available as specific defence spending plans and capabilities are defined.
  • *Redacted*
  • *Redacted*
• To ensure Canadians benefit from this investment, the government launched a new Defence Industrial Strategy in February 2026 – a whole‑of‑government plan to modernize and grow Canada's defence industry.
• This strategy prioritizes Canadian suppliers and materials, invests in innovation, streamlines procurement, and provides industry with a clear and predictable demand signal – helping Canadian firms compete at home and with trusted partners abroad.
• At the centre of this effort is the new Defence Investment Agency, which will accelerate defence procurement, strengthen Canada's industrial base, attract private investment, and turn defence spending into long‑term economic growth and high‑quality jobs across the country.

Details & Supplementary Information

• At the NATO Leaders Summit in June 2025, Allies, including Canada, agreed to a new Defence Investment Pledge (DIP) to spend 5 per cent of GDP on defence by 2035, composed of:
  • "Core defence investments" of 3.5 per cent; and,
  • "Defence- and security-related investments" of 1.5 per cent.
• Budget 2025 announced incremental defence spending of $84.9 billion over five years on a cash basis, that Canada is on a pathway to meet the 3.5 per cent target by 2035, and that currently planned spending by federal, provincial, and municipal governments is expected to meet the 1.5 per cent commitment.
• In fiscal year 2025-26, Canada spent more than $63 billion on core defence. In March 2026, the Government announced Canada had achieved the NATO target of spending 2 per cent of GDP on core defence investments in 2025-26.
• At the end of Chapter 4 Table in Budget 2025 (page 199 English, page 229 French): shows $58.8 billion on an accrual basis for defence, which includes: (1) Rebuilding, Rearming and Reinvesting in the Canadian Armed forces; (2) A New Defence Investment Agency; and (3) Operations REASSURANCE and AMARNA.

• Details on these measures, including total funding amounts on a cash-basis, are outlined in Chapter 4 (pages 184-190 English, pages 213-219 French).
• In the Spring Economic Update 2026 at end of Chapter 1 Table (page 86 English, page 96 French): shows $2.08 billion on an accrual basis for defence, which includes: (1) the Defence Investment Agency; and (2) Operation UNIFIER.

• Table A1.15 (page 136 English, page 158 French): shows $300 million in 2026-27 on an accrual basis for Military Assistance to Ukraine.

Responsive: Has the Government committed funding to meet the NATO 5 per cent Target?

• With the lowest net debt-to-GDP ratio and one of the smallest deficit-to-GDP ratios in the G7, Canada's fiscal position is strong.
• Budget 2025 provided the largest increase in Canada's defence spending in generations to rebuild, rearm, and reinvest in the Canadian Armed Forces, strengthen Canada's sovereignty and drive economic growth.
• As a result of these investments, Canada achieved NATO's 2 per cent of GDP core defence spending target in the 2025–26 fiscal year and is on a pathway to meet NATO's new Defence Investment Pledge of investing 5 per cent of GDP on defence by 2035.
  • This new commitment is made up of 3.5 per cent for investments in core defence by the federal government, and 1.5 per cent for defence- and security-related investments by all levels of government in Canada.
  • The government has provisioned funding to achieve 4 per cent of GDP in total defence spending by the end of this decade.
  • The government expects that currently planned spending by federal, provincial, territorial, and municipal governments will meet the 1.5 per cent commitment.
• The government intends to further increase defence spending to achieve the NATO 5 per cent spending target on or ahead of schedule (i.e., by 2035), with additional funding to be made available as specific defence spending plans and capabilities are defined.

Submarine Procurement Process and Funding

• In August 2025, the Government selected two qualified bidders for its submarine procurement: Germany's ThyssenKrupp Marine Systems (TKMS), in joint collaboration with Norway; and Korea's Hanwha Ocean. The project seeks to acquire up to 12 new submarines for the Royal Canadian Navy. Proposals from the two qualified proponents were provided in March.
• The government is currently in the process of evaluating the bidders' submissions. Canada is keen to move forward on this procurement as soon as possible, with an announcement of the outcome expected in the coming months.
  • Canada makes decisions independently, in the best interests of Canadians, informed by expert advice and aligned with Canada's defence and security policy.
  • Decisions are made in accordance with established procurement rules and based on expert advice. Ministers do not participate in the technical evaluation of proposals, which is conducted by public servants using clear and documented criteria.

Responsive: has the Government earmarked funding in the fiscal framework for submarines?

• *Redacted*

Defence Industrial Strategy

• The Government launched Canada's first Defence Industrial Strategy in February 2026, reflecting its clear commitment to ensuring Canada has secure, timely, and reliable access to the capabilities required to defend our country, protect our sovereignty, and confront current and future threats.
• The Strategy provides a framework and tools to ensure that defence investments both improve Canada's military capabilities and support the economy by growing Canadian industry, creating good jobs across the country, and helping Canadian companies succeed internationally.

Defence Investment Agency (DIA)

• In October 2025, the DIA was established as a Special Operating Agency under Public Services and Procurement Canada.
• Budget 2025 provided $30.8 million over five years to establish the DIA, and the Spring Economic Update 2026 provided a further $103 million to launch the Agency as a stand-alone entity and achieve its mandate.
• In May 2026, the government tabled enabling legislation to establish the DIA as a departmental agency and to update the scope of the Defence Production Act to bring it in line with the realities of the world today.

Defence, Security, Resiliency Bank (DSRB)

• In April, multilateral negotiations in Montréal on the DSRB's Charter concluded, an important first step to set up the new institution.
• The DSRB will provide long-term, low-cost financing for defence, security, and resilience initiatives across supply chains, helping small- and medium-sized enterprises and member governments to address critical financing gaps.
• Participating countries unanimously supported that, once ratified, Canada, which hosted the negotiations, will serve as host country for the DSRB's future headquarters.
• Canada recognizes that much work remains ahead to establish the DSRB and we are committed to work together with partners on the next critical phase to make the shared vision a reality.

Responsive: Where will the DSRB headquarters be located in Canada?

• A decision on the exact location of the headquarters will be made in due course.

Electric Vehicle Policies

Key Messages

• In February 2026, we introduced an auto strategy that rewards the production of made-in-Canada vehicles and makes EVs more affordable and reliable for Canadians. However, any transition to new technologies cannot happen overnight. The automotive industry will need time to adjust and to develop new technologies and production lines to support Canadian-made EVs. Consumers are increasingly adopting EVs as they become more affordable and charging infrastructure becomes more accessible.
• The government is making investments to help the sector adapt, grow, and diversify into future markets. These will address immediate challenges facing the sector, including electrification, automation and connected technologies.
• The government recognizes that affordability and availability of charging infrastructure are the top barriers to EV adoption. This is why the government is launching a new EV Affordability program and developing a National Charging Infrastructure Strategy.
• The government is developing new emissions regulations to replace the Electric Vehicle Availability Standard.
• These regulations are expected to put Canada on a path to achieve a goal of 75% EV sales by 2035 and 90% by 2040, while providing manufacturers flexibility in the technologies used to achieve these emission reductions.
• This will ensure that Canadian manufacturers do not face undue burdens in the short-term as they continue the transition to building the electric cars of the future.
• Becoming our own best customer in the automotive industry cannot happen overnight. Today's investments to support our automotive industry and increase consumer confidence in EVs prepare us for the future. These investments will help build a future in which Canadian manufacturers build EVs for Canadians and the world.

Details & Supplementary Information

• On February 5, 2026, Canada introduced a new auto strategy that rewards the production of made-in-Canada vehicles and harnesses our world-class capabilities in artificial intelligence and technology expertise to build the cars of the future. This is a strategy that positions Canada to become a global leader in EV production. 

Domestic measures to protect Canada's automotive sector include: 

• Allocating $3 billion of existing funding from the Strategic Response Fund and $100 million of existing funding from the Regional Tariff Response Initiative to support investments in the automotive sector. In line with the Buy Canadian Policy, the government will look to leverage these investments to maximize opportunities for Canadian suppliers and Canadian-made goods and services, including steel and aluminum.
• Rationalizing emissions reduction policies to focus on outcomes that matter to Canadians. The government will repeal the Electric Vehicle Availability Standard. While doing so, Canada will increase the stringency of greenhouse gas emissions standards for light-duty vehicles. This is expected to drive a 75% EV adoption rate by 2035 and aspires to achieve a 90% EV adoption rate by 2040, while allowing manufacturers to use a wide array of technologies to meet the standards. Considering rapidly evolving technologies, Canada will review these standards after five years to ensure they remain ambitious and aligned with Canada's overall climate objectives.
• Strengthening domestic demand by making EVs more affordable and reliable for Canadians through new, targeted five‑year $2.3 billion EV Affordability program. The EV Affordability program will offer incentives of up to $5000 to consumers and businesses for the purchase or lease of eligible cars with a final transaction value of $50,000 or less. To support the Canadian automotive industry, the transaction value eligibility cap will not apply to Canadian-made EVs.
• Developing a new national charging infrastructure strategy, which will focus on better attracting private equity, reducing barriers, making buildings EV-ready and ensuring skills training. The strategy will include investments of $1.5 billion through the Canada Infrastructure Bank's Charging and Hydrogen Refueling Infrastructure Initiative. It will also seek to identify private sector champions to lead projects of national significance, building out charging infrastructure more quickly across the country.
• Leveraging the Worker Retention Grant launched on February 17, 2026 to help employers support their Work-sharing employees to upskill and adapt to changing labour market needs – enabling eligible workers to receive top-up supplements on their incomes while they train. As well, investing in skills development through a new Workforce Alliance on advanced manufacturing bringing together industry, labour and training institutions to tackle urgent labour market challenges, including in the automotive sector, and a Workforce Innovation Fund to support projects that help businesses in key sectors and regions recruit and retain the workforce they need.  
• Continuing to provide assistance through Labour Market Development Agreements with provinces and territories so they can support Canadians with Employment Insurance funded skills training and employment assistance. 

Trade measures to protect Canada's automotive sector include: 

• Implementing a performance-based remission framework which allows automakers in Canada to import a certain number of U.S.-assembled, CUSMA-compliant vehicles free of the counter-tariffs that Canada has imposed, provided that the automakers continue to produce vehicles in Canada and complete planned investments. Remission under the current automotive duty remission framework was extended for a second year and new quota volumes have been established for April 9, 2026 to April 8, 2027.
• Separately, public consultations were held from February 27, 2026 to April 13, 2026 on how the remission framework could be leveraged more strategically to reinforce domestic production, attract new investment and enhance the long term competitiveness of Canada's automotive sector. Submissions are being reviewed before determining next steps.

Federal Excise Tax on Gasoline (Suspension)

Key Messages

• Inflation everywhere, including in Canada, has gone up because of the surge in energy prices caused by the conflict in the Middle East.
• The temporary suspension of the 10-cent-per-litre excise tax on gasoline is providing immediate relief to Canadians at the pump, lowering the cost of filling a typical 50-litre tank by up to $5.75.
• Taxes declined quickly and across provinces following the tax suspension, helping offset part of the recent increase in global oil prices.
• This relief builds on one of the first actions we took as a government—cancelling the consumer fuel charge—which also lowered costs at the pump in most provinces and territories.
• Global factors beyond Canada's control continue to put upward pressure on fuel prices. Since the conflict in the Middle East began, global crude oil prices have increased by roughly 40%.
• Markets are currently pricing in a decline in global oil prices over the coming months. However, the future path of oil prices depends heavily on the situation in the Middle East.
• In addition to the fuel excise tax suspension, we are taking actions to help support Canadians and improve affordability, such as the new Canada Groceries and Essentials Benefit.
• The new Canada Groceries and Essentials Benefit will provide significant additional support to more than 12 million Canadians. A family of four could receive up to $1,890 this year and approximately $1,400 annually over the following four years.
• We also lowered the first personal income tax rate from 15 per cent to 14 per cent, made the National School Food Program permanent, and we are also making it easier for first-time home buyers to buy a new home.

Details & Supplementary Information

Since the conflict in the Middle East began, gasoline prices in Canada have increased by roughly 35 cents per litre, reflecting a sharp rise in global crude oil prices and broader pressures in international energy markets.

Gasoline prices (converted to U.S. cents per litre) have risen across all G7 countries, with prices up the most in France (44 cents) and the U.S. (38 cents), followed by U.K. in third (36 cents). Canadian currently ranks fifth (33 cents).

On April 14^th, the government announced that it would suspend the federal fuel excise tax on gasoline, diesel and aviation fuels from April 20^th until September 7^th (inclusive).

The excise tax applies at a flat rate of 10 cents per litre for gasoline and unleaded aviation gasoline, 11 cents per litre of leaded aviation gasoline, and 4 cents per litre on diesel fuel and aviation fuel, other than aviation gasoline. These rates would be temporarily set to $0 by Bill C-30 (note that the government has indicated that it would propose an amendment to Bill C-30 to make a technical correction and include leaded aviation gasoline in the relief).

The tax component of the price of gasoline in Canada declined immediately on the first day of implementation of the tax measure, decreasing 10.9 cents per litre (Table 1).

Since implementation, the price of gasoline has increased 6 cents per litre (4 per cent), partly offsetting the effect of the tax suspension.

The increase largely reflects higher refining margins, owing to disrupted global oil supplies and related refinery outages.

As of May 29, 2026, the tax component of the price of gasoline represented 31.5 cents per litre, its lowest level over the 2020 to 2026 period (Chart 1).

In May, crude costs—the largest component of the price of crude—averaged to 88 cents per litre, its highest level since 2022 (following the Russian invasion of Ukraine). Meanwhile, the margin (selling plus refining) has risen to 59 cents, its highest level over the 2000 to 2026 period.

The tax component of the price of gasoline declined across all provinces commensurately following implementation of the measure. Gasoline prices in most provinces declined close to the 10 cents per litre on the first day of implementation (Chart 2).

Compared to February 27 (pre-conflict), the volume-weighted price of gasoline in Canada has increased 35 cents (25 per cent). Across provinces, the price of gasoline grew between 30 cents (23 per cent) in Manitoba to 40 cents (27 per cent) in British Columbia (Chart 3).

Housing Affordability

Key Messages

• The government is taking decisive actions to improve housing affordability, and conditions have substantially improved. Strong federal measures, combined with lower immigration levels, are helping to rebalance supply and demand, easing pressures in both ownership and rental markets.
• Federal actions are broad and coordinated, including Build Canada Homes, the Improving Housing Supply Act, GST relief for first-time home buyers, supports for factory-built housing and innovation, updated mortgage insurance rules, a temporary extension of repayments under the Home Buyers' Plan, and recalibrated immigration levels to better align with housing capacity.
• Affordability is already improving. Home prices have fallen by 20% from their peak, and combined with rising incomes and lower interest rates, this is improving purchasing power. New buyers are now saving nearly $800 per month on their mortgage payment nationally relative to the peak in October 2023—with savings up to $1,300-$1,400 in Toronto and Vancouver.
• Broader affordability metrics are also moving in the right direction. The Bank of Canada Housing Affordability Index has improved significantly, falling from a peak of 54.5% in 2023 to 42.7% in late 2025, meaning housing costs are taking up a smaller share of household income.
• On the rental side, federal measures are supporting one of the strongest periods of purpose-built rental construction in decades, with rentals expected to make up about half of all new construction. This is already easing pressures, with the national rental vacancy rate rising to 3.1 per cent in 2025 from a historical low of 1.5 per cent in 2023. Average asking rents are down $160 per month nationally from two years ago, with larger declines of $320 in Vancouver and $260 in Toronto.
• As a result, rental affordability is improving. The share of income required for rent has declined meaningfully, with advertised rents now back below 30% of income nationally—a level not seen in over six years—reflecting growing supply and a better balance in rental markets.

Details & Supplementary Information

Supported by a number of measures, the housing supply gap is beginning to narrow, particularly in rental markets, including in Canada's largest cities. National asking rents have declined by $160 per month from two years ago. In Toronto, average monthly asking rents declined by $260 over the same period, while Vancouver saw a decline of $320.

The Bank of Canada Housing Affordability Index represents the share of disposable income that a representative household would put towards housing-related expenses, including mortgage costs and utility payments.

Home prices have declined from recent peaks across a number of major cities. At the national level, home prices have declined 20% from peak, while Toronto saw a 26% decline. Other cities also saw notable declines, like Kitchener-Waterloo (-30%), Ottawa (-9%), Vancouver (-12%), while some cities saw a stabilization in home prices including Halifax & Dartmouth (-2%), Montréal (-1%), Calgary (-3%), and Edmonton (-2%).

Price adjustments are helping to relieve affordability pressures, particularly for prospective buyers who had been priced out in recent years. The reduction in home prices has reduced the monthly mortgage payment that a typical family would need to pay. This decline is especially pronounced in Toronto (-$1,400) and Vancouver (-$1,300), though is also notable in Calgary (-$350) and Halifax (-$200). Mortgage payments have stabilized in Montréal (-$20).

Major Transfers to Provinces and Territories in 2026-27 – Main Estimates

Key Messages

• As stated in the Spring Economic Update, in 2026-27, transfers to other levels of government grew by $4.8 billion from $110.8 billion to $115.6 billion.
• This growth was driven primarily by the four major federal transfers to provinces and territories (table below).

• These are statutory transfers administered by the Department of Finance and are largely unconditional.

Details & Supplementary Information

1. What were the main drivers of the legislated growth in determining the 2026-27 major transfer payments?

• Equalization grows in line with the three-year average growth rate of nominal GDP.
  • The 2026-27 growth track is equal to the average nominal GDP growth in 2024, 2025 and 2026: 3.8 per cent.
• The Canada Health Transfer (CHT) grows at the greater of the three-year average growth of nominal GDP and a legislated minimum rate. On February 7, 2023, the minimum rate was set to 5.0 per cent from 2023-24 to 2027-28. In 2028‑29, it will revert to a 3.0 per cent.
• The 2026‑27 growth track is equal to 5.0 per cent, exceeding average GDP growth in 2024, 2025 and 2026 (3.8 per cent).
• The CST is legislated to grow at 3 per cent per year.
• Territorial Formula Financing increases are mainly due to growth in provincial/local government expenditures, which are major components of the formula.

2. Will the federal government renew sunsetting health-care funding?

• Overall federal support for health care will continue to grow each and every year thanks to the 5% growth guarantee for the Canada Health Transfer until 2027-28, with the CHT continuing to grow at the greater of a three-year moving average of nominal GDP growth or 3% beginning in 2028-29.
• If pressed: No decision has been made regarding the renewal of federal funding for Home and Community Care and Mental Health and Addictions, which were time‑limited and are set to expire in 2026–27, or for Long-term Care, which is set to expire in 2027–28.

3. How do public debt charges compare with health transfers?

• Public debt charges are expected to exceed the Canada Health Transfer in 2026-27 and are expected to continue to do so in each year of the forecast projection.
• By 2028-29 the government will balance day-to-day spending with revenues. At that point deficits will be attributable to investments to support long-term prosperity.
• Despite new nominal highs, debt charges remain relatively low as a share of GDP (currently at a ratio of 1.8%) and are projected to remain sustainable over the medium and long-term.

4. How were the federal transfers allocated by PT in 2025-26 and 2026-27?

5. Equalization and Territorial Formula Financing

General messages

• Equalization is financed by the Government of Canada from general revenues, which are largely raised through federal taxes. All Canadians are subject to the same federal income tax system and its progressive rate structure, regardless of where they live. Provincial governments make no contributions to the Equalization program.
• The broad parameters of the formula are contained in the Federal-Provincial Fiscal Arrangements Act (FPFAA). The Minister of Finance is authorized under the FPFAA to make Equalization payments. This authority is typically renewed every five years to ensure the program is meeting its objectives and using the most up-to-date and accurate measures in the determination of provincial entitlements.
• The federal government consults regularly with provincial governments in support of renewal. We have initiated consultations with provinces and territories for the next renewal, which must take place before March 31, 2029.

5B. Why does the Equalization program pay out more than is required under its own formula?

• Under the current formula, total Equalization payments grow in line with the economy.
• The current formula has provided stable and predictable funding since 2009-10.
• Equalization does not raise the fiscal capacity of recipient provinces above that of non‑recipient provinces. Despite the GDP growth track generating a higher total payout than the formula it superseded, non‑recipient provinces still have greater fiscal capacity than recipient provinces.

5C. Is the fiscal capacity cap unfair in respect of natural resources?

• The Equalization program's treatment of natural resources represents a compromise position from the 2006 Expert Panel that sought to balance the interests of resource-rich provinces with those of resource-poor provinces. The Panel recommended a 50% inclusion rate for resource revenues, with a fiscal capacity cap to prevent Equalization from raising the fiscal capacity of a recipient province above that of a non-recipient province.

5D. Are revenues from hydroelectricity excluded from the calculation of Equalization? Does hydro receive more favourable treatment?

• All natural resource revenues collected by provincial governments are treated in the same way in Equalization, whether they are from hydroelectricity, oil and gas royalties, or any other resources. The current treatment of natural resources reflects the recommendations of the O'Brien Expert Panel in 2006, which balanced the interests of resource-rich and resource-poor provinces.
• If pressed: I am aware of the concerns about how provinces endowed with hydro resources may forego revenues by having low electricity rates. This is an issue that my officials have been working on in past renewals. They have initiated consultations with their provincial and territorial counterparts for the next renewal cycle.

5E. Newfoundland and Labrador and others have requested that Equalization be updated to reflect expenditure need. If it is part of the Constitution, why is it not measured?

• The program has never included a measure of the cost of delivering public services.
• If pressed: The 2006 Expert Panel reported that most provinces supported the current approach focused on fiscal capacity and expressed concern that addressing expenditure need would add further complexity to an already complex program and could also result in indirect intrusions by Canada into decisions that are the responsibility of provinces.

5F. How do you explain Alberta's net fiscal contribution to Canada? Is it fair?

• All Canadians are subject to the same federal income tax system and its progressive income tax rate structure, regardless of where they live. The tax and transfer system takes into account individuals' and businesses' ability to pay and provides support to those who are most in need.
• Canadians in some regions are net fiscal contributors in aggregate while others are net recipients. This is normal in a federation. It reflects the different economies of our regions.
  • Through the tax system, the federal government collects proportionately more revenues in regions whose citizens are more prosperous.
  • In contrast, the residents of regions whose populations are less prosperous on average generally need more support, therefore federal expenditures will be proportionately larger among those citizens through programs such as Employment Insurance, the Canada Child Benefit, the Guaranteed Income Supplement and Equalization in response to those needs.
• Canada is more than a balance sheet. The federal system benefits all Canadians, regardless of whether their province is a net fiscal recipient or a net fiscal contributor. These benefits – including labour mobility and collective investments in national security and defence – are not captured by provincial fiscal balance calculations.

5G. There have been requests for discussions on Equalization and TFF renewal . When do you plan on resuming those discussions?

• Federal officials have initiated consultations with their provincial and territorial counterparts for the next renewal cycle.
• The federal government consults regularly with provincial and territorial governments in support of renewal. The next renewal must take place before March 31, 2029.

5H. Does Equalization reduce economic growth incentives?

• It is doubtful that a provincial government would prefer to rely on Equalization payments rather than on its own fiscal revenues from economic growth. Economic growth provides greater overall benefits to both the provincial government and the province's residents.

5I. Should there be a permanent independent body advising on the allocation of Equalization?

• The rules for the allocation of Equalization are set out in legislation and regulations. Annual payments are determined in accordance with the legislation and regulations.
• This framework is reviewed every five years. The federal government consults regularly with provincial and territorial governments in support of renewal. The next renewal must take place before March 31, 2029.
• The Expert Panel reported that the majority of provinces indicated there was no need for an independent body to advise on Equalization. While there is room for improvement in the current intergovernmental process, most preferred that process to an arms-length body.

6. What is the Quebec Abatement and how does it work?

• The Quebec Abatement consists of a reduction of 16.5 percentage points of federal personal income tax for all tax filers in Quebec, representing approximately $8.4 billion in 2026-27.
• During the 1960s and 1970s, provinces were given the option to accept federal tax points (i.e., "abatement") in lieu of cash federal support for certain social programs such as hospital insurance, social welfare or youth allowances. Abatement would allow a province to increase its provincial tax rate by an equivalent amount with no impact on its taxpayers. Quebec was the only province that took up the federal offer.
• Since major federal transfers to Quebec are calculated on the same basis as those to other provinces, the abated amounts must be recovered. This has no net impact on Quebec's total federal transfers.

*Table Redacted*

*Table Redacted*

*Table Redacted*

Note:

Summary: The table covers most major transfers (about 95%), excludes one-time COVID-related payments, and uses Public Accounts data up to 2024–25, *redacted*.

Detailed: Table does not cover all transfers to provinces and territories.  Most significant transfers, representing about 95% of the total are included.  The table excludes most COVID-related transfers (e.g., Safe Restart Agreement, Canada Health Transfer additional payments) given one-time nature of those transfers and to show underlying growth over time.  Figures up to 2024-25 drawn from Public Accounts. *Redacted*.

Committee Member Biographies
Standing Committee on Finance (FINA)

About the Committee

The mandate of the Standing Committee on Finance, as established under Standing Order 108 of the Standing Orders of the House of Commons, is to examine and enquire into all matters referred to it by the House and to send for persons, papers, and records, as it operates in accordance with its mandate.

Standing committees are empowered to study and report on all matters relating to the mandate, management and operation of the department or departments of government that are assigned to them from time to time by the House. For the Standing Committee on Finance, these include the Department of Finance and the Canada Revenue Agency.

The committee also has the responsibility to consider budgetary policy, as outlined in Standing Order 83.1, including studies on proposals for the government's budgetary policy and the budget itself. The committee normally undertakes its pre-budget consultations during the first sitting week of September and presents its report by the third last sitting day in December, as outlined in Standing Order 28(2).

In each parliamentary session, the committee's work may include:

• pre-budget consultations;
• briefing sessions by departmental officials on federal programs;
• examination of planned expenditures of the Department of Finance and the Canada Revenue Agency;
• a review of Order in Council appointments;
• a review of Monetary Policy Reports of the Governor of the Bank of Canada;
• a review of the Minister of Finance's economic and fiscal updates;
• consideration of proposed legislation;
• special studies on topics within the committee's mandate; and
• consideration of reports of subcommittees.

Conservative Party

Sandra Cobena
Conservative, Newmarket—Aurora (Ontario)

Biography

Sandra Cobena was first elected as the Member of Parliament for Newmarket—Aurora in 2025. In addition to being a member of FINA, Ms. Cobena is a counsellor for the Canadian Section of ParlAmericas.

Before entering politics, Ms. Cobena worked as a senior manager at TD Bank. Her professional background includes advising Ontario-based companies on a wide range of financial strategies related to mergers, acquisitions, growth, and restructuring.

Ms. Cobena immigrated to Canada from Ecuador as a teenager. She holds a master's degree in management from the London School of Economics and a combined honours degree in global commerce and finance from Western University.

Overview of Issues Raised

In committee, Ms. Cobena's questions have focused on the government's overall management of the economy. She has expressed concern about the government's fiscal anchors, deficit levels, and debt management. She regularly speaks to cost-of-living concerns of Canadians.

In the House, Ms. Cobena has spoken about affordability concerns, economic growth, and support for law enforcement to ensure community safety.

Private Members' Bills and Motions

In March 2026, Ms. Cobena introduced Bill C-270, An Act to amend the Criminal Code (defence of person), which currently sits at second reading in the House. The bill seeks to change Canada's self-defence laws by amending the Criminal Code to add presumptions in relation to the defence of person when someone knowingly and unlawfully enters a home.

Jasraj Hallan, Vice-Chair
Conservative, Calgary East (Alberta)
Opposition Critic for Finance

Biography

Jasraj Hallan has been the Member of Parliament for Calgary East since 2019. He is the Opposition Critic for Finance—continuing this role from the 44th Parliament.

Before his role as finance critic, he served as Opposition Critic for Immigration, Refugees and Citizenship from 2021 to 2022. In that role, Mr. Hallan's parliamentary activities largely focused on issues related to Canada's immigration system, application backlogs and processing time, and temporary foreign workers.

Mr. Hallan was raised in northeast Calgary, where he earned an accounting diploma from the Southern Alberta Institute of Technology. He has a certified Master Builder designation and ran a homebuilding business in Calgary.

Overview of Issues Raised

Mr. Hallan's questions have focused on the government's management of the economy and its impact on living standards (i.e., affordability and GDP per capita), productivity levels, and job creation. He regularly asks witnesses about the sustainability of the government spending. Last session, he initiated a study in committee on the impact of inflation and interest rates on mortgages.

Mr. Hallan has also expressed interest in Canada's energy and natural resources sectors, namely oil and gas. He has questioned government regulation of the sector and the impact of phasing out fossil fuels on the economy and workers. In line with his party's position, Mr. Hallan has advocated for repealing the Impact Assessment Act and Canadian Energy Regulator Act, and Oil Tanker Moratorium Act.

Pat Kelly
Conservative, Calgary Crowfoot (Alberta)

Biography

Pat Kelly has been the Member of Parliament for Calgary Crowfoot since 2015. He is the Associate Opposition Critic for Prairie Economic Development and Economic Advisor to the Conservative Leader.

Prior to his election, Mr. Kelly worked as a mortgage broker and co-owned a brokerage. He served as President of the Alberta Mortgage Brokers' Association and sat on the Real Estate Council of Alberta, a provincial regulatory body. He also taught pre-licensing education at Mount Royal University.

Mr. Kelly graduated from the University of Calgary with a bachelor's degree in political science.

Overview of Issues Raised

In the House, Mr. Kelly has spoken about Canada's economic position, regulatory barriers to natural resources development, and affordable housing for the Canadian military. In line with his party's position, he opposes additional government spending and regulatory barriers to natural resources projects. He has advocated for repealing the Impact Assessment Act and Canadian Energy Regulator Act, and Oil Tanker Moratorium Act.

Private Members' Bills and Motions

During the 44th Parliament, Mr. Kelly introduced Bill C-266, An Act to amend the Excise Act and the Excise Act, 2001 (adjusted duties - beer, malt liquor, spirits and wine), which was dropped from the Order Paper with the 2025 election. The bill aimed to repeal or amend sections that provide for annual adjustments to the duties imposed on beer, malt liquor, spirits and wine.

Éric Lefebvre
Conservative, Richmond—Arthabaska (Quebec)

Biography

Éric Lefebvre was first elected as the Member of Parliament for Richmond—Arthabaska in 2025. Mr. Lefebvre is the Associate Opposition Critic for Finance.

Mr. Lefebvre was previously a member of the National Assembly of Quebec representing the electoral district of Arthabaska from 2016 to 2025. He was a member of the Coalition avenir Québec (CAQ) until he sat as an independent in 2024. From 2018 to 2024, he was Chief Government Whip.

From 2001 to 2008, Mr. Lefebvre was a city councillor in Victoriaville, Quebec. He left the position to run in the 2008 federal election. During this time, he worked as a senior assistant to former Conservative minister Denis Lebel.

He holds a bachelor's degree in physical education from the Université du Québec à Trois-Rivières.

Overview of Issues Raised

In committee, Mr. Lefebvre has raised questions on the government's overall management of the economy. He has questioned the government's transparency over its fiscal anchors and debt management. He has spoken to supporting seniors' cost-of-living and financial security, highlighting increased fraud committed against seniors. In the House, Mr. Lefebvre has sought information on Canada's fiscal position and deficit projections.

Bloc Québécois

Jean-Denis Garon, Vice-Chair
Bloc Québécois, Mirabel (Quebec)

Biography

Jean-Denis Garon has been the Member of Parliament for Mirabel since 2021. He is the Bloc Québécois Critic for Finance, National Revenue, and Aeronautics.

In Parliament, Mr. Garon previously served as Vice-Chair of the Standing Committee on Industry and Technology (INDU) and Standing Joint Committee for the Scrutiny of Regulations (REGS). During that time, he was also the Bloc Critic for Industry and Entrepreneurship.

Before entering politics, Mr. Garon was an economics professor at Université du Québec à Montréal's (UQAM) School of Management, teaching at the undergraduate, master's and doctoral levels. Moreover, he was an economic columnist and commentator for the Journal de Montréal, TVA, QUB radio, CKOI among other media. He also served as Vice-President of Knowledge Transfer at CIRANO (Centre interuniversitaire de recherche en analyse des organisations)—a Quebec-based research centre.

Mr. Garon holds a PhD in economics from Queens University, and bachelor's and master's degrees in economics from UQAM.

Overview of Issues Raised

In the House, Mr. Garon has spoken on a range of issues, including tax fraud, privacy and data protection, support for small businesses, and climate change mitigation. He has expressed concern about the impact of open banking on credit unions and provincially regulated financial institutions, arguing that participation should be optional for them. According to his website, his priorities include increasing the Canada Health Transfer, automatic enrolment for the Guaranteed Income Supplement, creating a tax credit for working seniors, ending fossil fuel subsidies, and developing a national aerospace strategy. In line with his party's stance, he advocates for Quebec's interests and increased autonomy over its own affairs.

Private Members' Bills and Motions

During the 44th Parliament, Mr. Garon introduced Bill C-290, An Act to amend the Public Servants Disclosure Protection Act and to make a consequential amendment to the Conflict of Interest Act, which dropped from the Order Paper with the 2025 election. The bill aimed to expand the application of the Act to additional categories of public servants and extend the period for filing a reprisal complaint.

Liberal Party

Hon. Karina Gould, Chair
Liberal, Burlington (Ontario)

Biography

Karina Gould has been the Member of Parliament for Burlington since 2015.

In Parliament, she has held several roles including Leader of the Government in the House, as well as the Minister of Families, Children and Social Development, Minister of International Development, and Minister of Democratic Institutions.

Before entering politics, Ms. Gould worked as a trade and investment specialized for the Mexican Trade Commission in Toronto, a consultant for the Migration and Development Program at the Organization of American States in Washington, D.C. She also spent a year volunteering at an orphanage in Mexico.

In addition, she has volunteered in her community for several organizations including the Iroquoia Bruce Trail Club, the Burlington chapter of the Canadian Federation of University Women, the Mississauga Furniture Bank, Halton Women's Place, among others.

Ms. Gould attended McGill University and University of Oxford.

Overview of Issues Raised

As chair, Ms. Gould's role is focused on maintaining order and outlining procedures. Although she will occasionally ask witnesses clarifying questions, she typically does not intervene to express her views on a given matter.

Steeve Lavoie
Liberal, Beauport—Limoilou (Quebec)

Biography

Steeve Lavoie was first elected as the Member of Parliament for Beauport—Limoilou in 2025.

Before entering politics, Mr. Lavoie spent over 25 years in the financial sector. He was an associate vice-president for the commercial sector of a financial institution. He also served as President and CEO of the Quebec City Chamber of Commerce and Industry in June 2020. In addition, Mr. Lavoie served on approximately ten boards of directors to support organizations working to strengthen the region's economic ecosystem, and he is a member of two regional councils. He is also a Certified Corporate Director (CCD).

Mr. Lavoie holds a master's degree in workplace human resources management and a bachelor's degree in accounting from the Université du Québec à Rimouski.

Overview of Issues Raised

In committee, Mr. Lavoie's questions have focused on the economic benefits of government actions. During FINA's study of household debt, he asked witnesses about Canadians' ability to access credit, consumer behaviour pre- and post-pandemic, and insolvency rates.

Carlos Leitão
Liberal, Marc-Aurèle-Fortin (Quebec)

Biography

Carlos Leitão was first elected as the Member of Parliament for Marc-Aurèle-Fortin in 2025.

Mr. Leitão was previously a member of the National Assembly of Quebec representing the electoral district of Robert-Baldwin from 2014 to 2022. He was a member of the Quebec Liberal Party and served as Quebec's Minister of Finance from 2014 to 2018.

Mr. Leitão worked in the financial sector for over 30 years. He held different roles at the Royal Bank of Canada before becoming Chief Economist of Laurentian Bank Securities in 2003.

Mr. Leitão immigrated with his family to Canada from Portugal in 1975. He holds a bachelor's degree in economics from McGill University.

Overview of Issues Raised

In committee, Mr. Leitão's questions typically focus on the context surrounding government actions, particularly Canada's trade relationship with the U.S. In the House, Mr. Leitão has spoken about the need for trade diversification and business supports due to U.S. tariffs.

Kent MacDonald
Liberal, Cardigan (Prince Edward Island)

Biography

Kent MacDonald was first elected as the Member of Parliament for Cardigan in 2025.

Before entering politics, Mr. MacDonald operated Pondsedge Farms, his family's dairy and beef operation. He is a past director, vice-chair and chair of Dairy Farmers of PEI., as well as director and vice-chair of the PEI Federation of Agriculture. 

Overview of Issues Raised

In committee, Mr. MacDonald's questions typically focus on the impact of government actions on Atlantic Canadians. He has expressed interest in measures that support small agricultural producers and businesses. In the press, he has expressed support for removing interprovincial trade barriers, increasing defence spending, and defending supply management. He also expressed interest in the condition of local wharves following damage from Hurricane Fiona.

Danielle Martin
Liberal, University—Rosedale (Ontario)

Biography

Danielle Martin was first elected as the Member of Parliament for University—Rosedale in April 2026 during a byelection.

Ms. Martin became a family physician in 2005. She served as executive vice-president of Women's College Hospital. She has also led the department of family and community medicine at the University of Toronto. In addition, Ms. Martin helped found Canadian Doctors for Medicare and chaired its board until May 2023.

Ms. Martin gained international attention in 2014 while presenting to a U.S. Senate committee during its study of countries with single-payer healthcare systems. In 2017, she took part in U.S. Senator Bernie Sanders campaign for a government-funded, single-payer healthcare system—similar to Canada's system.

Jake Sawatzky
Liberal, New Westminster—Burnaby—Maillardville (British Columbia)

Biography

Jake Sawatzky was first elected as the Member of Parliament for New Westminster—Burnaby—Maillardville in 2025.

Mr. Sawatzky received a bachelor's degree in neuroscience from the University of British Columbia (UBC) in 2024. During his time at UBC, he was a member of Beta Theta Pi fraternity and served as co-president of their annual hockey event, Drop the Puck for Mental Health, to raise funds for the Canadian Mental Health Association.

Overview of Issues Raised

In committee, Mr. Sawatzky's questions typically focus on the impact of government actions on young Canadians. He has also expressed support for measures that support low-income Canadians and those living with disabilities. Recently, Mr. Sawatzky has raised concerns about the prevalence of sports betting and its impact on the financial and mental wellbeing Canadians. In the press, Mr. Sawatzky has spoken about mental health and addiction, affordable housing, and public safety.

Ryan Turnbull
Liberal, Whitby (Ontario)

Parliamentary Secretary to the Minister of Finance and National Revenue and to the Secretary of State (Canada Revenue Agency and Financial Institutions)

Biography

Ryan Turnbull has been the Member of Parliament for Whitby since 2019. He is the Parliamentary Secretary to the Minister of Finance and National Revenue and to the Secretary of State (Canada Revenue Agency and Financial Institutions).

In Parliament, Mr. Turnbull previously served as Parliamentary Secretary to the Minister of Innovation, Science and Industry as well as to the Deputy Prime Minister and Minister of Finance.

Before entering politics, Mr. Turnbull taught at various post-secondary institutions in Canada and abroad. He taught business ethics at corporate social responsibility at Ted Rogers School of Business Management. Mr. Turnbull founded a management consulting company, Eco-Ethonomics Inc., focused on social innovation and ethics. The company completed over 350 contracts on projects such as gender-based violence prevention, youth mental health and resiliency building, and environmental monitoring.

Mr. Turnbull holds bachelor's and master's degrees in philosophy from Carleton University.

Overview of Issues Raised

As parliamentary secretary, Mr. Turnbull's role in committee focuses on supporting the work of the minister and initiating committee studies on the department-led legislation. That said, he has regularly asked questions to witnesses on a range of issues, including climate change mitigation, sustainable finance, and support for small businesses.

Committee Member Biographies
Standing Senate Committee on National Finance (NFFN)

Mandate

The Standing Senate Committee on National Finance has the mandate to examine matters relating to federal estimates generally, including the public accounts and reports of the Auditor General; as well as government finance. In addition, the committee has investigated other topics of interest and importance to the country.

History

The Committee was first created in May 1919 as the Committee on Finance, and in 1968, was renamed the Committee on National Finance. The committee's field of interest is government spending, either directly through the estimates or indirectly through bills that provide borrowing authority or bear upon the spending proposals identified in the estimates. The committee also has a mandate to examine reports of the Auditor General.

Independent Senators Group

Pierre Dalphond
Independent Senators Group (Quebec - De Lorimier)

Pierre Dalphond was appointed to the Senate of Canada on June 6, 2018.

Senator Dalphond holds a law degree from the University of Montreal and a M. Phil. In Philosophy, Politics and Law from Oxford University, U.K.

He began his professional career in Ottawa (clerk to the Supreme Court of Canada, then legislative advisor to the Privy Council) before moving to Montreal to join a national firm, where he practised corporate and business law.

In 1995, he was appointed a Justice of the Quebec Superior Court. In 2002, he was elevated to the Quebec Court of Appeal. He wrote leading judgements on language rights, freedom of association, freedom of speech, treaty rights, separation of powers, class action, sharing of parental responsibilities and abuse of judicial process.

Throughout his career, he has written numerous legal articles, taught in faculties, given talks in Canada and abroad and organized training programs for judges (notably China, Brazil and Rwanda). He has been regularly involved with various social, cultural and political organizations.

In recognition of Senator Dalphond's contributions, he was made a graduate emeritus of the University of Montreal. He was also awarded the Queen's Golden Jubilee Medal and the Governor General's Academic Medal and was made an honorary member for life of the Young Bar of Montreal.

Éric Forest, Deputy Chair
Independent Senators Group (Québec – Gulf)

Éric Forest was appointed to the Senate of Canada on November 23, 2016.

Senator Forest has worked for the development of Eastern Quebec for over 40 years. As the Mayor of Rimouski from 2005 to 2016, he engaged in the Rimouski community through a strategic plan that guides the development of a respectful, united community. Under his leadership, Rimouski is now recognized as one of the best cities to live in Canada, with a strong cultural vitality and an economic structure geared to the knowledge economy.

He entered politics at age 27, as a councillor in Pointe-au-Père – and was elected mayor two years later. After spending some time in the business community, as the co-owner and vice-president of a car dealership, he returned to politics in 1994, as a councillor with the City of Rimouski, before becoming mayor. From 1995 to 2005, he was vice-president and director general of the Océanic hockey club, where he set the goal of making the Océanic an instrument for social cohesion for all of Eastern Quebec.

As Mayor of Rimouski, he chaired the Union of Quebec Municipalities (UMQ) for almost four years, from 2010 to 2014, in the context of a major crisis of confidence by citizens toward their municipal elected officials. His commitment helped to bring together the municipal sector, through two provincial summits that led to the preparation of a white paper on the future of municipalities.

While Chair of the UMQ, he also implemented a social and professional integration project that enabled youth from youth centres to have an enriching work experience within their city's municipal team. In 2014, he received the Jean-Paul L'Allier Award, which honours a Quebec elected official for outstanding vision, leadership and achievements in urban planning and land use planning. Mr. Forest is also very active in numerous social causes and is particularly committed to encouraging young people and women to become involved in politics, within the scope of his responsibilities with the UMQ and the L'Effet A movement.

Rosa Galvez
Independent Senators Group (Québec – Bedford)

Senator Galvez was appointed to the Senate on December 6, 2016, representing Québec (Bedford).

Senator Galvez, originally from Peru, is one of Canada's leading experts in pollution control and its effect on human health. She has a Ph.D. in Environmental Engineering from McGill University and has been a professor at Université Laval à Québec since 1994, heading the Civil and Water Engineering Department from 2010 to 2016. She specializes in water and soil decontamination, waste management and residues, and environmental impact and risk assessment.

Throughout her career, she has been requested by private, governmental and community organisations to offer expert advice. She has also advised a number of international organisations including on Canada-US and Quebec-Vermont agreements regarding the protection of the Great Lakes and the St. Lawrence River. She also conducted an important study on the catastrophic oil spill at Lac-Mégantic.

Senator Galvez is a member of the Ordre des ingénieurs du Québec, the Canadian Society for Civil Engineering and Engineers Without Borders. Her research has led her around the world to countries such as France, Italy, Belgium, Japan and China.

She lives in Quebec with her partner, Luke, and has three children, Virginie, Lydia and Francisco.

Martine Hébert
Independent Senators Group (Quebec - Victoria)

Martine Hébert was appointed to the Senate of Canada in February 2025. Before her appointment, Ms. Hébert was a media economic analyst and lecturer. In recent years, she has served as Quebec's Delegate in Chicago (2019-2021) and Quebec's Delegate General in New York (2021-2024). She has also served as Senior Vice-President, Quebec, and National French Spokesperson for the Canadian Federation of Independent Business (CFIB), where she worked for nearly 10 years. Prior to that, Ms. Hébert ran her own public affairs firm and worked for the Ordre des conseillers en ressources humaines agréés du Québec.

Throughout her professional life, she has collaborated on the development of public policies, laws and regulations in several major sectors of the Quebec and Canadian economy. She has been an associate commissioner for the Great Lakes Commission, a member of the board for the Commission des normes, de l'équité, de la santé et de la sécurité du travail, a member of Quebec's Commission des partenaires du marché du travail, co-chair of Quebec's Comité-conseil sur l'allègement réglementaire et administratif , and a member of Quebec's Comité consultatif du travail et de la main-d'œuvre. She has also done community work for many years, notably as the chair of the board of directors for the Centre des femmes du Plateau Mont-Royal.

Ms. Hébert has a Bachelor of Economics and a Master of Economics from the Université de Montréal. She has been recognized for her achievements, notably by the Université de Montréal, which awarded her the title of Honoured Graduate in recognition of her outstanding career in 2010.

As a senator, Ms. Hébert intends to use her expertise in areas where she has worked over the course of her career, including economic development, public finance, international relations, the environment and energy. She also intends to contribute to the advancement of issues that are important to her, such as diversity and inclusion, gender equality, minority and 2SLGBTQI+ rights, and women's reproductive health, to name but a few.

Joan Kingston
Independent Senators Group (New Brunswick)

Joan Kingston was appointed to the Senate in October 2023.

Senator Kingston is a registered nurse and a former member of the Legislative Assembly of New Brunswick. She is currently a consultant with the University of New Brunswick's (UNB) Faculty of Nursing, having recently retired from UNB after 10 years as nurse manager, co-manager of the Fredericton Downtown Community Health Centre, and a lecturer and clinical instructor.

Before her work with UNB, Ms. Kingston worked as a principal secretary for government affairs in the Office of the Premier of New Brunswick, and as a senior advisor to the Policy and Priorities Committee of the Cabinet of New Brunswick, from 2006 to 2010. She also served as a senior policy advisor in the Office of the Official Opposition from 2002 to 2006.

From 1995 to 1999, Ms. Kingston served as Member of the Legislative Assembly for New Maryland and, as a minister, she led various portfolios including Labour, Environment, and Human Rights. She also led the Minister's Advisory Committee on Multiculturalism and chaired the New Brunswick Advisory Council on the Status of Women.

Ms. Kingston is an active community member and health advocate. She is the Chairperson of the Community Action Group on Homelessness and has been a member of the Specific Patient Oriented Research Network in Primary and Integrated Health Care Innovations, United Way Central New Brunswick, and the Fredericton Non-Profit Housing Corporation. She is a member of the Canadian Nurses Association, past president of the Nurses Association of New Brunswick, and was awarded a life membership in 2021. Ms. Kingston is a past co-chair of the Atlantic Centre of Excellence for Women's Health Steering Committee, and a founding member of the predecessor to the Canadian Association of Perinatal and Women's Health Nurses.

Ms. Kingston was inducted as Fellow of the Canadian Academy of Nursing in 2021. She holds a Bachelor of Nursing from the University of New Brunswick.

Jane MacAdam
Independent Senators Group (Prince Edward Island)

The Honourable Jane MacAdam, FCPA, CA, was appointed to the Senate of Canada in May 2023. Before she was summoned to the Senate, Senator MacAdam served as the Auditor General of Prince Edward Island from 2013 to 2020. Serving Islanders, she was responsible for leading independent audits and examinations that provide objective information, advice and assurance to the Legislative Assembly and promoting accountability and best practices in government operations.

She is a chartered professional accountant with over 40 years of experience in legislative auditing in the Office of the Auditor General of Prince Edward Island. This involved conducting various audits and examinations ranging from financial audits on the Public Accounts of the Province, crown corporations and agencies, as well as performance audits and examinations on a broad range of topics including but not limited to social assistance, health care, education, economic development, and housing programs to broader issues such as governance, performance reporting, lottery and gaming, and climate change.

Throughout her career, she has been a member of various professional organizations, including the Canadian Council of Legislative Auditors and several of its committees including strategic matters, governance, and health.

Ms. MacAdam has been a longtime member of the Canadian Audit and Accountability Foundation, a foundation dedicated to advancing public sector performance audit, oversight, and accountability in Canada and abroad. Moreover, in 2022 she completed a three-year volunteer term on the Board of Directors of this Foundation.

In 2022, Ms. MacAdam was appointed to the Departmental Audit Committee for Veterans Affairs Canada and served as its Chair prior to her appointment to the Senate. Ms. MacAdam was awarded a Fellow designation from the Chartered Professional Accountants of Prince Edward Island, in recognition of her exceptional leadership and service to the profession.

Ms. MacAdam holds a Bachelor of Business Administration from the University of Prince Edward Island and is a member of CPA Prince Edward Island.

She and her husband are longtime residents of the Morell area and have three adult children, Robert, Mitchell and Emily and five grandchildren.

Conservative Senators

Claude Carignan, Chair
Québec (Mille Isles)

The Honourable Claude Carignan, P.C., was appointed to the Senate by Prime Minister Stephen Harper on August 27, 2009, and was Leader of the Opposition from November 2015 to March 2017.

Before he was Leader of the Opposition in the Senate, in August 2013, Claude Carignan was appointed by the Prime Minister to the position of Leader of the Government in the Senate and was also a member of Cabinet until fall 2015. As Leader of the Government in the Senate, Claude Carignan was responsible for planning and managing the government's legislative agenda in the Senate. Prior to that, in May 2011, he was appointed Deputy Leader of the Government.

In 2010, Claude Carignan joined Dufresne Hébert Comeau Avocats as counsel, while being a Senator. His legal expertise in public law and his experience in the municipal sector continue to serve him well when advising the firm's clients. In 2017, Senator Carignan was appointed Senior Vice President and Head Corporate Affairs with Réseau Sélection, a leading company in Canada among private actors in the area of retirement complexes.

Claude Carignan also played an active role in several committees and commissions in the Metropolitan Community of Montreal and served as vice-warden of the Regional Council Municipality of Deux-Montagnes. From 2005 to 2009, he was vice-president of both the Conseil inter-municipal de transport des Laurentides and the Association des Conseils intermunicipaux de transport du Québec. From 2007 to 2009, he was president of the Centre for Expertise and Research on Infrastructures in Urban Areas, a non-profit organization that grew out of the need to rehabilitate municipal infrastructure efficiently and with acceptable costs.

While practising law, Claude Carignan also taught public and labour law at the Université de Montréal Faculty of Law and at the Université du Québec à Montréal. He also taught at the École nationale d'administration publique (ENAP). Mr. Carignan was elected mayor of Saint-Eustache in November 2000 and devoted himself to the harmonious social, economic and environmental development of his city.

Claude Carignan holds a law degree from the Université de Sherbrooke, Quebec, and a graduate degree in public law from the Université de Montréal. He has worked as a lawyer since his admission to the Quebec Bar in 1988, specializing in civil litigation, public law, labour relations, and health and social services law. He is coauthor of Loi annotée sur les décrets de convention collective, published by Wilson & Lafleur in 1990.

Progressive Senate Group

Andrew Cardozo
Progressive Senate Group (Ontario)

Senator Andrew Cardozo was appointed to the Senate of Canada in November 2022.

Senator Cardozo is a public policy expert, with expertise that spans Canadian government and politics, broadcasting and cultural policy, multiculturalism, diversity, and skills development, especially the future of work.

Before joining the Senate, he was the President and co-founder of the Pearson Centre for Progressive Policy. Over a decade in that role, he worked to elevate open public policy dialogue by bringing together thought leaders from all political backgrounds, from business, labour, NGOs, and the broader public to address the major challenges facing Canadian society. Prior to that, he was the Executive Director of the Alliance of Sector Councils, working on skills development across some 30 economic sectors, and Executive Director of the Canadian Ethnocultural Council, where he worked on policies and legislation on employment equity, immigration, multiculturalism, and the Canadian constitution. 

He has served as a Commissioner of the Canadian Radio-television and Telecommunications Commission (CRTC) where he championed Canadian content and diversity in broadcasting. Additionally, he played a key role in the licensing of the Aboriginal Peoples Television Network (APTN).  Since then, he has volunteered as an adjudicator for the Canadian Broadcast Standards Council and is a regular speaker at industry events.

Senator Cardozo has been an Adjunct Professor and Lecturer at the School of Journalism and Communication at Carleton University and over the years has been a columnist for the Toronto Star, Broadcast Dialogue, and the Hill Times.  

Senator Cardozo holds a Bachelor of Arts (Honours) in Political Science from York University and a Master of Arts in Public Administration from Carleton University. He has also studied art at the Ottawa School of Art.

Since becoming a senator, Cardozo has focused on reviewing legislation, served on the Security and National Defence and Transport and Communications Committees, and chaired the Arts and Heritage Advisory Group. He prioritizes Canada-US relations, political polarization, media challenges, the future of CBC/Radio-Canada, and the pedestrianization of Wellington Street to enhance security and public access.

Canadian Senators Group

Clément Gignac
Canadian Senators Group (Quebec - Kennebec)

The Honourable Clément Gignac is an economist with over 35 years of experience in the public and private sectors. He was appointed as Senator on July 29, 2021.

From 2012 until he became a Senator, Mr. Gignac held the position of Senior Vice-President and Chief Economist at iA Financial Group. He was the Group's spokesperson on economic matters and chaired the Asset Allocation Committee.

Prior to joining iA Financial Group, Mr. Gignac worked as an economist and strategist for major financial institutions, including as Vice-President and Chief Economist for National Bank Financial from 2000 to 2008.

In 2009, Mr. Gignac was elected as a member of the National Assembly of Québec. He was named Minister of Economic Development, Innovation and Export Trade in the Quebec government, and went on to serve as Minister of Natural Resources and Wildlife from 2011 to 2012.

On the international scene, he chaired the World Economic Forum's council on competitiveness in 2012. He is also an associate member of the Conference of Business Economists, a group of distinguished global economists based in Washington, D.C.

In June 2022, he was appointed chair of the board of the Collège des administrateurs de sociétés.

Mr. Gignac was awarded the Gloire de l'Escolle medal from Université Laval and is an honorary member of the Association des économistes québécois, a prestigious distinction that has only been bestowed upon 10 people since its inception in 1992.

Senator Gignac holds a bachelor's degree and a master's degree in economics from Université Laval. He is a married father of three and the proud grandfather of five.

Mary Robinson
Canadian Senators Group (Prince Edward Island)

Leading up to her appointment in January 2024, Senator Robinson had spent her life involved in many facets of agriculture including agronomy, primary production, marketing, processing, and advocacy.

For the past three decades, she has been a managing partner of a 6th generation Prince Edward Island family farm and agribusiness. She started her advocacy as a county representative within the Prince Edward Island Federation of Agriculture board of directors. She has served as President of the PEIFA, as the first female Chair of the Canadian Agriculture Human Resource Council and as first female President of the Canada's largest farm lobby group, the Canadian Federation of Agriculture. Senator Robinson was elected as the Vice President of the World Farmers' Organization in May of 2023.

While building and running her business, Senator Robinson also played an active role in her community for many years. She was a founding member of a community band, member of Home and School, and volunteer for her children's sporting events.

Senator Robinson and her husband live in Charlottetown, Prince Edward Island and have two university-age children.

Krista Ross
Canadian Senators Group (New Brunswick)

Krista Ross was appointed to the Senate of Canada representing New Brunswick on October 31, 2023.

Ms. Ross is a business and community leader who worked with the Fredericton Chamber of Commerce for 20 years (from 1989 to 1997 and from 2011 to 2023). During her time with the organization, Ms. Ross served for 12 years as Chief Executive Officer and for eight years as general manager. In these roles, she was a leading voice supporting Fredericton and New Brunswick's development as a place of opportunity for individuals, businesses and community organizations.

In addition to her work with the Chamber of Commerce, Ms. Ross was also a private business owner and entrepreneur for many years.

Ms. Ross recently served as a commissioner with the Electoral Boundaries and Representation Commission for New Brunswick. She also serves on the board of the Fredericton Community Foundation, the University of New Brunswick Business Faculty Advisory Board, and the Ignite Fredericton Seed Board. She is an active supporter of immigration, and she provides mentorship and support to newcomers in Canada.

Ms. Ross has been celebrated for her community involvement and business leadership. She was recently named to the Chamber of Commerce Executives of Canada's Council of Excellence, twice named Chamber Executive of the Year in Canada, and named a Top 50 CEO for Atlantic Canada. She is also a recipient of the Advocacy in Action Silver Award from the Canadian Chamber of Commerce. In 2022, she was recognized by the New Brunswick Community College as an Alumna of Distinction; she also received the Queen Elizabeth II Platinum Jubilee Medal.

She holds a business diploma from the New Brunswick Community College. Ms. Ross and her daughter, Rachel, reside in Fredericton.