Canada releases 2026 federal budget with major infrastructure and defence spending

Canada's federal government released its second budget under Prime Minister Mark Carney on November 5, 2026. The budget includes heavy spending on infrastructure and defence. The government will spend $11.3 billion to build six new icebreakers for the Canadian Coast Guard, with construction planned for Quebec. The budget also supports a drone programme to develop military systems made in Canada. Two major energy projects, an oil pipeline and a port terminal, have been approved for fast-track development. The deficit this year is nearly double last year's figure. It is the twelfth year in a row that the government has spent more than it earns. The finance minister expects the budget to be balanced by 2028.