Canada’s budget, titled *Masters of Our Destiny*, puts C$142.1 billion in new spending and tax measures toward reducing dependence on the United States amid Donald Trump’s trade war, drawing on most of C$158.3 billion in anticipated windfall revenues over five years.

The deficit is projected at C$62.3 billion in 2026-27 and C$62.5 billion in 2027-28, then gradually falls to C$52.9 billion by 2030-31; the government aims to cover day-to-day operating costs with revenues beginning in 2027-28.

A central plank is Catalyzing Growth, which includes mobilizing private capital, a permanent Productivity Mega Deduction, the Canada Strong Fund, and investments in electricity, nuclear energy and critical minerals, alongside a plan to double grid capacity by 2050.

The Canada Growth Incentive would let Canadian-resident founders, early-stage employees and investors exempt up to C$15 million in capital gains on qualifying shares in an eligible Canadian company; the exemption is subject to business and shareholding rules, including a minimum 36-month holding period.

The budget also proposes immediate deductions for qualifying investments, estimated to lower Canada’s effective tax rate on new investment to 6.4% at a five-year cost of C$36 billion, and a small-business rollover to give sellers more time to acquire replacement shares.

The National Angel Capital Organization says the measures could strengthen early-stage mentorship, networks and commercialization expertise, pointing to a funding gap in which only 4% of 7,717 companies approaching angel networks received funding in 2025.

The Productivity Mega Deduction would permanently allow immediate deductions for a broader range of capital assets, while the budget also includes C$400 million over seven years to speed industrial energy-efficiency upgrades, help more than 800,000 households obtain heat pumps and install up to 55,000 EV charging stations.

Housing measures include insured financing rules taking effect Feb. 1, 2027, that would support triplexes and fourplexes with up to 90% financing and no property-value cap or owner-occupancy requirement; some eligible rental properties could qualify for amortizations of up to 50 years.

Critics caution that housing measures may take time to reach Canadians, with long waits for new projects continuing.

Affordability remains a pressure point as wage growth lags inflation and food-bank use rises; the Conservatives call for energy relief and lower immigration, while the NDP advocates wealth taxes and government-led health and grocery initiatives.

Measures aimed at seniors include easier claims for home-accessibility renovations, changes to Canada Post, GST/HST relief on certain cancer-treatment devices and a national anti-fraud strategy, though the Bloc Québécois says senior-care funding is insufficient.

The budget proposes stronger financial oversight through improved data-sharing among regulators, expanded consumer safeguards and broader anti-money-laundering and anti-terrorist-financing rules covering precious-metals and stones dealers.