OTTAWA — A windfall from Canada's spring economic update has already been spent, according to the Chartered Professional Accountants of Canada (CPA Canada). While the update paints a better-than-expected picture, much of the good news has been allocated, leaving little room for the government's growth and productivity agenda.
CPA Canada's analysis
“The economic changes are lopsided towards improved government revenues rather than any real change in government spending,” said David-Alexandre Brassard, chief economist with CPA Canada. “With revenues revised upward, the government didn’t have to deliver the substantial savings in operating expenses it had outlined — and in fact fell short by about $30 billion in projected savings.”
The optimistic forecast is backed by high oil prices and Canada's resilient labour force, but CPA Canada notes that more than 80% of newly created revenue has already been spoken for, leaving little to protect long-term fiscal goals.
Government exceeding spending: CTF
The Canadian Taxpayers Federation (CTF) calls on the Mark Carney Liberals to find more savings. “Carney just released his budget six months ago and he’s already on track to spend $6 billion over budget,” said CTF federal director Franco Terrazzano. “The budget update shows the debt continues to spiral out of control because spending continues to spiral out of control.”
According to the update, the government is on track to spend $594.8 billion in the 2026-27 fiscal year, compared to the November budget forecast of $588.3 billion. “Carney needs to reverse course and put down the credit card because taxpayers can’t afford to waste more than $1 billion every week paying interest on the debt,” Terrazzano added.
SEU step forward, but more needed to save jobs
The United Steelworkers (USW) praised the SEU for advancing “buy Canadian” initiatives and the Canada Strong Fund, but said more action is needed to protect jobs from trade-related instability. “The government has taken several steps in the right direction,” said Marty Warren, USW national director. “But the next step must be building the Canadian industrial capacity needed to turn these commitments into good union jobs.”
The USW recommends that when products or materials are not available from Canadian suppliers, targeted investments should expand or rebuild domestic production, especially in steel, aluminum, forestry, and manufacturing.
Increased security spending welcomed
The Centre for Israel and Jewish Affairs (CIJA) welcomed the SEU's increased funding for the Canada Community Security Program (CCSP), which more than doubles its allocation from $60 million to $135 million over five years. “Since the Hamas-led massacre of October 7, threats targeting our community have continued to escalate,” said CIJA CEO Noah Shack. “Canada’s security agencies have warned that a violent attack against the Jewish community is a realistic possibility in the coming months. It’s essential that government programs evolve to meet this challenge head-on.”
