Canada's Treasury released the 2026 budget on the 5th in the capital Ottawa. The budget, which has the theme of “seizing one's own destiny,” introduced a series of measures, including drastically cutting the tax burden and starting the country's “investment supercycle” to enhance the country's economic autonomy and international competitiveness, and reduce dependence on the US. The budget announced that the Canada-US relationship has not returned to the past, and the Canadian economy cannot continue to be attached to the US market. Although it will take time to reduce dependence on the US, transformation has already begun. According to the budget, in order to attract global investment and boost local productivity, the Canadian government plans to introduce major tax policy reforms such as the “Productivity Excess Deduction” to drastically reduce Canada's marginal effective tax rate on new business investment from 13% to 6.4%, driving 400 billion Canadian dollars in capital investment over the next 6 years. According to the budget, the Canadian government plans to invest 50 billion Canadian dollars to double the capacity of the power grid by 2050; at the same time, increase investment in nuclear energy and key minerals to strengthen its position as a global energy power. According to the budget, the federal government expects the fiscal deficit for the 2026-2027 fiscal year to reach 62.3 billion Canadian dollars, and the annual deficit for the next 4 years will exceed 50 billion Canadian dollars. The budget will push Canada to implement two fiscal goals, namely to achieve daily operating balance in the 2027-2028 fiscal year, one year ahead of schedule, while continuing to decline in the deficit as a share of GDP.

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