PBO Assessment of Spring Economic Update: Departmental Spending and New Measures

May 4, 2026

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PBO has prepared a series of notes assessing the Spring Economic Update 2026, tabled on April 28, 2026, in respect of Budget 2025 tabled on November 4, 2025. The objective of these notes is to support Parliamentary scrutiny of public finances. The notes review key elements of the budget cycle through time, notably the economic and fiscal track, fiscal anchors and fiscal sustainability, major government priorities guiding the capital investment strategy, and new spending measures announced since Budget 2025.

Highlights

New measures announced since Budget 2025 total $15.7 billion in 2026-27 and $48.3 billion over five years. Initiatives include: - New strategies such as Team Canada Strong and A Force of Nature. - New entities such as Canada Strong Fund and Canadian Financial Crimes Agency - New tax measures such as Canada Groceries and Essentials Benefit - New departmental spending measures such as Extending Support for Federal Correctional Institutions by Corrections Canada.

The absence of key planning and governance detail for many new measures and “front-loaded” spending profiles across multiple measures raise questions about departmental capacity to implement the measures at the pace proposed in the SEU.

Of note, updates are not provided for the Comprehensive Expenditure Review exercise in terms of cost savings or federal employment reductions for 2026-27, which are relevant for Parliamentary review of Main and Supplementary Estimates.