Report

The Government’s Expenditure Plan and the Main Estimates for 2026-27

May 7, 2026

This report examines the federal government’s Expenditure Plan and Main Estimates for 2026-27, which supports the appropriation bill that seeks Parliament’s approval of $230.4 billion in budgetary authorities.

Highlights

The Main Estimates are enacted through an appropriation bill for the 2026-27 fiscal year, which require Parliament’s approval for $230.4 billion. Parliament has already provided legislative authority for most of the planned spending ($272.4 billion) for the 2026-27 fiscal year through other pieces of legislation.
The Canada Health Transfer is set to increase by $2.7 billion (5 per cent) to $57.4 billion in 2026-27.
Federal spending on Elderly Benefits is set to increase by $5.7 billion (6.9 per cent) to a total of $88.8 billion in 2026-27. However, after the tabling of the Main Estimates, the government released its Spring Economic Update 2026, which now forecasts Elderly Benefits to cost 89.3 billion for 2026-27 (an increase of $6.2 billion or 7.5 per cent).
The 2026-27 Main Estimates outline $53.7 billion in forecasted statutory authorities related to servicing public debt, which represents a $4.7 billion increase (9.5 per cent) from the 2025-26 Estimates to date for the preceding year.
These Main Estimates include $14.7 billion in funding for Budget 2025 measures.
Initiatives related to Rebuilding, Rearming, and Reinvesting in the Canadian Armed Forces represent 71.1 per cent of Budget 2025 proposed spending in these Estimates, including $9 billion to the Department of National Defence (DND) and $675.3 million to the Communications Security Establishment Canada (CES).