Government prepares a spring update that could have big implications for the housing and mortgage outlook
The federal government will table its spring economic statement on April 28 as Canada faces global economic turbulence, rising energy costs, and increasing fiscal pressures, finance minister François-Philippe Champagne said in the House of Commons.
The announcement comes one day after the Liberal Party secured a majority government, a result that will allow the governing party to advance legislation more quickly through the House of Commons.
The update is expected to outline Canada’s fiscal position at a time when the federal deficit continues to trend higher. According to recent data, the deficit reached $31.21 billion in the first 10 months of the 2025–26 fiscal year, up from $26.85 billion a year earlier, driven by higher program spending and persistent debt-servicing costs.
The broader fiscal backdrop is also being shaped by rising global borrowing costs. Across G7 economies, government bond yields have increased in recent years following the post-pandemic inflation cycle and tighter monetary policy, adding pressure to public finances as older low-cost debt is refinanced at higher rates.
Structural spending demands, including ageing populations, defence commitments, and climate-related expenditures, are also contributing to higher long-term fiscal needs, reinforcing upward pressure on interest payments across advanced economies.
The update, which will outline the government’s fiscal position and new economic measures, is expected to be closely watched as Canadians contend with rising energy prices linked to instability in global oil markets and disruptions in supply routes, including the Strait of Hormuz, CBC News reported.
Earlier, prime minister Mark Carney announced a temporary removal of the federal excise tax on gas and diesel, signalling additional cost-of-living measures may be included in the upcoming fiscal package.
“This is going to be a plan that is going to help families, it’s going to help our industry, it’s going to help our nation,” Champagne said in the House.
The fiscal framework continues a shift in Canada’s budget process. Last year, the government ended the long-standing tradition of presenting a spring budget and moved the main budget to the fall, inspired by the United Kingdom. Fiscal updates have since functioned as “mini budgets,” alternating between spring and fall statements.
