Federal budget lands Nov. 5; PBO sees deeper deficits

Finance Minister François-Philippe Champagne will table the federal budget on Nov. 5, giving Canadians their first look at any new tax, benefit or spending changes since the spring economic update.

Champagne announced the date in the House of Commons on Tuesday, Oct. 20, according to CP24. It will be the second fall budget under Prime Minister Mark Carney. The tabling time has not been announced.

Champagne said the document will “outline the next steps in our plan to build a stronger, more resilient and more affordable Canada,” The Hub reported.

No measures that would directly affect household finances have been announced. Details on income tax, benefits such as the Canada Child Benefit or Old Age Security, and other programs will not be known until the budget is tabled, and changes generally take effect only once they are legislated or announced by the Canada Revenue Agency. The Department of Finance Canada publishes the budget documents on its website when the minister tables them.

The announcement came the same day the Parliamentary Budget Office (PBO) released an economic and fiscal outlook that points to a tougher financial picture for Ottawa.

Parliamentary Budget Officer Annette Ryan said new spending commitments have used up the gains from higher oil prices, The Hub reported. The PBO now sees deficits about $3 billion a year deeper than it projected in June. It expects the deficit to stay above $63 billion in 2030-31, compared with the $53 billion the government projected in its spring update.

The PBO also said federal borrowing will grow considerably faster than the deficit and that the government will not meet its goal of a declining deficit-to-GDP ratio.

Carney said last month the government was on track to balance its operating budget by 2027-28, a year earlier than first promised. The PBO projects that balance will come in 2028-29, CP24 reported.

The Hub, citing the Globe and Mail, reported the spring update put the current-year deficit at $65.3 billion, followed by $63.1 billion in 2027-28.

Defence spending is expected to be a major pressure. The PBO projects it will rise from about $75 billion a year to $95.7 billion by 2030-31, CP24 reported. Canada has set a goal of reaching five per cent of GDP on defence by 2035.

The budget will land amid the Canada-U.S. trade war and two days after the Nov. 3 U.S. midterm elections. Conservative Leader Pierre Poilievre criticized the government’s spending record on the day of the announcement.

Several money decisions land before the budget. The Bank of Canada makes its next rate announcement on Oct. 28, which we previewed in our rate decision explainer. For payments already scheduled, see our November benefit payment dates guide, and for changes already set, our look at CPP in 2027 and the new rules starting Jan. 1, 2027.

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