Canada’s Finance Minister, The Honourable François-Philippe Champagne, will deliver the 2026 Federal Budget in the House of Commons on November 5, 2026.
A defining moment for Canada
Budget 2026 comes at a pivotal moment as Canada navigates economic uncertainty, geopolitical shifts and evolving global investment dynamics. Canadians and businesses will be looking for signs that government commitments are translating into action, balancing growth ambitions with fiscal discipline. Canada-U.S. trade uncertainty, economic resilience and competitiveness are expected to shape the government’s long-term economic direction and Budget 2026 priorities.
Finance Minister, The Honourable Francois-Philippe Champagne described Budget 2026 with a focus on “attracting investment, advancing major projects, and creating good jobs across the country”. Nationwide consultations took place over eight weeks this summer to discuss issues such as the impact of U.S. tariffs and trade uncertainty, strengthening Canada's economic sovereignty and competitiveness through a more competitive tax system, boosting investment and productivity, addressing housing and workforce challenges, and advancing innovation and digital transformation through artificial intelligence (AI).
Together, these priorities will help shape the policy, tax and investment measures that businesses and Canadians will be watching for in Budget 2026.
Tax policy and investment: Creating a more competitive business environment
Business leaders will be watching to see whether Budget 2026 advances meaningful tax reform to improve Canada’s investment climate and competitiveness. The new Productivity Mega Deduction has been a welcome announcement and is expected to have an impact on investment decision-making, encouraging more businesses to make productivity-enhancing investments. Still to be determined is whether the budget goes further. This could include additional tax and financing measures supporting automation, artificial intelligence, advanced manufacturing and digital infrastructure, alongside efforts to reduce complexity, and ease compliance burdens.
As federal budgets can introduce tax measures that take effect immediately, businesses and investors should review any tax-sensitive transactions ahead of budget day to help mitigate the risk of adverse tax changes.
87% of business leaders want the federal government to conduct a comprehensive review of Canada's tax system
85% of business leaders feel Canada’s tax system should be simplified to reduce complexity
51% of business leaders say the Productivity Mega Deduction will encourage investment in new machinery, equipment, technology and capital projects
For a more detailed overview of the tax measures and policy considerations that may be included in Budget 2026, read KPMG’s TaxNewsFlash.
Productivity and innovation: Building Canada’s economic potential
For business leaders, the key question is whether Budget 2026 will make Canada a more competitive place to invest. Details on the Canada Strong Fund, ‘Buy Canadian’ procurement, regulatory modernization and the “AI for All” strategy will be important to watch. Ultimately, faster execution of the government’s economic agenda, competitive costs and the right conditions for growth and risk-taking will drive investment decisions.
89% of federal, provincial and municipal public servants say Canada should develop and deploy a comprehensive AI governance policy for both the public and private sectors.
Trade, economic resilience and strategic industries: Building resilient supply chains
Business leaders will also be watching how Budget 2026 responds to a more uncertain trade environment. With the U.S. remaining Canada’s dominant trading partner, priorities include managing Canada-U.S. trade relations while advancing diversification, building more resilient supply chains and supporting strategic sectors such as defence, critical minerals, advanced manufacturing and energy. Policy choices in these areas could help businesses navigate disruption and position Canada for a changing global economy.
84% of business leaders believe Canada is right to pursue a special partnership with the European Union and other stable trade partners
72% of business leaders think Canada should hold out for a better trade deal, even if doing so creates some economic pain
77% of business leaders say Canada was right to suspend trade talks with the U.S. and impose counter-tariffs
Infrastructure, energy and major projects: Turning ambition into action
Budget 2026 is expected to put a greater focus on accelerating nationally significant projects and turning available capital into long-term economic development. Areas to watch include major project approvals and infrastructure across energy, trade corridors, ports, rail, electricity and critical minerals, as well as efforts to better align financing, procurement and industrial policy. Expanding public-private financing models could also help mobilize institutional and private capital. A key challenge is to translate that capital into investable projects that can be delivered at scale and strengthen Canada’s economic resilience.
Housing, affordability and workforce: Meeting the needs of a growing Canada
Budget 2026 will need to address the interconnected pressures of housing, affordability and workforce capacity and their broader implications for Canadian businesses. Canadians and businesses will be watching for progress on scaling affordable housing through Build Canada Homes, measures to address labour market challenges and initiatives that strengthen skills development and workforce readiness. This includes building the skills and organizational capabilities needed to support responsible AI adoption at scale. How effectively these measures address talent availability, operating costs, and household pressures will have important implications for businesses, employees and consumer demand.
How KPMG can help
KPMG’s multidisciplinary team of professionals brings together a broad range of perspectives and experience to help you and your business navigate changes introduced in the 2026 federal budget. We’ll provide timely insights on the measures announced and what they could mean for Canadians and businesses. Check back as details emerge.
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About KPMG’s 2026 Federal Budget Survey
KPMG Canada surveyed 346 Canadian business owners and decision-makers from September 22 to October 2, 2026. All respondents are members of the Angus Reid Forum. Of those surveyed, 21 per cent lead companies with annual gross revenue of $1 billion or more; 34 per cent, $500 million to under $1 billion; 10 per cent, $300 million to under $500 million; 16 per cent, $100 million to under $300 million; and 19 per cent, $10 million to under $100 million.
Among the companies represented, 57 per cent are privately held, 24 per cent are owned by private equity, 17 per cent are publicly traded, and 2 per cent are subsidiaries of foreign-owned companies. Forty-eight per cent of companies were headquartered in Ontario; 16 per cent in British Columbia; 15 per cent in Quebec; 11 per cent in Alberta; 6 per cent in Saskatchewan and Manitoba and 3 per cent in Atlantic Canada.