Finance minister to table economic update as deficit outlook improves

Canada’s Finance Minister François-Philippe Champagne is set to present a federal economic update today, outlining the government’s plan to strengthen the country’s position among G7 economies and signal potential new measures aimed at boosting investment and job creation.

According to statements made ahead of the release, the update is expected to function as a mini-budget, with a focus on long-term economic stability and growth. The government has indicated it will provide details on its fiscal outlook alongside policy steps intended to support economic expansion.

A key focus will be the federal deficit. In the November budget, Ottawa projected a record shortfall of $78.3 billion. However, according to federal financial data released last week, the deficit for the first 11 months of the 2025–26 fiscal year, from April to February, stands at $25.5 billion.

March typically records a significant increase in spending, which can widen the annual deficit. Even so, some analysts expect the final year-end figure to come in lower than the earlier projection, based on current trends.

The economic update is expected to clarify how the federal government plans to manage spending while advancing its broader economic agenda.