Spring Economic Update already cashed-in, leaving little room for growth agenda

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OTTAWA, Ontario, April 28, 2026 (GLOBE NEWSWIRE) — The Spring Economic Update paints a rosier-than-expected financial picture, but much of that upside has already been committed—leaving limited room for new investment or tax initiatives to support the government’s productivity and growth agenda.

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The deficit is now projected at $66.9 billion—$11.5 billion lower than forecasted in Budget 2025—and is expected to decline to $53.2 billion, consistent with the government’s fiscal anchor.

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The improved fiscal forecast is largely driven by a resilient labour force and higher oil prices, leading to increased government revenue. However, most of this additional revenue has already been spent on targeted programs such as a top up to a GST credit for low-income earners.

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“The economic changes are lopsided towards improved government revenues rather than any real change in government spending,” says CPA Canada’s chief economist David-Alexandre Brassard.

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“With revenues revised upward, the government didn’t have to deliver the substantial savings in operating expenses it had outlined—and in fact fell short by about $30 billion in projected savings of operating expenses.”

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Brassard notes that 80 per cent of the newly created revenues have been spent rather than banking the money to improve the long-term fiscal picture.

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Debt-levels have decreased on the back of revised GDP numbers, but we still see an increasing debt-to-GDP ratio up until 2029-2030, he adds.

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At the same time, the government’s update is inscribed in continuity and lacks major spending initiatives or bold tax measures that could tip the scale toward stronger growth.

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“The few tax priorities contained in the update will not add undue stress to Canada’s already complex tax regime, leaving us at status quo,” says Ryan Minor, CPA Canada’s director of taxation.

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“Unfortunately, the changes outlined will not move the needle toward improving Canada’s tax system in the way needed to support long-term productivity and growth.”

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CPA Canada is calling for bolder thinking in Budget 2026 to support the government’s vision for productivity and growth in an uncertain global economy.

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Media Contact:

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Sunny Freeman
Director, Strategic Communications and Marketing
Chartered Professional Accountants of Canada
[email protected]

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