Canada’s parliamentary budget officer reports that new federal measures, especially a C$36 billion “productivity mega deduction,” have more than offset a C$11.4 billion revenue boost from higher energy prices over the next three years. The fiscal outlook released Tuesday shows federal fiscal room expanding by C$37.4 billion ($26.6 billion) from 2026‑27 to 2030‑31, yet the deficit‑to‑GDP ratio is expected to rise to 2.0 % in 2027‑28 before falling to 1.7 % in 2030‑31, missing a key target of annual declines. Prime Minister Mark Carney promoted the tax write‑off at the nation’s first investment summit, aiming to attract business investment, while economists warn the deduction may not replace lost tax revenue in the near term but could lift real GDP long‑term if U.S. trade normalizes.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing