Public Policy Forum Statement on Budget 2026

Canada is in the midst of an unprecedented transformation as it tries to shift reliance away from its once reliable partner to the South and boost its sovereignty and economic resilience.

This year’s federal budget — aptly titled “Masters of our destiny” — builds on efforts over the past year to meet the moment and make Canada a more attractive place for investment, business and talent.

It outlines steps to help businesses and entrepreneurs, improve affordability and, critically, continue pushing major projects to support economic sovereignty and security, competitiveness and trade diversification.

It is a strong blueprint for a flourishing Canada and puts some important building blocks together that will be needed to get the country’s economic house in order.

But as we have urged in our recent Build Big Things reports, execution is everything. Blueprints need to be followed by playbooks.

“Canada has an opportunity to connect investment in critical infrastructure with investment in people,” says PPF President and CEO Inez Jabalpurwala. “Building a flourishing Canada means advancing economic growth, social well-being, and sovereignty and security together. Success will depend on turning these commitments into lasting benefits for Canadians.”

As PPF has outlined in its Build Big Things series of playbooks, economic growth requires new investment in energy, mining and infrastructure projects. Executing on that means getting projects to final investment decision (FID) by mobilizing public and private capital, accelerating regulatory decisions and creating opportunities for meaningful Indigenous economic participation.

The budget moves in the right direction, outlining in surprising detail some of the major projects in the pipeline, and measures to promote them. Importantly, it recognizes that building major projects is not just about economic growth, it is also about generating the revenues needed to strengthen public finances and reduce Canada’s debt burden.

Examples include new operating details for the previously announced $25-billion Canada Strong Fund, the proposed one-year federal review and decision approach, and continued use of Indigenous loan guarantees to enable equity ownership in projects.

The real measure of success will be the number of projects reaching FID, the amount of private capital actually deployed and benefits delivered to Canadians.

“This plan comes with challenges, including rising debt charges and significant execution risks. The test is whether investment rises, capital moves, projects advance, and those investments ultimately translate into jobs, productivity and stronger economic growth,” says Jay Khosla, PPF’s Executive Vice-President, Strategy and Policy.

Realizing Canada’s ambitions depends on people having the health, skills and opportunities to contribute — the focus of PPF’s Build Big Talent and brain capital work. Investments in workforce readiness, sectoral workforce supports and skill building all align with this need. The challenge will be aligning employer benefits from this budget with benefits for workers.

“Canada needs a talent strategy equal to its ambitions,” says Jabalpurwala. “Investing in brain capital (both brain health and brain skills), strengthens our capacity to learn, adapt, innovate and build economic and social resilience. It helps more Canadians contribute to, and benefit from, a flourishing Canada.”

The third building block is social cohesion: the trust, belonging and shared opportunity that enable Canadians to move forward together. Economic growth needs to deliver benefits people can see in their lives and in their communities.

A strong Canadian culture and democracy, supported by reliable local journalism, help sustain these connections. Our Local News project has recommended measures to make funding local journalism less onerous and to help small outlets grow. These local news sources are essential pieces of healthy communities, but they have been disappearing at an alarming rate. The continuation of funding for the Local Journalism Initiative is welcome, but it is just one part of a long term fix.

One of the missing pieces in this budget blueprint is a robust plan for growing Canada’s population, including a coordinated approach to immigration, talent development and regional workforce needs.

Boosting immigration may not be popular in all corners of the country, but as PPF’s recent Atlantic Canada Momentum Index showed, population growth has been an economic engine in some regions. Recent immigration cuts have caused real economic damage, slowing momentum across Atlantic Canada, which needs to fill 441,000 jobs in the coming decade.

The budget includes measures to move temporary residents to permanent resident status and plans to reform the Temporary Foreign Worker Program to align with regional needs. But without more immigration, major projects and massive investments in defence spending won’t have the talent they need to deliver promised economic growth.

The opportunity now is to connect these building blocks: investment that strengthens the economy, talent that enables all Canadians to contribute, and shared prosperity that builds trust and belonging.

Delivery will determine whether this budget’s ambitions translate into a more resilient country and better lives for Canadians.

Canada is not yet flourishing. But it can and it will. PPF remains focused on making actionable policy that drives economic growth and social cohesion for all Canadians.

Learn more about our policy work and how to become a member.