Ottawa: Canadian Finance Minister Francois-Philippe Champagne announced on Wednesday that the new Liberal government plans to table an economic update later this year, signaling that a full annual budget is unlikely to be presented in the near term.
When questioned by reporters about the timing of a comprehensive budget, Champagne referred instead to a fall economic statement—a type of mini-budget that addresses the remainder of the fiscal year and provides updates on government spending.
“The first action being taken by the government is to bring in a tax cut,” Champagne told reporters.
“The second thing we will do is … outline the government’s priorities for the next Parliament, and then there will be an economic update in the fall. So the sequence is very clear and very logical.”
Traditionally, the Canadian federal government releases an annual budget in the first quarter of the year, followed by a fiscal update toward the year’s end. This year, however, no budget was presented in the first quarter due to Parliament’s suspension amid federal elections.
Economist Rebekah Young of Scotiabank emphasized the need for greater transparency amid ongoing economic uncertainties, especially given the threat U.S. tariffs pose to Canada’s export-reliant economy.
“One could argue that the more uncertain the time is, the more useful it is to provide that kind of transparency,” she said, noting that provinces have expressed concerns over tariffs and their contingency plans.
Ontario’s provincial government is set to present its budget on Thursday.
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The last federal fiscal update was released in December under former Prime Minister Justin Trudeau’s administration. Following past patterns, it could be nearly a year before another federal budget update becomes available.
Young also pointed out that Prime Minister Mark Carney’s election platform included a detailed government spending plan, adding that many priorities can be advanced through legislation without the need for a formal budget presentation.
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The Liberal Party returned to power in the April 28 election and has indicated it will outline its priorities when Parliament reconvenes on May 27.
Opposition Conservative Party leader Pierre Poilievre criticized the government’s decision to forgo a budget this year.
“Now, in the face of serious economic threats, the Liberals don’t intend to present a budget this year. There is no roadmap forward, no economic vision, and no willingness to lead,” he said in a post on X.
