Budget 2026 must make government more affordable for taxpayers
OTTAWA, ON: The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to make government more affordable for taxpayers in the Nov. 5 federal budget. The finance minister announced the budget date in the House of Commons today.
“Budget 2026 needs to make government more affordable and that means cutting taxes, ending the borrowing spree and stopping overspending,” said Franco Terrazzano, CTF Federal Director. “Canadians need tax cuts to afford life and compete, and the government needs to cut spending to stop the debt from ballooning.”
The CTF’s pre-budget submission outlined how the government can become more affordable for taxpayers, including:
1.Cut taxes
The government can improve affordability and economic competitiveness by ending the industrial carbon tax, scrapping costly fuel regulations, making gas tax relief permanent and eliminating the undemocratic alcohol escalator tax.
Income and business taxes are making Canada’s economy less competitive, according to a recent report from the Tax Foundation. Canada ranks a dismal 28th out of 38 industrialized countries on individual taxes. Canada ranks 17th on business taxes. Canada ranks behind the United States on both measures.
2.Reduce borrowing costs
Debt interest charges are the federal government’s “fastest-growing expense,” according to the Parliamentary Budget Officer. Debt interest charges “are projected to more than double from $24.5 billion in 2021‑22 to $59.3 billion” this year, according to the PBO.
Federal debt interest charges will cost each Canadian $1,419 this year.
3.Stop overspending
Carney is on track to spend $13.5 billion over his own budget this year. In Budget 2025, the government said it would spend $588.5 billion this year. The PBO now projects the government will spend $602 billion.
The CTF’s pre-budget submission identifies more than $60 billion in annual savings.
“The federal government wastes money like crazy, but the biggest waste of money is the $1 billion a week going to pay interest on the debt,” Terrazzano said. “Carney needs to put down the credit card, pick up scissors and cut spending in the upcoming budget because taxpayers can’t afford these debt interest charges.”
