Budget 2026: Spending review
Budget 2026 builds on the Comprehensive Expenditure Review from Budget 2025, restating a $13 billion annual savings target by 2028-29 and a 20% cut in consulting spend. Beyond staffing, it names Canada Post modernisation and consolidation of federal financing Crown corporations as measures with savings or efficiency aims, and notes that some savings remain to be identified at a future date.
Review-wide savings targets and what remains unidentified
Restates the $13 billion annual target and consulting cut, and discloses that savings remain to be identified in later years.
Sources
Budget 2025’s commitment to saving $13 billion annually by 2028-29 through the Comprehensive Expenditure Review, with total savings and revenues of $60 billion over five years when combined with other measures.
Budget 2026 - Masters of our Destiny · PDF p. 306Full cited page
Budget 2025’s commitment to saving $13 billion annually by 2028-29 through the Comprehensive Expenditure Review, with total savings and revenues of $60 billion over five years when combined with other measures.
Reduced spending on external management and other consulting services by 20% over the next three years, achieving annual savings of $0.9 billion by 2028-29.
Budget 2026 - Masters of our Destiny · PDF p. 306Full cited page
Reduced spending on external management and other consulting services by 20% over the next three years, achieving annual savings of $0.9 billion by 2028-29.
the balance of savings to be identified at a future date is $0.5 billion in 2027-28, and an average of $1.8 billion annually from 2028-29 to 2030-31.
Budget 2026 - Masters of our Destiny · PDF p. 330Full cited page
the balance of savings to be identified at a future date is $0.5 billion in 2027-28, and an average of $1.8 billion annually from 2028-29 to 2030-31.
These expenses are forecasted to increase from $150.0 billion in 2026-27 to $159.5 billion by 2030-31, with growth muted by the phase-in of savings under the Comprehensive Expenditure
Budget 2026 - Masters of our Destiny · PDF p. 352Full cited page
These expenses are forecasted to increase from $150.0 billion in 2026-27 to $159.5 billion by 2030-31, with growth muted by the phase-in of savings under the Comprehensive Expenditure
Named programs and institutions
Canada Post conversion and stamp rates, the single development bank proposal, and ERI-linked operating budget reductions.
Sources
Operating budget reductions resulting from this measure are expected to total $400 million over four years, starting in 2027-28, and $100 million ongoing, and reductions will be reflected in the 2027-28 Main Estimates.
Budget 2026 - Masters of our Destiny · PDF p. 321Full cited page
Operating budget reductions resulting from this measure are expected to total $400 million over four years, starting in 2027-28, and $100 million ongoing, and reductions will be reflected in the 2027-28 Main Estimates.
Provide additional support to Canada Post’s operations including $1.4 billion over two years.
Budget 2026 - Masters of our Destiny · PDF p. 322Full cited page
Provide additional support to Canada Post’s operations including $1.4 billion over two years.
Provide $1.2 billion over seven years to support the conversion of urban door-to-door mail delivery to community mailboxes. First announced in September 2025, the transition will streamline operations while maintaining high service standards and is expected to generate approximately $2.2 billion in savings over 10 years, helping put Canada Post back on the path toward financial sustainability.
Budget 2026 - Masters of our Destiny · PDF p. 323Full cited page
Provide $1.2 billion over seven years to support the conversion of urban door-to-door mail delivery to community mailboxes. First announced in September 2025, the transition will streamline operations while maintaining high service standards and is expected to generate approximately $2.2 billion in savings over 10 years, helping put Canada Post back on the path toward financial sustainability.
raising stamp rates, beginning in 2027, to $2.00 for single stamps and 7% per year continuously. This measure will have a relatively limited impact on consumers and small businesses, with an estimate of only approximately $6 per year for consumers and $9 per year for small businesses.
Budget 2026 - Masters of our Destiny · PDF p. 323Full cited page
raising stamp rates, beginning in 2027, to $2.00 for single stamps and 7% per year continuously. This measure will have a relatively limited impact on consumers and small businesses, with an estimate of only approximately $6 per year for consumers and $9 per year for small businesses.
Launch a transition process to create a single federal development bank by bringing together the Business Development Bank of Canada and Export Development Canada.
Budget 2026 - Masters of our Destiny · PDF p. 324Full cited page
Launch a transition process to create a single federal development bank by bringing together the Business Development Bank of Canada and Export Development Canada.
Existing products and services will be fully maintained throughout the transition.
Budget 2026 - Masters of our Destiny · PDF p. 324Full cited page
Existing products and services will be fully maintained throughout the transition.
Analysis of cited budget provisions. Proposals and forecasts are distinguished from implemented measures.
