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Ottawa's Parliament Hill, where the Carney government is rolling out Canada's largest fiscal stimulus package since 1980. / Photo: Unsplash. MoneySavings.ca  ·  Economy & Policy Monday, April 13, 2026  ·  Daily Edition Canada at a crossroads: oil shock, frozen rates, and a trade deal on the clock Canada's economy is navigating a uniquely complicated moment in 2026. A Middle East conflict has sent oil prices surging past US$104 a barrel, a once-in-a-generation fiscal stimulus package is being rolled out in Ottawa, and the clock is ticking on a renegotiation of Canada's most important trade agreement. For everyday Canadians, this means uncertainty at the gas pump, a central bank with limited room to cut rates, and a federal government betting big on public spending to kick-start growth. Here is what you need to know about the forces shaping the Canadian economy right now. 1. The Bank of Canada is stuck — and oil is why The Bank of Canada has held it...
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Ontario’s 2026 Budget: Big Spending, Bigger Deficit, and a Push for Stability

                                            The Canadian Press 

Ontario’s 2026 budget arrives at a moment of global economic turbulence, and the Ford government is betting on heavy investment to steady the province. With a projected $13.8‑billion deficit, expanded health‑care funding, and a temporary HST break on new homes, the plan blends affordability measures with long‑term infrastructure ambitions. 

1. Health‑Care Investments Take Centre Stage

The budget commits billions to strengthen primary care, expand clinical training for nurses, and support long‑term care. Highlights include:

  • $3.4 billion for the Primary Care Action Plan
  • Funding for 18 new or expanded primary care teaching clinics
  • Additional investments to train 2,000 registered nurses and 1,000 practical nurses

2. Housing Relief Through HST Removal

To ease affordability pressures, the government is removing the full 13% HST on new homes up to $1.5 million for one year. This measure aims to stimulate construction and support buyers amid high interest rates. 

3. Small Business Tax Cut

Ontario is cutting the small business corporate income tax rate from 3.2% to 2.2%, effective July 1, 2026—one of the most significant reductions in years. The government says this will help businesses weather economic uncertainty. 

4. A Deficit That Nearly Doubles

The province’s deficit is set to jump from earlier projections, reaching $13.8 billion in 2026–27—almost double what was forecast in the 2025 budget. A return to balance is now pushed to 2028–29. 

5. Infrastructure Spending Ramps Up

Ontario plans to continue major capital projects, including highways, transit, and school construction. Total spending rises to $244.2 billion, a 12% increase from last year. 

6. Limited New Affordability Measures

Beyond the HST break and previously announced transit initiatives, the budget offers few new affordability supports. Critics argue it falls short on addressing rising rents, grocery prices, and classroom pressures. 

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