Canada Budget Tool
Can you balance the federal budget? This tool starts from Budget 2026, tabled on November 5, 2026, which projects $540.3 billion in revenue and $602.6 billion in expenses for fiscal year 2026–27. That leaves a deficit of $62.3 billion. Move the sliders to raise or cut taxes and spending, and watch the deficit and the debt change.
This is Budget 2026 as tabled: a deficit of $62.3 billion. Move a slider to change it.
Revenue
Where the money comes from
Raises or lowers everyone's federal income tax bill by the same percentage.
Raises or lowers what corporations pay by the same percentage.
The federal sales tax. It is 5% today, and each point is worth about $10.3 billion in this tool.
Paid by workers and employers. By law, premiums are set to cover EI costs over time.
Held fixed: $93.1B in other revenue, such as customs duties, other excise taxes, non-resident tax and Crown corporation profits.
Spending
Where the money goes
Monthly payments to seniors, including the Guaranteed Income Supplement. The largest federal program.
Running departments and agencies, the public service and National Defence. The budget calls this line other direct program expenses.
Federal payments to people, organizations and businesses outside the major transfers. The budget calls this line other transfer payments.
Money sent to provinces and territories for health care.
Payments to people who lose work, plus parental and sickness benefits.
The Canada Social Transfer, child care agreements, territorial financing and smaller arrangements.
Tax-free monthly payments to families with children.
Payments to provinces with a below-average ability to raise revenue.
Held fixed: $60.2B in interest on the federal debt, which the government cannot choose to skip.
How the tool works
Every figure comes from Budget 2026's own projection for 2026–27. A percentage slider scales one line of the budget: cutting a $100 billion program by 10% saves $10 billion. The GST slider sets the rate, and revenue moves in proportion: the budget expects $51.5 billion at 5%, so each point is worth about $10.3 billion.
The balance is revenue minus expenses. Federal debt at the end of the year moves dollar for dollar with the balance, starting from the budget's $1.37 trillion. Shares of the economy use a GDP of about $3.42 trillion, which is the figure implied by the budget's debt in dollars and its debt-to-GDP ratio of 39.9%.
What it leaves out
The tool is deliberately simple, and it is not a forecast. Four limits matter most.
- No reactions. People and businesses change what they do when taxes change, and spending cuts or increases affect the economy. None of that is modelled, so large changes are less reliable than small ones.
- Broad lines. The sliders use the budget's own categories. A 10% cut to government operations says nothing about which services or jobs would go.
- One year. Many changes take years to phase in, and some programs are set by law or by agreements with the provinces.
- Interest is fixed. The $60.2 billion in debt charges does not change with your deficit. In reality, borrowing less would lower interest costs a little in the first year and more over time.
Employment Insurance is a special case. By law, premiums are set so the program covers its own costs over time, so moving premiums and benefits in opposite directions would not last.
Sources
Figures are from Budget 2026, Annex 1 (Department of Finance Canada): the summary statement of transactions, the revenue outlook and the expense outlook. The Library of Parliament's The 2026 Federal Budget at a Glance sets out the same figures line by line. Some lines are grouped here: "other transfers to provinces" combines the Canada Social Transfer, child care agreements, Territorial Formula Financing, health agreements and smaller arrangements.
Frequently asked questions
How big is Canada's federal deficit?
Budget 2026, tabled on November 5, 2026, projects a deficit of $62.3 billion for fiscal year 2026–27: $540.3 billion in revenue against $602.6 billion in expenses. That is about 1.8% of the economy.
How much is the federal debt?
Budget 2026 projects federal debt of $1.37 trillion at the end of 2026–27, or 39.9% of GDP. Interest on that debt is $60.2 billion for the year.
How much would raising the GST bring in?
In this tool, each point of GST is worth about $10.3 billion a year. That is the budget's $51.5 billion in GST revenue divided by the current 5% rate, and it assumes people keep spending the same amount.
What does the federal government spend the most on?
The largest lines in Budget 2026 are government operations and defence ($150.0 billion), grants and contributions ($122.4 billion) and Old Age Security ($89.4 billion). Interest on the debt is $60.2 billion.
Is this a forecast of what would really happen?
No. The tool does simple arithmetic on the budget's own figures. It does not model how people, businesses or the economy would react to a tax or spending change, so real results would differ.
Can I share my budget?
Yes. Your choices are stored in the page link. Press "Copy link to this budget" and anyone who opens the link sees the same budget.