Ahead of its second federal budget on November 5, the Carney government says it will balance the operating budget while expanding capital and infrastructure spending. Under US tariff pressure, priorities are investment attraction, energy and grid, AI adoption and higher defence spending.
Government · leader
Prime Minister Mark Carney (head of government); head of state King Charles III
Key national agenda
- Respond to US tariffs and diversify trade and investment
- Restrain operating spending while expanding capital (infrastructure) spending
- National AI strategy and wider SME AI adoption
- Home energy retrofits and National Electricity Strategy (double grid by 2050)
- Major defence spending increase
- Greater Indigenous economic participation
Government programmes
Federal Budget 2026
Finance Minister Champagne to table it on Nov 5; PBO projects a C$63.3bn deficit for 2026-27
One million home energy retrofitsC$2 billion
National Heat Pump Rebate (up to 820,000 households, up to $10,000) plus 280,000 apartment units via CMHC and CIB
National Council on AI and national AI strategy
Council launched Oct 2, 2026 to drive AI adoption
National Electricity Strategy
Launched May 2026; aims to double grid capacity by 2050
Defence spending increase
PBO estimates rise from about C$75bn to C$95.7bn by 2030-31
Business opportunities
AI workflow automation package and training for SMEs
The government has made AI adoption a national priority with a new National Council on AI.
Manufacturing and service SMEs in Ontario/Quebec, regional development agencies
Heat pump rebate application/verification automation and contractor management SaaS
A 24-hour approval promise across up to 820,000 rebates creates high-volume processing needs.
Natural Resources Canada, provincial efficiency agencies, contractors
Asian export diversification consulting for tariff-hit manufacturers
After US trade talks collapsed in August, support for steel and auto sectors is expanding.
Ontario steel and auto parts firms, provincial economic development ministry
PMO and market research for Korea-Canada defence/space/hydrogen ventures
A string of MOUs by Hanwha and others creates demand for supplier SMEs to follow.
Korean partner SMEs, Canadian partners (Telesat, MDA, etc.)
Korean support schemes
- Korea-Canada Advanced Industry Cooperation Business Roundtable · KOTRA Toronto — Held in Toronto in late May 2026, matching firms in defence, space and hydrogen and producing three MOUs.
- Korea-Canada Industrial Cooperation Forum · MOTIE / KOTRA — Held in Toronto in January 2026 with six MOUs on future mobility, AI and critical minerals.
Official notices
- 2026-10-26 Meeting with Indigenous leaders and premiers convened; First Nations sovereign wealth fund discussed
- 2026-10-21 Federal-Ontario action plan for tariff-hit steel and auto workers
- 2026-10-08 C$2bn for one million home retrofits
- 2026-10-02 National Council on AI launched
Disaster · conflict · epidemic
Stable 2026-10-30
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