The Government’s spring economic update provides a snapshot of Canada’s fiscal health and a small number of new spending initiatives. Beyond the numbers, this part of the federal budget cycle demonstrates what the Government is prioritizing and how it is moving the country in the direction it wants to go.
It will come as no surprise to anyone that the Government’s update tabled on April 28, 2026 focuses on military spending, attracting private investment from around the world and maximising revenue from exploiting Canada’s vast natural resources. However, what is not included in this update speaks volumes on what this Government understands to be the purpose of supercharging our economy through public money. There is very little information on what specific programs are being cut as part of the Government’s public expenditure review process, how projects will be selected through the new public investment funds including the Communities Strong Fund and the new Sovereign Wealth Fund, and what structural interventions are being implemented to reduce inequities beyond market-based solutions. Economic growth that mostly benefits wealthy people and corporations, that comes with harmful impacts on the environment and that feeds deeply entrenched systems of inequality cannot be the measure of Canada’s prosperity. This is not the social contract Canadians are promised by their governments, and we should all be demanding better.
Top five takeaways
- No new funding for pharmacare
This is the clearest indication yet that the Government is not moving ahead with fully implementing the Pharmacare Act. The Spring Economic Statement forecasts a reduction in spending for bilateral health agreements over the next five years. This reduction includes expiring bilateral agreements for homecare, community care and mental health services and long-term care that will not be renewed. In addition to the ending of critical funding for these programs, it means that there will be no new funding for the nine provinces and territories who have not yet signed pharmacare agreements with the federal government. This is unjust and contravenes the principle of universality enshrined in the Canada Health Act and the Pharmacare Act. Access to essential medications including contraceptives and diabetes medication is a key affordability issue for Canadians today, as recognized by the Government in this same Spring Economic Statement. Despite promises to protect pharmacare, the lack of new funding puts the entire pharmacare legislation in jeopardy.
- Renewal of bilateral child-care agreements but ending of the childcare infrastructure fund
We welcome the funding allocated towards renewing bilateral childcare agreements with the provinces and territories. Affordable childcare is essential public infrastructure that supports gender equality, labor market participation and early childhood learning. However, in Canada demand for affordable childcare far outstrips supply with many parents struggling to find childcare spaces. There is much more work to do in creating new spaces to meet the demand and yet the Government has chosen to end the childcare infrastructure fund when it expires it in 2027. This decision puts into question the Government’s commitment to ensuring all Canadians who want to avail of affordable childcare can benefit, again raising questions of universality and fairness for all Canadians.
- Absence of gender-based analysis+
There is no accompanying GBA+ statement analysing the impacts of the new budgetary measures on structurally marginalized groups. GBA+ has been a formal part of Canada’s budgetary process since the 2018 passage of the Canadian Gender Budgeting Act. The two “Gender and Diversity Spotlights” boxes included in the Spring Economic Statement are not sufficient to satisfy the criteria of GBA+ standards and lack the robust data needed to substantiate claims about benefits to different populations.
- No updates on cuts to Global Affairs Canada
From Prime Minister Carney’s speech at Davos proclaiming a new world order to this most recent economic update, the Government has repeatedly emphasized the threats of global instability and the deterioration of a rules based international order. Additionally, the Minister of Foreign Affairs recently announced that Canada would be developing a new foreign policy strategy to better respond to this new global environment. However, Budget 2025 announced significant cuts to Global Affairs Canada, including to the international assistance envelope, but with very few details on what would be cut. Many existing Government initiatives, including the 10- year health and rights commitment for sexual and reproductive health and rights, are in limbo due to the absence of clear direction from the PMO. This update provides neither the clarity many in this sector hoped for nor the resources needed to develop a fulsome foreign policy strategy, including funding for consultations and Canada’s campaign for a seat on the UN Human Rights Council to be voted on in 2027. Prime Minister Carney set Canadians and the world’s expectations very high on how Canada could and should lead in this moment with values of human rights, democracy, gender equality, peace and international solidarity. There is no time to wait, we need clarity and courage from our leaders and the resources to follow through.
- Much hyped AI strategy with no accountability for tech companies
AI has been heralded as the saver of money, the increaser of productivity and the engine of innovation in the Government’s new AI strategy. However, the absence of regulation and accountability for tech companies is a glaring omission from the Government’s plans. As the world embarks in a new technological leap, we cannot let massive tech companies led by billionaires determine the guardrails for ensuring safety from technology facilitated gender based violence and the proliferation of mis and disinformation, that is particularly limiting access to accurate sexual and reproductive health information as well as the ways in which these new tools can be used to undermine rights to privacy, freedom of expression and access to information.
The Spring Economic Statement reveals a story where military spending and resource extraction take center stage, and the pillars of reproductive justice and social equality are left to crumble.
By retreating from childcare infrastructure, stalling on universal pharmacare, and neglecting robust gender-based analysis, the government is not just balancing a budget; it is shifting the burden of economic precarity onto those already stretched to their limits.
As we look toward the horizon of 2027, the direction being charted feels like a departure from the values of fairness, universality and human rights that Canadians hold dear. We must invest in the foundations that allow people to live stable, healthy and dignified lives. It is time to close the gap and demand a budget that truly reflects the country we were promised.