Briefing binder created for the Deputy Minister of Finance on the occasion of his appearance at the Standing Committee on Public Accounts on February 9, 2026 on the 2024 and 2025 Public Accounts of Canada

Canada Emergency Business Account (CEBA)

Auditor General Report

Key Messages

• Between 2020 and 2021, the Canada Emergency Business Account (CEBA) program provided $49 billion to approximately 900,000 businesses during the COVID pandemic.
• Over 80% of loan holders fully repaid their loan and received partial loan forgiveness by March 2024.
• As of December 2025, $7.4 billion in loans remain outstanding. Finance Canada continues to work with Export Development Canada (EDC) and the Canada Revenue Agency (CRA) on recovering outstanding loans in a cost-effective manner.
• On December 2, 2024, Auditor General Karen Hogan tabled a report in the House of Commons which concluded that while the CEBA program worked to quickly provide Canadian small businesses with loans during the COVID-19 pandemic, overall, the program was not managed with due regard for value for money.
• Finance Canada, in working with EDC and the CRA, has made and continues to make good progress in implementing the OAG's recommendations.

Details & Supplementary Information

In March 2020, the Government of Canada introduced the CEBA program to help eligible small and medium-sized businesses cover operating costs during the COVID-19 pandemic. The CEBA program provided interest-free loans of up to $60,000 that would qualify for partial loan forgiveness of up to one-third of the loan value if repaid by a set deadline. The program accepted loan applications between April 2020 and June 2021 and provided more than $49 billion in funding to nearly 900,000 businesses. The deadline for repayment to qualify for partial loan forgiveness was extended to January 2024 and approximately 80% of CEBA loans were repaid at this time.

As of December 2025, of the $49 billion CEBA portfolio, $41.1 billion has been forgiven or repaid, $0.58 billion has been written off, and $7.4 billion remains outstanding. This is down from December 2024, when there was $7.9 billion outstanding.

Following from the OAG performance audit, four recommendations concern the Department of Finance Canada. Finance Canada agrees with all but one of the recommendations of the audit report:

• Recommendation 24: EDC should work with Finance Canada to consider appropriate actions, including legal implications and options to recoup loan forgiveness from ineligible small businesses. EDC should then identify the full population of ineligible recipients in the non-deferrable expense stream. 
  • Departmental Response: Agreed. The Department agreed to work with EDC to consider appropriate follow-up actions, including examining legal implications and options to recoup loan forgiveness from ineligible recipients in the non-deferrable expense stream. This work has been completed.
• Recommendation 43: Finance Canada should provide analysis to support the development of a complete plan, including spending limits, for all actions required to collect on defaulted loans through to the end of the CEBA program
  • Departmental Response: Agreed. The Department of Finance Canada has already provided analysis on the remaining relevant aspects of the CEBA program. The Department is working with EDC and CRA to develop a complete plan, including spending limits, towards closure of the program.
• Recommendation 44: Finance Canada and GAC should clarify who has the lead for key program activities such as risk mitigation and overall program outcomes.
  • Departmental Response: Agreed. The Department worked with Global Affairs Canada, EDC, and CRA to develop a program charter identifying the lead for key program activities. The program charter was signed by the four deputy heads in April 2025.
• Recommendation 48: In its role as policy lead, the Department of Finance Canada should address the accountability and oversight gaps for the CEBA program, including oversight of administrative expenditures on the CEBA program that are paid through the Canada Account.
  • Departmental Response: Disagreed. Finance Canada has no legislative authorities to provide oversight of administrative expenditures on the CEBA program. As the administration of the CEBA program was delegated to EDC, the Board of Directors of EDC is responsible for providing oversight of the administrative expenses of the CEBA program.

Other recommendations targeting EDC and/or CRA include: 

• EDC should strengthen contract management processes and monitoring. 
• EDC should develop a detailed plan to transition data management to the government. 
• EDC and the CRA should reassess their individual collection plans and include missing elements, such as performance metrics. CRA should coordinate with EDC to obtain the information needed to set its own performance metrics. 
• EDC should enforce the existing terms and conditions of its agreements with financial institutions to ensure data collection is timely and can inform CRA planning.

Commissioner of the Environment and Sustainable Development
Audit Report: Poverty Reduction

Key Messages

• The Department supports the poverty reduction goal of the Federal Sustainable Development Strategy and the target to reduce the poverty rate by 50% from its 2015 level by 2030.
• As set out in Finance Canada's 2023 to 2027 Departmental Sustainable Development Strategy, the Department is committed to sustainable development that aligns with its plan to keep the economy growing in a way that benefits more people today, and in the future, contributing to a better quality of life for all Canadians.
• The Department is responsible for the policy advice and legislation underpinning income-tested benefits that are delivered by the Canada Revenue Agency through the tax system, like the Canada Child Benefit (benefitting 3.5 million families) and the Canada Workers Benefit (benefitting 3 million recipients and their families).
• The Department agrees to continue to follow guidelines prepared by Environment and Climate Change Canada and to strive to ensure that departmental actions include relevant performance indicators that can be linked to measurable and achievable targets according to strategy timeframes.

Details & Supplementary Information

• The 2022 to 2026 Federal Sustainable Development Strategy is aligned to the United Nations Sustainable Development Goals. Goal 1 is to end poverty in all its forms and is supported by measurable targets and actions that each department reports in their respective Departmental Sustainable Development Strategies.
• On November 6, 2025, the Commissioner of the Environment and Sustainable Development tabled an audit report examining actions by five federal organizations who contributed to the poverty reduction target of the Federal Sustainable Development Strategy: Employment and Social Development Canada, the Canada Revenue Agency, the Department of Finance Canada, Statistics Canada, and Indigenous Services Canada.
• The audit found that, from 2015 to 2020, Canada's poverty rate decreased from 14.5% to 6.4%; however, since 2020, the poverty rate has been trending upwards, from 6.4% to 10.2% in 2023. The report notes that the government will need to ensure that its poverty reduction efforts contribute to the overall downward trend since 2015 if it is to meet its commitment to reduce poverty by 50% from its 2015 level by 2030 and mitigate post-2020 increases in the poverty rate. The news release upon tabling of the report in Parliament spoke of a need to reverse an upward trend in poverty since 2020.
• It is important to note, however, that the 2020 rate of 6.4% was achieved due to unprecedented levels of support provided by COVID-19 emergency benefits, while the federal government posted a budget deficit of $327.7 billion in 2020-21. Further, the 4.3 percentage point reduction from 14.5% in 2015 to 10.2% in 2023 implies that about 60% of the distance towards the 2030 target of 7.25% has been achieved.
• The Department of Finance's implementation strategy as it relates to Goal 1 in the 2023-27 Departmental Sustainable Development Strategy included the Canada Child Benefit (CCB) and Canada Workers Benefit (CWB) as relevant departmental actions.
• The audit found that while all five federal organizations followed the applicable guidance to develop their departmental strategies, four of the five organizations' actions either did not yet achieve their expected results, or the organizations were unable to assess their progress; only Statistics Canada achieved its results.
• The audit recommends that departments (including Finance Canada) should ensure their sustainable development strategies include relevant performance indicators that measure outcomes or outputs and measurable targets, and ensure to report the results of their contributions to the achievement of federal poverty reduction targets in accordance with their strategy timeframes.
• Finance Canada's implementation strategy included relevant performance indicators but not targets, as the outcomes of these measures are largely fixed and determined by legislation.
• Finance Canada agrees with the audit recommendation and committed in its response to strive to ensure that, in its next departmental sustainable development strategy, departmental actions include relevant performance indicators that can be linked to measurable and achievable targets.

Commissioner of the Environment and Sustainable Development
Audit Report: Net-Zero Accountability

Key Messages

• The Department of Finance supports the achievement of Canada's 2030 greenhouse gas mitigation target of 40-45% below 2005 levels, and leads the development of annual reports on key measures the federal public administration has taken to manage financial climate-related risks and opportunities.
• The Department of Finance agrees with the four audit recommendations identified in the 2025 Report of the Commissioner of the Environment and Sustainable Development (CESD) on Implementing the Canadian Net-Zero Emissions Accountability Act – Financial Measures.
• The Department has already fulfilled the first recommendation through Budget 2025 where the Government announced the Clean Electricity investment tax credit which is included in Bill C-15, the Budget Implementation Act.

Details & Supplementary Information

• The Canadian Net-Zero Emissions Accountability Act (the Act) was enacted by Parliament in 2021 to focus on promoting transparency and accountability in the federal government's efforts to enable Canada to achieve net-zero greenhouse gas emissions (GHGs) by 2050.
• Provisions in the Act require the Government to set national targets every five years, as well as to develop plans for achieving those targets (e.g., the 2030 Emissions Reduction Plan) and progress reports.
• Pursuant to section 23 of the Act, the Minister of Finance must, in cooperation with the Minister of Environment and Climate Change, prepare and release an annual report respecting key measures the federal public administration has taken to manage its climate-related financial risks and opportunities related to climate change.
• Pursuant to section 24(1) of the Act, the Commissioner must at least once every five years examine and report on the Government of Canada's implementation of the measures aimed at mitigating climate change.
• The report tabled on November 6, 2025, is the third report tabled by the Commissioner under the Act and sixteenth overall related to emission reduction measures. In total the Commissioner has examined 40 of the 149 emission reduction measures from the 2030 Emissions Reduction Plan and made 85 recommendations.
• The objectives of the audit were to determine whether:
  1. selected federal entities had made progress toward effectively implementing selected emission reduction measures to achieve Canada's greenhouse gas emission targets, and
  2. the Department of Finance Canada, in cooperation with Environment and Climate Change Canada, had reported publicly on climate-related financial risks and opportunities in a manner that aligns with best practices.
• The audit also examined progress made by the Office of the Superintendent of Financial Institutions and Environment and Climate Change Canada in advancing previous audit recommendations related to carbon pricing and climate-related risk disclosures of federally-regulated financial institutions.
• Regarding the Department of Finance, the audit found that
  1. nine financial measures (see below) were not effectively implemented to reduce emissions,
  2. limited progress had been made in supporting the development of the sustainable investment guidelines, and
  3. the Department's first report on climate-related financial risk management missed opportunities to align with corporate reporting best practices.
• The nine referenced financial measures are:
  • Clean Hydrogen Investment Tax Credit
  • Investment Tax Credit for Carbon Capture, Utilization and Storage,
  • Canada Growth Fund
  • Green Bonds
  • Investment Tax Credit for Clean Technology Manufacturing
  • Clean Technology Investment Tax Credit
  • Clean Electricity Investment Tax Credit
  • Cutting corporate taxes for manufacturers and producers of zero-emissions technologies
  • Phasing out inefficient fossil fuel subsidies

Automotive Sector Support

Key Messages

• The Government recognizes that the Canada's automotive manufacturing sector, and the 125,000 direct jobs it supports, are facing an existential threat due to unwarranted and unjustified U.S. tariffs.
• In response to U.S. tariffs on Canadian vehicles, we implemented reciprocal counter-tariffs on vehicles imported from the U.S. These measures are designed to defend Canadian interests, signal that unfair trade actions will not go unanswered, and encourage a return to rules‑based trade.
• To support auto companies continuing to manufacture vehicles in Canada during this period of uncertainty, we announced a performance-based remission framework. The remission granted is contingent on these companies continuing to produce vehicles in Canada and on completing planned investments.
• Recognizing the need for near-term flexibility, we also announced a pause of the Electric Vehicle Availability Standard requirements for model year 2026 vehicles, along with a 60-day review of the regulations. This review will help determine whether the framework remains effective, realistic and aligned with current market conditions.
• Since March 2025, the federal government has announced more than $25 billion in new measures to support workers and businesses most impacted by U.S. tariffs and other trade disruptions, including those in the automotive sector. These measures reflect the scale of the challenge and the government's commitment to responding with resolve.
• Among these supports, the Strategic Response Fund can help companies adapt to tariffs and position themselves for future growth. At the same time, auto workers are benefiting from a comprehensive reskilling package, a more flexible Employment Insurance system with extended benefits, and from a new digital jobs and training platform being developed with private-sector partners to connect Canadians more quickly to careers.

Details & Supplementary Information

U.S. Tariffs

• On April 3, 2025, under Section 232 of the Trade Expansion Act, the U.S. implemented 25 per cent tariffs on all passenger vehicles and light trucks, applicable to imports from all countries. For vehicles imported in compliance with CUSMA, the 25 per cent tariff will apply to the value of non-U.S. content only.
• On May 3, 2025, the U.S. implemented 25 per cent tariffs on all auto parts for passenger vehicles and light trucks, applicable to imports from all countries. CUSMA-compliant auto parts are currently not subject to these tariffs.
• In response to the U.S. section 232 tariffs on autos, Canada imposed countermeasures on April 9, 2025, which included:
  • 25 per cent tariffs on non-CUSMA compliant vehicles imported into Canada from the U.S.; and,
  • 25 per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant vehicles imported into Canada from the U.S.
• On April 15, 2025, the government implemented a performance-based autos remission framework for the five companies that produce autos in Canada to incentivize production and investment in Canada. This is in recognition that Canadian sales of imported U.S. vehicles support domestic manufacturing. Remission is contingent on continued production in Canada. If companies reduce their production, the number of vehicles they are permitted to import without paying tariffs will also be reduced.
• Since November 1, 2025, Canadian-made medium/heavy duty vehicles also face a 25 per cent U.S. tariff on non-U.S. content. There is also a 10 per cent tariff on buses with no exemption for U.S. content.

Electric Vehicle Availability Standard

• On September 5, 2025, to support the automotive sector as it navigates the immediate challenges from U.S. trade actions while preparing for a zero-emissions future, the government announced it will remove the 2026 target from the Electric Vehicle Availability Standard (EVAS) and launch a 60-day review of the overall regulation.
• The EVAS currently requires that at least 20 per cent of new light-duty vehicle sales in Canada be zero emissions by 2026, rising to 60 per cent by 2030 and reaching 100 per cent by 2035. The EVAS has been amended to remove the target for the 2026 model year vehicles to help reduce the economic pressure due to tariffs.
• The review of the EVAS will ensure that it continues to reflect market realities, remains effective for Canadians, and does not place undue burden on automakers.

Surtax on Chinese Electric Vehicles

• On January 16, Canada and China announced commitments to reduce certain trade barriers. As part of this, Canada committed to allow 49,000 Chinese EVs to be imported into Canada free or any surtax (only Canada's 6.1 per cent most-favoured nation tariff will apply). This amount is subject to a 6.5 per cent annual growth rate. The deal also requires a certain amount of imports to be less than $35,000 (culminating in 50 per cent of imports by 2030) to support EV adoption in Canada and limit competition with Canadian-produced vehicles.
• The deal is intended to catalyse new Chinese joint-venture investment in Canada with trusted partners to protect and create new auto manufacturing jobs for Canadian workers, and ensure a robust build-out of Canada's EV supply chain.

Business and Worker Support Measures

• Since March 2025, the federal government has announced more than $25 billion in new measures to protect workers and businesses in sectors most impacted by U.S. tariffs and other trade disruptions. This includes $5 billion over six years, starting in 2025-26 for the Strategic Response Fund to address trade pressures by ensuring companies can pivot, grow, or diversify their operations. Up to $1 billion over three years, starting in 2025-26, was provided to the Regional Development Agencies for the Regional Tariff Response Initiative to support businesses impacted by tariffs across all sectors, including automotive and automotive parts companies. The government has also introduced liquidity measures to assist small, medium, and large Canadian businesses.
• With regard to worker supports, the government is implementing a new reskilling package for workers – including workers in the automative sector ($570 million over three years, starting in 2025-26), will launch new Workforce Alliances and a new Workforce Innovation Fund to bring together employers, unions and industry groups to work on ways to help businesses and workers succeed in the changing labour market ($382.9 million over five years, starting in 2026-27, and $56.1 million ongoing), has made Employment Insurance – including the Work-Sharing program – more flexible and with extended benefits, and is launching a new digital jobs and training platform with private-sector partners to connect Canadians more quickly to careers ($50 million over five years, starting in 2026-27, and $8 million ongoing).

Bank of Canada and Foreign Exchange Reserves

Key Messages

Bank of Canada Negative Equity

• Beginning in March 2020, in response to the COVID crisis, the Bank of Canada purchased over $300 billion in Government of Canada bonds at historically low interest rates.
• As interest rates rose, the variable interest (based on the policy rate) the Bank pays on the settlement balances it created to purchase government bonds has exceeded the fixed interest it receives on the bonds it purchased, so the Bank is now incurring net interest losses.
• Losses associated with COVID-era quantitative easing are a common outcome internationally, with central banks including the United States Federal Reserve, the European Central Bank, and the Reserve Bank of Australia — alongside the Bank of Canada — experiencing significant losses following rapid post-pandemic rate increases.
• In the Budget Implementation Act, 2023, No. 1 (BIA-1 2023), the government amended the Bank of Canada Act to allow the Bank to not pay the government dividends until such time as the Bank is no longer reporting a negative equity position on their balance sheet.
• According to the Bank's 2024 annual report, the Bank recorded a net loss of $3.1 billion as at December 31, 2024. The Bank also reported a negative equity (deficiency) position of $8.7 billion as at December 31, 2024.
• The negative equity position has stabilized at $8.7 billion, as of September 30, 2025. The Bank's third quarter positive net income was its first since 2022.
• The Bank projects a modest return to profitability in 2025-2026. The negative equity position is expected to persist until 2028-2029, after which dividends to government will resume.
• Negative equity is not expected to affect the Bank's ability to conduct monetary policy.

Foreign Exchange Reserves

• The Government of Canada has a highly liquid foreign exchange reserves portfolio valued at US$128 billion. This portfolio is meant to support the currency or provide the government with emergency liquidity during a crisis.
• We do not hold any gold in our foreign exchange reserves. Instead, we believe that highly liquid financial assets are best suited to meeting the purposes of the portfolio.
• The foreign exchange reserves are more like an insurance fund than an investment fund.

Details & Supplementary Information

Negative Equity

• In March 2020 during COVID, the Bank of Canada (Bank) introduced the Government of Canada Bond Purchase Program (GBPP) to provide liquidity to the Canadian financial system.
• At the peak of the purchase program, the Bank had purchased over $300 billion in Government of Canada bonds. These bonds are now declining over time as they mature.
• As interest rates rise, the variable interest (based on the policy rate) the Bank pays on the settlement balances it created to purchase government securities under GBPP has exceeded the fixed interest it receives on the bonds it purchased, so the Bank is now incurring net interest losses.
• The accumulation of these losses has resulted in the Bank of Canada reporting a negative equity position on their balance sheet.
• According to the Bank's 2024 annual report, the Bank recorded a net loss of $3.1 billion as at December 31, 2024. The Bank also reported a negative equity (deficiency) position of $8.7 billion as at December 31, 2024.
• The Bank projects a modest return to profitability in 2025-2026 and the negative equity position is expected to persist until 2028-2029, after which dividends to government will resume.
• Going forward, the size and duration of these losses will depend on the path of interest rates.
• Such losses are not unique to the Bank. Many other central banks, including Australia, the U.K. and U.S., are also experiencing such losses.
• Negative equity is not expected to affect the Bank's ability to conduct monetary policy.
• In the Budget Implementation Act, 2023, No. 1 (BIA-1 2023), the government amended the Bank of Canada Act to allow the Bank to not pay the government dividends until such time as the Bank is no longer reporting a negative equity position on their balance sheet.

Foreign Exchange Reserves

• Canada's foreign exchange reserves are held in the name of the Minister of Finance. Department of Finance officials have responsibility for the management of this portfolio delegated to them by the Minister, while the Bank of Canada (as the fiscal agent for the government) is responsible for the day-to-day management of the portfolio.
• Canada's foreign exchange reserves were valued at US$128 billion in December 2025. The vast majority of these reserves are held in the Exchange Fund Account, which consists of highly liquid securities and deposits along with International Monetary Fund (IMF) Special Drawing Rights. The remainder of reserves consist of other IMF assts.
• Securities and deposits held in the portfolio are denominated in US dollars (70%), euros (16%), pound sterling (8%), and Japanese yen (6%). These assets are held in bonds issued by sovereigns, supranational agencies (e.g. World Bank, multilateral development banks, etc.), and agencies (e.g. highly rated government agencies separate from the sovereign). These highly liquid financial instruments must have a minimum A- credit rating and are meant to be able to be drawn upon during a crisis.
• The foreign exchange reserves portfolio does not hold any gold assets. In the early 1980s, the Government of Canada decided to convert the bulk of its gold holdings into high credit quality, marketable fixed-income securities that earn interest income and are denominated in foreign currencies. Canada's final gold assets were sold in 2016. Compared to gold, investments in liquid fixed-income securities are more clearly aligned with the purpose of the EFA.

Gold Reserves

Potential Question

• Why did Canada sell its gold reserves? Was this a mistake?

Key Messages

• The purpose of Canada's foreign reserves has changed significantly over the last 50 years.
• The end of the Bretton Woods system in the early 1970s meant that governments and central banks no longer needed to hold large amounts of gold as a principal reserve asset to back their currencies.
• Since then, Canada (along with other governments and central banks) has rebalanced foreign reserves away from gold and toward foreign government bonds, such as U.S. treasuries.
• Foreign bonds are better suited to meet the long-term objectives of Canada's foreign reserves –
  • they are subject to less price volatility,
  • they pay interest, and
  • they are significantly more liquid in times of stress.
• Against this backdrop, over 90 percent of the gold reserves were sold from 1970 to 1980, following the collapse of the Bretton Woods system. The remainder was sold over the years that followed.

*Redacted*

Annex – Background

Exchange Fund Account (EFA)

• The EFA, which is held in the name of the Minister of Finance, represents the largest component of Canada's official international reserves. It is a portfolio that is primarily made up of liquid foreign currency securities, deposits and special drawing rights (SDRs) (i.e., Canada's reserve position at the IMF) (Charts 1 & 2). The current value of the EFA holdings is US$118 billion.
• The legislative purposes of the EFA, as specified in the Currency Act, are to: (i) aid in the control and protection of the external value of the Canadian dollar; and (ii) to provide a source of emergency liquidity for the government.
• As fiscal agent of the Government, the Bank of Canada executes funding and investment transactions and manages EFA cash flows.

Bretton Woods System

• The Bretton Woods System (1944–1971) created a gold-dollar standard that pegged currencies to the U.S. dollar, which was convertible to gold at a fixed rate. This system effectively made gold the anchor of international monetary stability and, during that time, central banks (including the Bank of Canada) held large gold reserves to support the value of their currencies.
• When the U.S. suspended dollar convertibility into gold in 1971, countries moved to floating exchange rates and gold ceased to play a central role in currency valuation. Central banks shifted to holding foreign exchange reserves (e.g., USD, euros) instead of gold.
• Post-Bretton Woods, holding gold became economically inefficient – gold doesn't earn interest, and its price can be volatile. Canada began favoring more liquid and interest-bearing assets like foreign currencies and government bonds.

Canada's Gold Holdings

• The volume (value) of the gold reserves peaked in 1965 at 33 million ounces (US$1.2 billion). Canada reduced most of its gold holdings over the late-1960s and early-1970s. In December 1979, the Minister of Finance announced a policy to sell-off the remaining gold reserves (then just under 2 million ounces). The Bank of Canada facilitated these sales over the following twenty years, and the last gold bullion was sold in 2003 (Chart 3).
  • At today's prices, this 1965 amount of gold would be worth about US$130 billion. *Redacted*.
• While many advanced economies reduced their gold holdings post-Bretton Woods, Canada is the only G7 nation without gold reserves (Chart 5).
  • *Redacted*

Key Charts

Charts 1 & 2: The breakdown of Canada's reserves over time and the current makeup of Canada's Exchange Fund Account (EFA).

*Chart redacted*

Chart 3: The decline in Canada's gold holdings since the mid 1950s.

*Chart redacted*

Chart 5: Canada is an outlier among sovereigns in not have any gold reserves.

Author: Will Bradley (FMD-FRM)

Capital Budgeting Framework and New Budget Cycle

Key Messages

Capital Budgeting Framework

• The government has introduced a new approach to fiscal discipline and strategic investment, underpinned by a new Capital Budgeting Framework.
• The Framework provides a consistent way to classify spending that contributes to capital investment from day-to-day operating spending. 
• A significant portion of net new spending in Budget 2025 is classified as capital investment, totaling more than $32.5 billion over five years. This includes:
  • Generational investments in infrastructure,
  • Driving growth through a new productivity super deduction.
  • Supercharging homebuilding and productivity through Build Canada Homes.
  • Rebuilding domestic production capacity through a Defense Industrial Strategy.

New Budgeting Cycle

• With Budget 2025, the government also transitioned to a new fall budgeting cycle.
• This new timing will facilitate expenditure oversight by Parliamentarians and help builders, investors, and every level of government to make smarter, faster decisions.
• Providing certainty and predictability is what unlocks investment—so that projects can begin as soon as construction season starts.
• Fall budgets will be complemented by economic and fiscal updates in the spring.

Details & Supplementary Information

Capital Budgeting

• Cumulative capital investment over the 2024-25 to 2029-30 period, inclusive of planned investments in Budget 2025, is projected to total $311.5 billion on an accrual basis, or $502.2 billion on a cash basis. 
• Capital investments over the budget horizon account for a larger share of spending than during the previous decade (see chart below).

Fall Budgeting Cycle

Timing of Federal Budgets and Estimates

• Previously, the federal budget has conventionally tabled in February or March, with some exceptions particularly in recent years.

• Release dates for the Estimates follow the supply calendar:
  • Period ending June 23: Usually considers full supply of Main Estimates which, under House of Commons Standing Orders, must be tabled by March 1 each year and Supplementary Estimates (A).
  • Period ending December 10: Considers Supplementary Estimates (B).
  • Period ending March 26: Considers Supplementary Estimates (C) and interim for Main Estimates.

Timing of PT Budgets and Estimates

• Provincial and territorial governments have their own fiscal cycles and schedules.
• Budget dates generally vary within an 8-week period, with March being the most typical month.
• The Main Estimates are released annually, generally either at the same time as budgets or shortly thereafter.
• Supplementary Estimates are released as needed throughout the year. They are rare for some jurisdictions. In some instances, they may be published along with periodic economic and fiscal updates rather than stand-alone documents.

Climate Policy

Key Messages

Government Climate Agenda

• Climate action is not just a moral obligation—it's an economic necessity. To compete internationally, Canada will need to reduce its carbon intensity to meet the growing demand from global markets for products with low associated greenhouse gas emissions.
• Budget 2025 outlined the government's Climate Competitiveness Strategy, creating the conditions for the investment needed to build an affordable net-zero future.
• The government's commitment to a low-carbon economy is reflected in the work of the Major Projects Office. One of the criteria for designation as a "Project of National Interest" is how a project will contribute to clean growth and to Canada's objectives with respect to climate change.

Impact of Removal of Fuel Charge

• On March 14, 2025, the government announced that it will cease the application of the federal fuel charge, effective April 1, 2025. It also removed the requirement for provinces and territories to maintain a consumer-facing carbon price as of that date. These actions have reduced gasoline prices at the pump in most provinces and territories by up to 18 ¢/L compared to 2024–25 levels, thereby contributing to lower headline inflation.
• The government is winding down mechanisms used to return direct fuel charge proceeds to Canadians, small and medium-sized businesses, farmers, and Indigenous governments.
• Eliminating the fuel charge, which is currently before Parliament as part of Bill C-4, will give Canadian consumers and businesses certainty that the consumer carbon price is being permanently removed from legislation.

Impact of Clean Fuel Regulations

• The goal of the Clean Fuel Regulations is to significantly reduce pollution by making the fuels cleaner, while increasing incentives for the development and adoption of clean fuels, technologies and processes.
• The regulations require liquid fossil fuel (gasoline and diesel) suppliers to gradually reduce the carbon intensity – or the amount of pollution – from the fuels they produce and sell for use in Canada, leading to a decrease of approximately 15% (below 2016 levels) in the carbon intensity of gasoline and diesel used in Canada by 2030.
• The CFR are anticipated to increase the cost of fuels with an estimated price impact of $0.06 to $0.13 per litre for gasoline and $0.07 to $0.16 per litre for diesel (2021 dollars) in 2030.

Canada-Alberta MOU

• The Canada-Alberta Memorandum of Understanding, signed on November 27, 2025, outlines a shared commitment to collaborate on major energy and economic projects, including expanding electricity generation, advancing large-scale carbon capture and storage, and ensuring meaningful Indigenous participation
• The agreement emphasizes improving regulatory efficiency and coordination, including aligning carbon pricing, methane reduction measures, and using federal investment tax credits to support clean energy projects and attract private investment.
• It also focuses on developing future energy infrastructure, such as new interprovincial electricity interties and a nuclear power strategy, to achieve a net-zero power grid by 2050.
• The Canada-Alberta Memorandum of Understanding also commits to expanding federal Investment Tax Credits to encourage large scale carbon capture investments, including the Pathways projects and enhanced oil recovery projects.
  • Once constructed, the Pathways projects would help reduce the carbon intensity of Alberta oil and make some oil production among the lowest carbon-intensity in the world.
  • Enhanced oil recovery generates demand for captured CO₂, which can enable additional carbon capture projects to be financially viable while storing the captured CO₂ so it is not released into the atmosphere.

2030 Emissions Reduction Plan

• Canada's 2030 Emissions Reduction Plan was established in 2022, providing a sector-by-sector pathway towards achieving Canada's 2030 emissions reduction target and a road to net-zero by 2050, supported by $9.1 billion in federal investments.
• In December 2025, the government released the 2025 Progress Report on the 2030 Emissions Reduction Plan. It stated that Canada's announced measures are expected to reduce emissions by 28 per cent below 2005 levels by 2030 – below the government's 40-45 per cent target, which continues to be an ambitious target for Canada and serves as an important milestone on the path to net-zero by 2050.
• The Government of Canada will continue to explore the full suite of tools available to reduce emissions, including implementing those discussed in the Climate Competitiveness Strategy.

Details & Supplementary Information

• The Climate Competitiveness Strategy is anchored by three pillars:
  • Boosting investment through Clean Economy Investment Tax Credits to meet growing demand for clean energy, modernize electricity grids, and expand renewables, energy storage, and interprovincial interties.
    • Four of the Clean Economy investment tax credits have already been delivered and are now available to claim, which includes the Carbon Capture, Utilization, and Storage, Clean Technology, Clean Hydrogen, and Clean Technology Manufacturing investment tax credits.
    • Bill C-15 introduces legislation to deliver the 15% Clean Electricity investment tax credit and enhancements to investment tax credits that have already been implemented:
      • Expand eligibility to include systems that produce electricity, heat, or both electricity and heat from waste biomass and change the eligibility requirements for small nuclear energy under the Clean Technology investment tax credit.
      • Expand eligibility to include qualifying equipment used in eligible polymetallic mining projects and expand the list of critical minerals eligible under the Clean Technology Manufacturing investment tax credit.
      • Extend the availability of full credit rates for the Carbon Capture, Utilization, and Storage investment tax credit by five years, to 2035.
    • The government will be introducing legislation to deliver expanded eligibility to include hydrogen produced from methane pyrolysis under the Clean Hydrogen investment tax credit.
  • Strengthening industrial carbon pricing to reduce emissions and provide long-term certainty for businesses and investors. Effective industrial carbon markets are integral to driving investment in clean growth and emissions reductions. The Strategy will:
    • Engage with provinces and territories to develop a post-2030 carbon pricing trajectory. The government will set an industrial carbon price trajectory that supports net-zero by 2050, giving businesses the confidence they need to make long-term investments in climate competitiveness.
    • Engage with provincial and territorial governments on improvements to the federal benchmark. This process will ensure pricing systems across the country are working effectively and enable the implementation of a strengthened benchmark. Additionally, the government will explore opportunities to harmonize or link carbon credit markets.
    • Apply the federal backstop whenever a provincial or territorial system falls below a strengthened federal benchmark, to ensure a stringent price signal and level playing field across the country.
• The Canada Growth Fund will continue to issue contracts for difference as a means of further improving future carbon price certainty for investors making large, long-duration capital investments.
• Clarifying greenhouse gas regulations, including finalizing enhanced methane regulations for the oil and gas sector. By tightening these regulations, we will significantly reduce emissions across Canada, while providing clarity and predictability for industry. The government has also finalize new methane regulations for landfills. Methane is one of the most potent greenhouse gases—80 times more harmful than carbon dioxide over a 20-year period—and one of the easiest to reduce.

Comprehensive Expenditure Review

Key Messages

Government-wide messages

• Budget 2025 outlines the details of the Government of Canada's Comprehensive Expenditure Review (CER), which will contribute to balancing the government's operating budget by 2028-29.
• The CER will achieve savings of $9 billion in 2026-27, $10 billion in 2027-28 and $13 billion in 2028-29. Combined with other savings and revenues in Budget 2025, this will total $60 billion over five years, starting in 2025-26.
• Statutory transfer payments to provinces, territories and individuals were outside the scope of the review.
• Participating organizations are in the process of communicating these measures to their employees and collective bargaining agents, and the federal government will continue to identify more efficiencies and potential savings, which will be communicated in the 2026-27 Main Estimates and Departmental Plans.

Department of Finance

• The Department of Finance will implement CER measures resulting in savings of $10.7 million in 2026–27, increasing to $14.2 million in 2027–28 and $21.3 million in 2028–29 and ongoing, representing a cumulative reduction of 94 full-time equivalent positions by 2029–30.
• CER savings are being implemented through a planned reduction in staffing levels over three years, supported by workforce realignment and organizational changes that maintain delivery of core policy and corporate functions. As a result of careful planning, vacancy management, and limiting external staffing, the Department has already achieved approximately 60 per cent of the required CER savings.
• The remaining savings are being focused on reorganizing resources within and across policy branches, centralizing administrative functions across the Department, and achieving efficiencies in internal service areas by modernizing tools, processes, and functions.
• In December 2025, the Department provided affected letters to 84 employees, advising them that their services may no longer be required and introducing a voluntary departure program that will run to February 3^rd. The Department plans to reduce up to 40 positions through the voluntary departure program or subsequent workforce adjustment measures, as required.

Details & Supplementary Information

• The CER is not an across-the-board reduction exercise. It is a measured and strategic approach to improve public service productivity. To achieve this objective, federal departments and agencies undertook a thorough review of their organizations, identifying programs and activities that were underperforming, duplicative, or that had strayed away from the core federal mandate.
• The process applied to federally appropriated organizations, with the following exceptions:
  • agents of parliament and arms-length organizations to preserve their independence, and
  • cost-recovered organizations, because including them would not generate savings.
• Departments were directed to develop proposals using Gender-Based Analysis Plus to understand how Canadians, including vulnerable groups, would be affected. Planned savings fall under three themes generally:
  • Modernizing Government Operations ($25.2 billion over four years)
  • Streamlining Program Delivery ($1.5 billion over four years)
  • Recalibrating Government Programs ($17.5 billion over four years)
• Savings from the CER across departments and programs vary, reflecting the need to protect the important mandates that some organisations have in delivering frontline services, social programs, and priorities such as defence and security. As such, the government is setting a lower savings target of 2% for the following organizations:
  • Canada Border Services Agency (CBSA)
  • Canadian Institutes of Health Research (CIHR)
  • Canadian Security Intelligence Service (CSIS)
  • Communications Security Establishment (CSE)
  • Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC)
  • Indigenous Services Canada (ISC)
  • Department for Women and Gender Equality (WAGE)
  • Department of National Defence (DND)
  • Natural Sciences and Engineering Research Council (NSERC)
  • Royal Canadian Mounted Police (RCMP)
  • Social Sciences and Humanities Research Council (SSHRC)
• The savings identified through CER will contribute to returning the size of the public service to a more sustainable level, with an estimated reduction of 16,000 full-time equivalents, or roughly 4.5% of the workforce as of March 2025. Of these reductions, some 650 will be executive positions, representing about 7% of the executive population. These reductions will continue the trend towards a more sustainable public service size of roughly 330,000 by 2028-29.
• Savings will involve workforce adjustments and attrition to return the size of the public service to a more sustainable level. To manage these reductions to the greatest extent possible through attrition and voluntary departures, Budget 2025 proposes to offer a voluntary Early Retirement Incentive through the Public Service Pension Plan. Public servants at age 50 or above for Group 1 and age 55 or above for Group 2 who have at least ten years of employment, with at least two years of pensionable service in the Plan may apply to participate under parameters set by Treasury Board. Eligible employees will be able to retire with an immediate pension based on years of service with no penalty for early retirement. Implementation would proceed by January 15, 2026, or – as now is the case – when legislation receives Royal Assent, and the government intends to conclude the process within one year.

Housing Sector Overview

Key Messages

• Housing market activity softened in early 2025 amid trade policy uncertainty. Activity has since partially recovered but remains subdued, with most markets moving sideways or down in recent months.
• That said, housing starts remained elevated in 2025 and ended the year on a strong note, rising 11% in December following a similar gain in November. Overall, starts proved resilient in 2025, with nearly 260,000 units—up 5.6% from 2024.
• Federal policies have supported record levels of rental construction.
• Pent-up demand for housing, reflecting past strength in population growth, will continue to support residential investment.
• Housing affordability has improved but remains a challenge for people in major urban centers such as Toronto and Vancouver, suggesting growth in residential investment will be uneven across markets.
• Slower population growth combined with a steady increase in housing supply is helping the housing market gradually rebalance.
• Home prices are about 19 per cent below their February 2022 peak, easing the upfront cost of homeownership.
• Lower mortgage rates have reduced financing costs, with average monthly payments for new homebuyers down by more than $400 over the last two years.
• Rental market conditions have also improved in many regions. Rent inflation in December slowed to 4.9% from a peak of 8.9% in August 2024. The average asking monthly rent for an apartment has fallen by $330 in Toronto and $400 in Vancouver over the last two years.
• Through Budget 2025 and other targeted measures, the government is taking concrete action to expand the housing stock, support affordability, and ensure Canadians have access to the housing they need.

Details & Supplementary Information

• Housing affordability deteriorated sharply during the pandemic, as rapid price growth coincided with higher interest rates.
• As a result, the Bank of Canada's Housing Affordability Index—measuring the share of income a new homebuyer must devote to housing costs—rose from a 2015–2019 average of 36% to a peak of 54% in 2023Q3.
• Conditions have since improved. Home prices have declined to $673,000, and interest rates have moderated. As a result, housing affordability has improved from its peak, with the index declining to 44%, though it remains above pre-pandemic norms.
• Housing supply has responded. Housing starts remained strong in 2025, totalling 259,000 units for the year—well above the 2015–2019 average of 206,000 units. Recent policy measures have helped sustain elevated construction activity, with a notable surge in purpose-built rental housing, partially offsetting softer activity in the ownership and oversupplied condo segments.
• Resale market pressures have eased. The sales-to-new-listings ratio, a key indicator of resale market tightness, eased to 52% in December 2025 from a peak of 87% in January 2021, signalling a return to broadly balanced market conditions at the national level and reducing upward pressure on home prices.

Immigration and Levels Plan

Key Messages

• The 2026-2028 Immigration Levels Plan will stabilise permanent resident admission targets at 380,000 per year for three years, down from 395,000 in 2025, while increasing the share of economic migrants from 59% to 64%.
• The plan will reduce the target for new temporary resident admissions from 673,650 in 2025 to 385,000 in 2026, and 370,000 in 2027 and 2028.
• Budget 2025 also announced two one-time measures to convert up to 115,000 eligible Protected Persons in Canada and up to 33,000 work permit holders to permanent residency. 
• These targets keep permanent resident arrivals at less than one per cent of the population beyond 2027 and will reduce the total number of temporary residents to less than five per cent of Canada's population by the end of 2027. 
• Budget 2025 also announced the International Talent Attraction Strategy and Action Plan, including funding to recruit over a thousand highly qualified international researchers to Canada and a plan to launch an accelerated pathway for H-1B visa holders.
• As a result of recent policy changes, population growth has slowed sharply since mid-2024. The share of temporary residents in the total population has declined to 6.8% from a peak of 7.6%, driven by reductions in both student and worker populations. The pace of asylum claims has also moderated, with claims down by a third in 2025 compared to the previous year. 
• The plan is expected to boost GDP per capita and ease pressures in both the labour and housing markets. We are already seeing effects in the rental market: lower immigration, combined with new supply, is helping push rents down. Over the past two years, average monthly rents have fallen by about $330 in Toronto and $400 in Vancouver.

Details & Supplementary Information

Canada's annual Immigration Levels Plan establishes the number and mix of permanent residents that Canada intends to admit across all classes of immigration over a three-year period. Since the 2025-2027 plan, it also includes targets for new temporary resident admissions. The Minister of Immigration is required to table the Levels Plan on or before November 1 each year.

As presented in Budget 2025, the targets in the 2026-2028 Immigration Levels Plan keep permanent resident arrivals at less than one per cent of the population beyond 2027 and will reduce the total number of temporary residents to less than five per cent of Canada's population by the end of 2027.

• Annex 1 provides an overview of permanent and temporary resident admission targets presented in Budget 2025.
• The fiscal cost of the 2026-2028 Plan is $168.2 million over four years, starting in 2026-27, and $35.7 million ongoing. These costs primarily represent the net loss in fee revenue, driven by fewer temporary resident admissions.

Budget 2025 also announced funding for the following immigration-related measures:

• $478.5 million over three years, starting in 2025-26, for Immigration, Refugees and Citizenship Canada (IRCC), the Canada Border Services Agency (CBSA), and Justice Canada to enhance asylum system capacity, including for claim processing, security screenings, removals and legal aid services.
• $66.5 million over two years, starting in 2026-27, to the Immigration and Refugee Board of Canada to support asylum claim processing.
• $1.0 billion over two years, starting in 2025-26, for IRCC for the Interim Federal Health Program, which provides temporary essential healthcare coverage to asylum claimants and refugees.
• $54.1 million in 2025-26 to renew existing capacity at Employment and Social Development Canada to deliver the Temporary Foreign Worker (TFW) Program, including for application processing and compliance initiatives, such as inspections.
• $67 million in 2025-26 for IRCC to extend, until September 30, 2025, temporary accommodations for asylum claimants who would otherwise not have shelter, serving as a backstop to provincial and municipal immigration shelter programs.

Annex 1: Targets in the 2026-2028 Immigration Levels Plan

Comparison with the 2025-2027 Immigration Levels Plan

• Last year's 2025-2027 Levels Plan reduced admission targets to better align temporary and permanent resident immigration levels with community capacity.
• The 2026-2028 Levels Plan decreased the target further for all TR arrivals in 2026 by 25 percent compared to the 2026 target that was previously announced in the 2025-2027 plan.

• The 2026-2028 Levels Plan stabilized permanent resident admissions at 380,000 over the next three years.
• The permanent resident admission targets from the last three Levels Plans are provided below for reference.

Tax Debt and Corporate Write-offs

Key Messages

• The Canada Revenue Agency (CRA) is responsible for collecting tax debts owed to federal, provincial, and territorial governments under various acts, including the Income Tax Act and Excise Tax Act.
• Once the CRA has exhausted all avenues of collection, the CRA will deem the debt to be uncollectible, at which point it will be administratively written-off.
• With certain limited exceptions (e.g., debts that have reached collection limitation period), writing off a debt does not release the taxpayer from their obligation to pay off the debt. An improvement in the taxpayer's financial situation will result in efforts to collect the debt once again.
• In 2024-25, $5.3 billion in tax debt was written-off, including $1.0 billion in corporate tax debt. This is up from 2023-24, when $4.9 billion was written-off, including $0.5 billion in corporate tax debt.
• Corporate tax debt was the third largest write-off category, following GST/HST, and individuals and trusts.
• Under section 241 of the Income Tax Act, the CRA is legally prohibited from releasing "taxpayer information," which reveals the identity of a taxpayer, including corporations.
• The CRA continues to develop and implement collection strategies to improve its capacity to manage tax debt and avoid new debt from accumulating.
• Information relating to debts, obligations and claims written off or forgiven are itemized under each relevant federal act. They are available online under the Public Accounts of Canada, Volume III, Section 2 for each fiscal year.

Details & Supplementary Information

• Corporate write-offs have averaged $0.5 billion annually. This is an average 13.1 per cent of total write-offs over the last five fiscal years (based upon Note 3 of the CRA Financial Statements and Public Accounts of Canada, Volume III, Section 2).
• Other write-offs, including debts owing from GST/HST, employers, individuals and trusts, non-residents, COVID-19 recoveries and excise taxes and duties, were 82 per cent of all write-offs in 2024-25.
• A corporation may have multiple accounts (for example, a corporate account, a GST/HST account, and a payroll account), a credit on one account may be applied to a debt on another related account.

Trans Mountain

Key Messages

• The government's acquisition of the Trans Mountain Corporation and the completion of the expansion of the pipeline system was a necessary investment in the national interest.
• The expanded pipeline system has been operating for over a year and is providing a unique outlet for Canadian energy to global markets, and pricing support for Western Canadian oil, which in turn supports jobs and producers.
• The project is expected to generate up to $38 billion in additional provincial royalties and $21 billion in corporate income taxes, and to increase GDP by up to $127 billion over 20 years, according to Ernst & Young.
• Trans Mountain continues to explore growth projects that could further increase capacity and the value of the pipeline in the coming years.
• The government remains committed to Indigenous economic participation in Trans Mountain as an opportunity to create economic benefits for Indigenous communities.

Details & Supplementary Information

Project Benefits

• Trans Mountain helps Canada get a fair price for its oil and refined petroleum products by increasing export capacity to international markets. Since the start of commercial operations in May 2024, shipments have been exported to Asia (particularly China, but also South Korea, India and Brunei) and the US.
• The project is expected to generate up to $38 billion in additional provincial royalties and $21 billion in corporate income taxes, and to increase GDP by up to $127 billion over 20 years, according to Ernst & Young.
• The Trans Mountain Expansion Project created 37,000 jobs, with 25% of contracts awarded to Indigenous businesses and partnerships, totalling $6.5 billion.

Project Costs/Government's Investment

• The pipeline represents a long-term investment, and the government continues to work towards a positive return on its investment over time.
• The cost of the expansion project is estimated at $34.5 billion, based on TMC's 2025-2029 Corporate Plan summary published in June.
• TMC paid $938 million in in interest and dividends in the first three quarters of 2025 to the government, as owner.

Government Financing to Trans Mountain

• In December 2024, the government replaced Trans Mountain's third-party financing with government financing to considerably reduce interest costs. This provides savings to taxpayers of approximately $3.5 billion.

If pressed

• Accounting standards require that when government financing has a lower interest rate than market financing, this is termed a "government grant". This does not alter the expectation that all financing provided to TMC will be repaid.

Toll Hearings

• Tolls are the regulated fees shippers pay to move oil on the Trans Mountain system, set by the Canada Energy Regulator (CER) to recover operating and capital costs fairly.
• The CER has been conducting a regulatory process to approve Trans Mountain tolls that are just and reasonable.
• On October 27, 2025, at the request of Trans Mountain and with the support of certain shippers, the CER granted an abeyance of the toll hearings to allow Trans Mountain and its shippers to pursue discussions that would result in a new toll settlement; an update to the CER will be provided no later than February 6, 2026.

Trans Mountain Optimization

• Trans Mountain is proposing to upgrade pumps, pipeline sections, and facilities to move more oil. These projects could raise capacity from 890,000 to about 1.25 million barrels per day within two to five years.
• This projected total incudes flow additives and operating improvements that on their own could add another 50,000 to 90,000 barrels per day within 12 to 18 months.
• Port of Vancouver is leading dredging works to increase shipping efficiency near the Second Narrows. This project would allow tankers to load more fully, potentially reducing the number of transits, even while supporting the higher pipeline capacity.

Indigenous Engagement

• Indigenous economic participation in Trans Mountain will be an opportunity to create economic benefits for Indigenous communities.
• In September 2023, government officials met with Indigenous groups in Vancouver to share details about the next steps in the process. The government is working to re-engage with groups at the right moment to advance the process.

Public Accounts of Canada 2024 and 2025

Key Messages

2024 results compared to Budget 2024

• The $61.9-billion deficit recorded in 2024 was $21.8 billion higher than the $40.0-billion deficit projected in Budget 2024.
  • Revenues were $5.5 billion, or 1.2%, lower than forecast due mainly to lower personal income tax revenues, reflecting prior year reassessments recorded in 2023-24. In addition, lower corporate profitability reduced corporate income tax revenues.
  • Program expenses, excluding net actuarial losses, were $16.4 billion, or 3.6%, higher than projected, largely a result of higher provisions for Indigenous claims and revised allowances for doubtful accounts for receivables and loans.

2025 results compared to the 2024 Fall Economic Statement

• The $36.3-billion deficit recorded in 2025 was $12.0 billion lower than the $48.3-billion deficit projected in the 2024 Fall Economic Statement.
  • Revenues were $15.7 billion, or 3.2%, higher than forecast mainly due to stronger personal and corporate income tax revenues. This reflects strong labour market performance and wage growth, and a likely pull-forward impact from the planned, then annulled, capital gains inclusion rate increase.
  • Program expenses, excluding net actuarial losses, were $4.1 billion, or 0.9%, higher than projected, largely a result of higher than anticipated provisions for claims, and revised allowances for doubtful accounts for receivables and loans.

Details & Supplementary Information

• COVID-related exposures: As of March 31, 2025, the amount of money still owed to government for COVID-19 income support for individuals and Canada Emergency Business Accounts (CEBA) loans totalled $20.7 billion. While collection activities are ongoing, the government has recorded allowances for $15.8 billion, as these amounts are assessed as unlikely to be recovered (see Tables 1 and 2).

• Table 3 summarizes the results for 2023-24 and 2024-25. Tables 4 and 5 provide the 2023-24 and 2024-25 results respectively in comparison to projections provided in budgetary publications.

Contingent Liabilities

Key Messages

• Consistent with Canadian public sector accounting standards, the government records a contingent liability when the probability of a future payment is considered likely and the amount can be reasonably estimated.
• The amount recorded is an estimate based on available information at the time of closing of the Public Accounts. It reflects assumptions about the outcomes of negotiations, cases and claims, as well as methodologies for calculating damages and settlements.
• Increases in contingent liabilities in recent years have contributed to growth in direct program expenses.
• As of 2024-25, the total contingent liabilities recorded in the Public Accounts was $55 billion, down from $57 billion in 2023-24. The majority of this is associated with active alternative dispute resolution processes and pending or potential litigation.
• Actions are underway to improve visibility and oversight on large areas of contingent liabilities, such as Indigenous-related claims. In addition, experts are also being engaged on how to improve public communication of contingent liabilities.
• The government does not disclose annual amounts recorded for Indigenous-related claims. Year-end balances for Specific Claims and Comprehensive Land Claims are disclosed in Note 9 (Provision for Contingent Liabilities) of the Public Accounts' financial statements.

Details & Supplementary Information

Department of Finance Significant - Balances and Sensitive Transactions 2024

Key Messages

• Assets in the Foreign Exchange Account increased by $10.7 billion or 6.3% primarily due to an increase in investments held in the Exchange Fund Account, while liabilities decreased by $0.1 billion or 0.2% primarily due to foreign exchange revaluations.
• New loans of $2 billion were provided to Ukraine in 2024. The loan remains in good standing.
• The Department of Finance has transactions in the Public Accounts that are sensitive due to public interest. For example, procurement of professional and special services, losses, and Minister's expenditures. The department has controls in place to reduce the risks associated with these transactions.

Details & Supplementary Information

Foreign Exchange Accounts (vol I)

• In 2024, foreign exchange account assets increased by $10.7 billion or 6.3% (from $169.4 billion in 2023 to $180.1 billion in 2024) primarily due to an increase in investments held in the Exchange Fund Account.
• Foreign exchange account liabilities decreased by $0.1 billion or 0.2% (from $44.2 billion in 2023 to 44.1 billion in 2024) primarily due to foreign exchange revaluations. The foreign exchange accounts represent the largest component of the official international reserves of the government.

Financial Assistance – National Governments (vol I)

• In 2024, the government provided $2.0 billion (2023 - $4.9 billion) in financial assistance in the form of interest-bearing loans to Ukraine. As of March 31, 2024, the outstanding loan balance to the Ukraine was $6.1 billion ($4.3 billion as of March 31, 2023).

Contingent Liabilities (vol I)

• The Department of Finance has two loan guarantees and one insurance program guarantee. As at March 31, 2024, there were no provisions for loss made and all guarantees remained in good standing.
  • As of March 25, 2024, the European Bank for Reconstruction and Development's (EBRD) credit facility with Naftogaz has been fully repaid, resulting in Canada's guarantee of the facility no longer being in effect. (2024 - nil; 2023 - $53.5 million). Naftogaz is Ukraine's state-owned oil and gas company.
  • The loan guarantee to the International Bank for Reconstruction and Development (IBRD) for their loan to the Republic of Iraq increased by $0.3 million or 0.2% (from $159.5 million in 2023 to $159.8 million in 2024) due to changes in the CAD-USD foreign exchange rates.
  • The Mortgage or Hypothecary Insurance Protection Program's exposure increased by $7.0 billion or 2.7% (from $261.2 billion in 2023 to $268.2 billion in 2024) based on increases in the outstanding mortgage balances held by insurers under the program.
• No new callable share capital was subscribed to during 2024. The balance increased by $19 million or 0.1% (from $12,972 million in 2023 to $12,991 million in 2024) entirely due to foreign exchange fluctuations as share capital for Multilateral Development Banks are denominated in foreign currencies (USD and EUR).

Losses of Public Money and Property (vol III)

• In 2024, the Department of Finance had losses of public money totalling $2,795 (2023 – $7,753) due to unauthorized use of corporate acquisition cards. The amount recovered during 2024 was $2,295 and the remaining $500 was recovered in 2025. Unauthorized use was either due to compromised cards (recovered by the credit card company), or accidental use by employees (recovered from employees via cheque). Consequently, the Department has implemented enhanced controls, training, and oversight.
• In 2024, two security badges, one cell phone and one computer were stolen totaling $3,043 (2023 – two cell phones, five computers and one other electronic device for a value totalling $7,367). For stolen security badges, Security remotely disables access immediately upon discovery. For stolen phones, the Department securely wipes data. For stolen computers, the Department remotely changes all passwords and monitors to ensure that no unauthorized logins are detected.
• In the normal course of business, there were accidental losses, destruction or damage to cell phones, computers, security badges and other electronics valued at $35,000 (2023 - $93,000).

Professional and Special Services (vol III)

• Professional and special services operating expenditures for the Department of Finance decreased by 1.3 million or 8.2% (from $15.9 million in 2023 to $14.6 million in 2024).
• The most significant variances include a decrease in legal services of $1.8 million or 31.6% (from $5.7 million in 2023 to $3.9 million in 2024) offset by an increase in information services of $0.3 million or 12.5% (from $2.4 million in 2023 to $2.7 million in 2024) and an increase in training and educational services of $0.3 million or 30.0% (from 1.0 million in 2023 to $1.3 million in 2024).

Minister's Office Expenditures (vol III)

• The office expenditures for the Minister of Finance decreased by $0.1 million or 4.0% (from $2.5 million in 2023 to $2.4 million in 2024)
• The office expenditures for the Associate Minister of Finance decreased by $0.3 million or 60% (from $0.5 million in 2023 to $0.2 million in 2024). Office expenditures were minimal in 2024 due to the fact the Associate Minister of Finance left the department in July 2023.
• Only expenditures charged to the Department of Finance budget are reported in the department's Public Accounts. Since the Minister had dual roles, additional expenditures for the Deputy Prime Minister and Minister of Finance were charged to the Privy Council Office (PCO) budget and reported separately. Similarly, additional expenditures for the Minister of Tourism and Associate Minister of Finance were charged to the Innovation, Science and Economic Development Canada (ISED) budget and reported separately.

Travel Expenses of Ministers and Parliamentary Secretaries and International Travel Expenditures of Ministers, Parliamentary Secretaries and Ministers' Staff (vol III)

• Total travel expenditures of ministers and parliamentary secretaries decreased by $5,359 or 4.0% (from $132,692 in 2023 to $127,333 in 2024) and international travel expenditures of ministers and parliamentary secretaries, and ministerial staff decreased by $35,892 or 14.5% (from $247,762 in 2023 to $211,870 in 2024).

Department of Finance - Significant Balances and Sensitive Transactions 2025

Key Messages

• Assets in Foreign Exchange Account increased by $21.3 billion or 11.8% primarily due to an increase in investments held in the Exchange Fund Account, while liabilities increased by $3.6 billion or 8.2% primarily due to foreign exchange revaluations.
• In 2025, the government acquired $28.8 billion Canada Mortgage Bonds (CMBs) issued by Canada Housing Trust.
• In 2025, the Department of Finance issued $2.9 billion of loans to Ukraine.
  • $2.5 billion was disbursed under the Extraordinary Revenue Acceleration (ERA) loan agreement.
  • $400 million was disbursed through the International Monetary Fund Administered Account for Ukraine.
• The Department of Finance has transactions in the Public Accounts that are sensitive due to public interest. For example, procurement of professional and special services, losses, and Minister's expenditures. The department has controls in place to reduce the risks associated with these transactions.

Details & Supplementary Information

Foreign Exchange Accounts (vol I)

• In 2025, foreign exchange account assets increased by $21.3 billion or 11.8% (from $180.1 billion in 2024 to $201.4 billion in 2025) primarily due to an increase in investments held in the Exchange Fund Account.
• Foreign exchange account liabilities increased by $3.6 billion or 8.2% (from $44.1 billion in 2024 to 47.7 billion in 2025) primarily due to foreign exchange revaluations.
• The foreign exchange accounts represent the largest component of the official international reserves of the government.

Canada Mortgage Bonds (vol I)

• In 2025, the government acquired $28.8 billion (2024 - $7.5 billion) of Canada Mortgage Bonds (CMBs) issued by Canada Housing Trust. The government will purchase an annual maximum of $30 billion under this program.
• CMBs earn a fixed rate of interest, paid semi-annually, over the life of the bond. The investments bear interest at rates from 2.9% to 4.0% (2024 – from 3.72% to 3.99%).

Financial Assistance – National Governments (vol I)

• International Monetary Fund (IMF) Administered Account: In January 2024, the government agreed to provide $2.4 billion in financial support to Ukraine in the form of loans through the IMF Administered Account for Ukraine. The loans are provided pursuant to section 8.3 of the Bretton Woods and Related Agreements Act. During the year, $400 million was disbursed (2024 - $2.0 billion).
• Extraordinary Revenue Acceleration (ERA) Mechanism: The government committed to provide a $5.0 billion loan to Ukraine under the ERA mechanism. The loan is backed by revenues generated from immobilized Russian sovereign assets. $2.5 billion was disbursed in March 2025. The remaining $2.5 billion was disbursed after year end, in June and July 2025. These loans were provided on either Commercial Interest Reference Rates (CIRR), the government's average borrowing rate, or concessional rates and have repayment terms ranging from 5 to 30 years.
• As of March 31, 2025, the carrying value of all outstanding loans with Ukraine was $9.1 billion (2024 - $6.1 billion). The carrying value includes issuances of loans net of discounts for concessionary terms, discount amortization, and foreign exchange revaluations.

Losses of Public Money and Property (vol III)

• In 2025, the Department of Finance had losses of public money totalling $1,879 (2024 – $2,795) due to unauthorized use of corporate acquisition cards. The amount recovered during 2025 was $1,490, with $246 subsequently recovered in 2026 and $143 not recoverable due to exchange rate fluctuations between the initial transaction and the recovery.
• Unauthorized use was either due to compromised cards (recovered by the credit card company), or accidental use by employees (recovered from employees via cheque). Consequently, the Department has implemented enhanced controls, training, and oversight.
• In 2025, one tablet valued at $1,932 was stolen (2024 – two security badges, one cell phone and one computer was stolen totaling $3,043). The Department remotely changes all passwords and monitors devices to ensure that no unauthorized logins are detected.
• In the normal course of business, there were accidental losses or damages to cell phones, computers, security badges and other electronic valued at $22,000 (2024 - $35,000).

Professional and Special Services (vol III)

• Professional and special services operating expenditures for the Department of Finance increased by $0.4 million or 2.7% (from $14.6 million in 2024 to $15.0 million in 2025).
• The most significant variances include an increase in legal services with the Department of Justice for $1.0 million or 25.6% (from $3.9 million in 2024 to $4.9 million in 2025) offset by a decrease in business services of $0.8 million or 27.6% (from $2.9 million in 2024 to $2.1 million in 2025).

Minister's Office Expenditures (vol III)

• The office expenditures for the Minister of Finance decreased by $0.1 million or 4.2% (from $2.4 million in 2024 to $2.3 million in 2025).
• No expenditures were incurred for an Associate Minister of Finance, as the position was vacant this fiscal year (2024 - $0.2 million).
• Costs related to Minister's other roles, such as the previous Deputy Prime Minister role, were recorded and reported by the relevant department (i.e. the Privy Council Office).

Travel Expenses of Ministers, Parliamentary Secretaries, and Ministers' Staff (vol III)

• Total travel expenditures of ministers and parliamentary secretaires decreased by $85,993 or 67.5% (from $127,333 in 2024 to $41,340 in 2025) and international travel expenditures of ministers, parliamentary secretaires, and ministerial staff decreased by $135,406 or 63.9% (from $211,870 in 2024 to $76,464 in 2025).

Major Federal Transfers to Provinces and Territories 2023-24

Key Messages

• In 2023-24, major transfers to other levels of government grew by $9.4 billion from $90.8 billion to $100.2 billion.
• Growth was driven primarily by increases in the major federal transfers to provinces and territories, shown in the table below.

• These transfers are determined based on legislated formulas and are largely unconditional.

Details & Supplementary Information

1. What were the main drivers of the legislated growth in determining the 2023-24 major transfer payments?

• Equalization grows in line with the three-year average growth rate of nominal GDP.
• The Canada Health Transfer (CHT) grows at the greater of the three-year average growth of nominal GDP and a legislated minimum rate.
• Annual growth (9.32%) equals the average of GDP growth in 2021 (13.57%), 2022 (11.77%) and 2023 (2.62%). This exceeds the 5% minimum guaranteed growth for CHT announced on February 7, 2023.
• The Canada Social Transfer is legislated to grow at 3% per year.
• Territorial Formula Financing increases are mainly due to growth in provincial/local expenditures, which are major components of the formula.

2. What is the Quebec Abatement and how does it work?

• The Quebec Abatement consists of a reduction of 16.5 percentage points of federal personal income tax for all tax filers in Quebec, representing approximately $7.1 billion in 2023-24.
• Abatement allowed the Quebec government to increase the provincial tax rate by an equivalent amount with no impact on Quebec taxpayers. It was originally provided in lieu of cash federal support for certain social programs.
• Since major federal transfers to Quebec are calculated on the same basis as those to other provinces, the abated amounts must be recovered. This has no net impact on Quebec's total federal transfers.

3. How were the federal transfers allocated by PT in 2023-24?

Major Transfers to Provinces and Territories 2024-25

Key Messages

• In 2024-25, major transfers to other levels of government grew by $4.9 billion from $100.2 billion to $105.1 billion.
• Growth was driven primarily by increases in the major federal transfers to provinces and territories, shown in the table below.

Major Federal Transfers to Provinces and Territories
2023-24 and 2024-25 ($ millions)

• These transfers are determined based on legislated formulas and are largely unconditional.

Details & Supplementary Information

1. What were the main drivers of the legislated growth in determining the 2024-25 major transfer payments?

• Equalization grows in line with the three-year average growth rate of nominal GDP.
• The Canada Health Transfer (CHT) grows at the greater of the three-year average growth of nominal GDP and a legislated minimum rate. In 2024‑25, the legislated minimum rate was 5%.
  • Annual growth (5.38 per cent) equals the average of GDP growth in 2022 (11.77%), 2023 (1.96%) and 2024 (2.42%). This exceeds the 5% minimum guaranteed growth for CHT announced on February 7, 2023.
• The CST is legislated to grow at 3% per year.
• Territorial Formula Financing increases are mainly due to growth in provincial/local government expenditures, which are major components of the formula.

2. How do public debt charges compare with health transfers?

• Public debt charges exceeded the Canada Health Transfer in 2024-25 and are expected to continue to do so in each year of the forecast projection.
• By 2028-29 the government will balance day-to-day spending with revenues. At that point deficits will be attributable to investments to support long-term prosperity.
• Despite new nominal highs, debt charges remain relatively low as a share of GDP (currently at a ratio of 1.8%) and are projected to remain sustainable over the medium and long-term.

3. What is the Quebec Abatement and how does it work?

• The Quebec Abatement consists of a reduction of 16.5 percentage points of federal personal income tax for all tax filers in Quebec, representing approximately $7.5 billion in 2024-25.
• Abatement allowed the Quebec government to increase the provincial tax rate by an equivalent amount with no impact on Quebec taxpayers. It was originally provided in lieu of cash federal support for certain social programs.
• Since major federal transfers to Quebec are calculated on the same basis as those to other provinces, the abated amounts must be recovered. This has no net impact on Quebec's total federal transfers.

4. How were the federal transfers allocated by PT in 2024-25 and 2025-26?

Meeting Overview - Standing Committee on Public Accounts (PACP) - Department of Finance Appearance on the Public Accounts of Canada 2025

February 9, 2026 (11 a.m. to 1 p.m.)

Committee Study of the Public Accounts

• For its study on the Public Accounts, the committee typically holds three meetings:
  1. An in-camera session to educate members about the technical aspects of the Public Accounts including how they are prepared and presented. This year, that meeting took place on September 18, 2025, with the Canadian Audit and Accountability Foundation.

  2. Public meeting with the Auditor General of Canada, Comptroller General of Canada, and Deputy Minister of Finance, which will occur on February 9, 2026, to consider the 2025 Public Accounts.

     Typically, members use this meeting to ask questions about that year's public accounts. Many of the questions focus on any issues or areas for improvement noted in the Auditor General's independent auditor's opinion of the consolidated financial statements. Members may also take the opportunity to ask officials questions about other matters within their department's mandate.

  3. One or more meetings to develop a report to the House on their study.

     The committee's reports have typically provided on average of one to four recommendations for improvements to departments and agencies' administrative and financial practices and controls. Usually, the committee requests a government response to its report, which must be tabled within 120 days.

Meeting Day: Questions and Answers

• While it is expected that the Auditor General and Comptroller General will give brief opening statements, *redacted*, as the appearance primarily relates to answering questions on Section 1, Volume I of the Public Accounts, and financial information pertaining to the Department of Finance included in the Public Accounts.
• PACP members ask questions of any witnesses they choose in rotating rounds. The first round provides six minutes for questions and answers to each party (i.e., beginning with Conservatives). For all subsequent rounds, the Liberals and Conservatives receive five minutes, while the Bloc Québécois receives two and a half minutes, until the meeting time is exhausted.
• Finance officials are often asked about the variance between forecast and actual results, as well as the economic and fiscal position of the government, including projections in the federal budget. The briefing binder provided to you focusses on these issues, and current Finance-led issues of importance to opposition members.
• Questions may also be posed about individual departmental line items. Unless a general answer can be provided, Finance officials will normally defer these detailed questions to the responsible department or agency.

Current Parliamentary Environment

Committee Overview

• PACP members are expected to follow-up on previous recommendations related to the Public Accounts. For example, in past reports, PACP has consistently called for amendments to the Financial Administration Act to establish a fixed date in October for tabling of the Public Accounts to better align with the budget cycles of provincial and peer jurisdictions. PACP has also recommended that Crown corporations disclose expenditures in the same manner as federal departments.
• The committee did not publish reports on the 2023 and 2024 Public Accounts. The absence of the 2024 report is largely due to the timing of the 2024 Public Accounts, which were tabled at the end of the fall session (December 16, 2024), shortly before Parliament was prorogued (January 6, 2025) and then dissolved on March 23, 2025. During an appearance with government officials on December 18, 2024, the chair expressed dissatisfaction with the delayed tabling and noted the committee's longstanding recommendations.
• Beyond the Public Accounts, committee members are expected to focus questions on Budget 2025 given its recent tabling. All committee members may raise questions aimed at better understanding the new budgeting framework, and some may express scepticism about it and accuse the Government of using it as a means to hide the true size of the deficit. See below for other Budget 2025-related issues of concern to each party.
• The committee is also in the process of examining several Auditor General reports including the audit of the Canada Revenue Agency's service delivery standards. Given the Minister of Finance's dual mandate, members could raise questions about this audit and the CRA's 100-day plan.

Opposition Party Perspectives

• The Conservative Party is expected to focus on perceived high government spending and question the government's ability to deliver services and programs effectively. They have asserted that government spending has led to higher debt and deficit levels, contributing to increased costs of living. Members frequently reference Canada's GDP-per-capita, productivity, and employment as indicators of Canada's economic underperformance.
• Following Budget 2025, the party has raised questions about the Government's continuation of industrial carbon pricing and its response to U.S. tariffs, namely the negative impact on Canadian workers and industries.
• A key point of contention for the party involves the government's deficit and fiscal anchors (e.g. debt-to-GDP ratio), which they argued have eroded Canadians' living standards. Members have supported their claims by referencing increased goods prices, growing food bank use, rising housing prices, and general affordability challenges. The party has also criticized the Government's overall financial management noting that more money was being spent on servicing the debt than on health transfers, which they argued translates into "more money for bankers and bondholders than for doctors and nurses".
• The Bloc Québécois has been critical of the government's management of public funds, expressing concerns about deficit projections and fiscal management. The party has questioned the government's capacity to effectively deliver programs and services, especially given announced cuts through the Comprehensive Expenditure Review. In previous years, the Bloc has frequently called for greater transparency regarding the expenditures of Crown corporations.
• Following Budget 2025, the party has raised concerns about the growing debt and deficit, continued financial support for oil and gas, Canada's response to U.S. tariffs (i.e., impact on Quebec and perceived lack of relief measures), and federal transfer amounts. A key point of contention for the party relates to Canada Carbon Rebate payments issued to Canadians in spring 2025, ahead of the election. Although Quebec has its own carbon pricing system, the Bloc has maintained that Quebec should be compensated $814 million for its share of the rebate.
• The Liberal Party members are expected to reinforce the need to improve transparency and reporting timelines of the Public Accounts while maintaining accuracy. During past meetings, members have sought information on Canada's overall economic performance, the government's debt management strategy, and public debt charges.

Committee Member Biographies
Standing Committee on Public Accounts (PACP)

About the Committee

The Standing Committee on Public Accounts is Parliament's audit committee, as it reviews the work of the federal government's external auditor, the Auditor General of Canada.

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings. The committee also reviews the federal government's consolidated financial statements – the Public Accounts of Canada – and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the committee may present a report to the House that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.

Government policy, and the extent to which policy objectives are achieved, are generally not examined by the committee. Instead, the committee focuses on government administration – the economy and efficiency of program delivery as well as the adherence to government policies, directives, and standards. The committee seeks to hold the government to account for effective public administration and due regard for public funds.

The committee also reviews the federal government's consolidated financial statement and estimates of the Office of the Auditor General as well as makes recommendations to the government for improvements in spending practices.

Other responsibilities include the economy, efficiency and effectiveness of government administration, the quality of administrative practices in the delivery of federal programs, and the government's accountability to Parliament regarding federal spending.

Conservative Party

Gérard Deltell
Conservative, Louis-Saint-Laurent—Akiawenhrahk (Quebec)

Biography

Gérard Deltell has been the Member of Parliament for Louis-Saint-Laurent—Akiawenhrahk since 2015. He currently serves as Conservative Opposition Critic for Revenue.

From 2008 to 2015, Mr. Deltell was a member of the National Assembly of Quebec representing the riding of Chauveau. He also served as leader of the Action démocratique du Quebec (ADQ) from 2009 until it became Coalition Avenir Québec (CAQ) in 2012. In the early 1980s, Mr. Deltell was president of his riding association and president of his school's Progressive Conservative association.

Prior to entering politics, Mr. Deltell spent 20 years in in broadcast journalism working with several TV networks including TQS, Radio-Canada, and TVA. Later in his journalism career, he worked as a parliamentary reporter at the National Assembly until 2008. He also worked as a columnist for various radio stations.

Mr. Deltell holds a history degree Laval University. He also took broadcasting courses at École de radio et de télévision ProMédia.

Ned Kuruc
Conservative, Hamilton East-Stoney Creek (Ontario)

Biography

Ned Kuruc was first elected as the Member of Parliament for Hamilton East-Stoney Creek in 2025.

Previously, he was a local entrepreneur, owning and operating different businesses in Stoney Creek and Hamilton such as Attic Pizza and Neku Cannabis. He was also a global sports entertainment executive.

Stephanie Kusie
Conservative, Calgary Midnapore (Alberta)

Biography

Stephanie Kusie has been the Member of Parliament for Calgary Midnapore since a by-election in 2017. She currently serves as the Conservative Opposition Critic for the Treasury Board and King's Privy Council.

She was previously a diplomat for the Canadian federal government, serving in Argentina in 2006. She was chargée d'affaires and Consul for Canada in El Salvador from 2006-08, and Consul for Canada at the Consulate in Dallas, Texas from 2010-13. She also served as policy advisor to Peter Kent during his time as Minister of State for Foreign Affairs for the Americas in 2009.

Ms. Kusie holds an MBA from Rutgers University and a bachelor's degree in politic science from the University of Calgary.

John Williamson, Chair
Conservative, New Brunswick Southwest (New Brunswick)

Biography

John Williamson has been the Member of Parliament for New Brunswick Southwest since 2019. He also represented the riding from 2011 until 2015.

Previously, Mr. Williamson was the Director of Communications in the Office of the Prime Minister under Stephen Harper from 2009 to 2011. Before entering politics, he served as Ontario Director of the Canadian Taxpayers Federation from 2002 to 2003 and National Director from 2004 to 2008. He has also worked for the Atlantic Institute for Market Studies, is a past Fellow with the Manning Centre for Building Democracy and Senior Fellow with the Fraser Institute. He also worked as an editorial writer for the National Post and was featured in several national publications.

He has a master's degree in economic history from the London School of Economics and a bachelor's degree from McGill University.

Bloc Québécois

Sébastien Lemire, Vice-Chair
Bloc Québécois, Abitibi--Témiscamingue (Quebec)

Sébasiten Lemire has been the Member of Parliament for Abitibi—Témiscamingue since 2019. He is the Bloc Québécois spokesperson for Indigenous Relations, Northern Development, Sports, and Public Accounts.

Prior to entering federal politics, Mr. Lemire was a public relations specialist. He worked at the Fédération de l'UPA d'Abitibi-Témiscamingue, the Mercier—Hochelaga-Maisonneuve borough of the City of Montreal, the Juripop Legal Clinic, Octane Stratégies, and the Forum jeunesse de l'Île de Montréal of the Conférence régionale des élus de Montréal.

Mr. Lemire holds degrees in political communication, public leadership, and corporate governance.

Liberal Party

Anthony Housefather
Liberal, Mount Royal (Quebec)

Anthony Housefather has been the Member of Parliament for Mount Royal since 2015. He serves as Parliamentary Secretary to the Minister of Emergency Management and Community Resilience.

Prior to his election to the House of Commons, he worked at Dialogic Corporation, a multinational technology company, where he eventually became Executive Vice-President of Corporate Affairs and General Counsel. Mr. Housefather was a city councillor and then as Mayor of the City of Cote Saint-Luc for 10 years prior to being elected federally. He has served as a volunteer for many years with several community organizations.

Mr. Housefather holds an MBA from Concordia University's John Molson School of Business as well as a Bachelor of Law and civil law degree from McGill University.

Tom Osborne
Liberal, Cape Spear (Newfoundland and Labrador)

Tom Osborne was first elected as Member of Parliament for Cape Spear in 2025. He currently serves as Parliamentary Secretary to the President of the Treasury Board.

Prior to entering federal politics, Mr. Osborne was a member of the Newfoundland House of Assembly from 1996 to 2024, representing the district of Waterford Valley. During this time, he served as Minister of Health and Community Services, and Minister of Education. He was Speaker of the House of Assembly from 2015 to 2017.

Kristina Tesser Derksen
Liberal, Milton East—Halton Hills South (Ontario)

Kristina Tesser Derksen was first elected as Member of Parliament for Milton East—Halton Hills South in 2025.

Prior to entering federal politics, Ms. Tesser Derksen was a municipal councillor for Milton from 2018 to 2025. She also served on several volunteer boards in her community including the Townsend Smith Foundation, Conservation Halton, and Milton Chamber of Commerce.

Previously, Ms. Tesser Derksen practiced law in downtown Milton.

Jean Yip, Vice-Chair
Liberal, Scarborough—Agincourt (Ontario)

Jean Yip has been the Member of Parliament for Scarborough—Agincourt since a by-election in 2017.

Prior to her election, Ms. Yip pursued a career in insurance and underwriting, becoming a team leader in her field. She completed her degree at the University of Toronto and holds a Fellow Chartered Insurance Professional Designation.

In her community, she taught Sunday school at her church for over 13 years and was involved with the STEM Fellowship Board of Directors which promotes computer literacy and programming capacity among youth.