Department of Finance Canada's 2026-27 Departmental Plan

Sustainable Fiscal Capacity

Through prudent and transparent fiscal management, the Department will support the sound stewardship of Canada's public finances and the sustainability of the federal fiscal framework. In 2026–27, the Department will enhance fiscal transparency, modernize capital and operating budgeting, manage federal borrowing responsibly, and expand green and sustainable bond programs to help finance Canada's clean economy and advance the government's environmental and economic priorities.

Results we plan to achieve:

The Department will continue to provide leadership in fiscal policy advice and maintain a sound fiscal framework that supports economic growth and affordability for Canadians.

• Manage the preparation of the federal budget and fiscal updates, informed by up-to-date economic analyses and forecasts. 
• Continue to implement the Government of Canada's fiscal plans, including advancing capital and operating budgeting reforms to improve investment planning.
• Collaborate with other departments to align fiscal planning with key national priorities such as housing, productivity, innovation, defence, infrastructure, and natural resource development.
• Leverage digital solutions and economic analysis to enhance forecasting, financial reporting, and evidence-based policy advice.
• Continue to improve fiscal transparency by enhancing contingent liability and fiscal risk reporting. 

The Department will continue to manage federal borrowing prudently and foster confidence in Canada's capital markets.

• Manage the government's debt program to raise stable and low-cost funding and maintain well-functioning markets for Government of Canada securities.
• Optimize the government's debt management strategy to respond to evolving economic and market conditions and heightened geopolitical uncertainty.
• Strengthen investor engagement and communication to reinforce confidence in Government of Canada securities.
• Manage the government's foreign reserves and currency system effectively to support financial stability.
• Continue to implement and expand Canada's Green Bond Framework and develop a Sustainable Bond Framework to support future green, social, and transition bond issuances.

Sound Social Policy Framework

Finance Canada will work with provinces, territories and Indigenous governments to help strengthen Canada's social foundations and support income security for Canadians. Working collaboratively across jurisdictions, the Department will strengthen Canada's social policy framework, so it remains fair, sustainable, and responsive to Canadians' needs. In 2026–27, the Department will lead the 2025-2027 Triennial Review of the Canada Pension Plan, advance work on the 2029 renewal of Equalization and Territorial Formula Financing, advance distinctions-based fiscal relationships with Indigenous partners, and provide policy advice on housing, pensions, and affordability to support a secure and inclusive economy.

Results we plan to achieve:

The Department will keep federal, provincial, territorial and Indigenous fiscal arrangements effective and fair so governments can deliver services Canadians rely on. 

• Convene and lead Federal-Provincial-Territorial finance ministers' meetings and senior-official engagements to advance shared fiscal priorities—such as housing, transfers, and trade-response coordination—and address broader issues of mutual interest.
• Work in collaboration with provinces and territories to advance the 2025–2027 Triennial Review of the Canada Pension Plan.
• Advance preparatory work for the 2029 renewal of Equalization and Territorial Formula Financing programs, including engagement with the provinces and territories.
• Develop analysis and advice to support fiscally sustainable transfer arrangements that reflect demographic trends and evolving cost pressures.

Finance Canada will support the government's commitment to expand housing supply and strengthen social policy outcomes by advising on financing options and targeted measures. 

• Continue working with departments and central agencies to implement Canada's housing response and advise on measures to improve the availability and quality of social and affordable housing.
• Provide fiscal policy advice on housing affordability and supply, including options for financing and incentives, such as public lands use and targeted budget measures, to accelerate construction and support affordability.
• Assess the fiscal implications of housing affordability measures announced in Budget 2025 and recommend options to improve affordability while preserving fiscal sustainability.
• Work across government to advise on social priorities (health, child care, dental care) to ensure services can be accessed and funding models are affordable and stable over time.

The Department will support reconciliation with Indigenous Peoples by fostering partnerships, strengthening fiscal relationships and advance government priorities.

• Work with departments and central agencies to support reconciliation with Indigenous Peoples, including implementation of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) Action Plan and advancement of a new fiscal relationship.
• Work with Indigenous partners to co-design distinctions-based fiscal arrangements, including options for Indigenous revenue-raising and access to capital.
• Work with relevant internal and external stakeholders to analyze and implement Indigenous economic measures proposed in Budget 2025 and advise on scalable models for Indigenous participation in major projects.

Finance Canada will help ensure social spending is transparent, informed by evidence, and assessed for how fairly benefits are shared among different groups of Canadians.

• Continue to apply GBA Plus across budget and tax proposals and publish required gender and diversity analyses as required under the Canadian Gender Budgeting Act.

Broadly-based and Sustainable Economic Growth

The Department will promote broadly based and sustainable economic growth by fostering productivity, investment, and innovation. In 2026–27, the Department will advance clean-economy policies, strengthen trade and investment relationships, catalyze private sector investment, deepen Indigenous economic partnerships, and promote competitive markets that create opportunity for Canadians while supporting the transition to a net-zero economy.

Results we plan to achieve:

The Department will focus on strengthening trade relationships, improving supply-chain resilience, and removing barriers to doing business across Canada.

• Advance the government's agenda on Canada-U.S. trade by strengthening economic cooperation and responding to U.S. policies that impact Canadian interests, including by advancing policies to mitigate those impacts.
• Provide policy advice to support diversified trade and investment relationships.
• Advise on policies to improve supply chain resilience, including cooperation with trusted partners on advanced manufacturing and critical minerals.
• Continue to support international cooperation that enhances Canada's economic security and market access through multilateral and regional frameworks.

The Department will continue to promote a more inclusive, innovative, and competitive economy that improves productivity and participation for all Canadians.

• Provide policy advice to support productivity and competitiveness initiatives, including advice on the design of measures to drive productivity and growth announced in Budget 2025.
• Continue work with government departments and central agencies to foster inclusive economic growth through policies that promote labour market inclusion and skills training.
• Collaborate with departments and central agencies to advance policies that promote economic development, secure Canada's economic interests, and make life more affordable for Canadians.
• Support fair and competitive marketplace policies that foster innovation, investment, and the commercialization of Canadian ideas.
• In collaboration with other departments, advise on the sound stewardship of government assets and investments, providing a commercial lens on strategies that consider the impact of these assets on growth and productivity as well as Canada's finances.

Finance Canada will continue to support the government's efforts to attract investment and Canada's transition to a clean, low-carbon economy.

• Continue to advance and monitor implementation and take-up of the clean economy investment tax credits.
• Collaborate with federal organizations to report on climate-related financial risks and opportunities under the Canadian Net-Zero Emissions Accountability Act.
• Support the development of Canada's Climate Competitiveness Strategy to ensure industries remain globally competitive while reducing emissions.
• Work with provinces, territories, and industry partners to advance clean electricity generation and transmission to meet future demand.
• Work with Crown corporations and departments and agencies to catalyze private sector investment in nation-building and major projects, as well as in existing assets, particularly in the infrastructure, transportation, energy, and natural resource sectors.
• Provide fiscal and policy analysis on investment trends in green technology and sustainable finance to attract private capital and strengthen Canada's clean economy leadership.

The Department continues to advance Indigenous economic participation and strengthen fiscal relationships that promote self-determination.

• Work with government departments to advance economic reconciliation with Indigenous Peoples by leveraging available financial and policy mechanisms that promote Indigenous economic participation and increase access to affordable capital.
• Work with Indigenous governments to explore opt-in approaches for tax jurisdiction arrangements and create more opportunities for Indigenous governments to grow their revenues.
• Support Indigenous access to affordable capital and federal financial tools that enable equity participation in major projects, including the Indigenous Loan Guarantee Program.
• Maximize the value of Canada's energy resources, including continued advancement of opportunities for Indigenous ownership and participation.
• Collaborate with Indigenous partners and federal departments to identify new fiscal mechanisms that promote stable, long-term revenue generation for Indigenous governments.

Sound Financial Sector

Canada's financial system enables households and businesses to save, invest, and borrow with confidence. In 2026–27, the Department will lead efforts to  safeguard stability in the financial sector, ensure Canadian companies and projects can access capital and grow the economy, enhance competition in the banking sector and consumer protection, strengthen Canada's anti-money laundering and anti-terrorist financing framework to prevent our financial system from being abused, support innovation in digital finance, and mobilize private capital to support the transition to a clean economy and support housing affordability.

Results we plan to achieve:

The Department will strengthen Canada's financial sector framework to promote stability and efficiency, ensure access to capital, increase competitiveness, maintain trust, manage risks, and protect Canadians from financial crimes and shocks.

• Conclude a comprehensive review of the federal deposit insurance framework to maintain stability, depositor protection and enhance competition.
• Support private investment in the Canadian economy by the financial sector.
• Help smaller banks and credit unions grow and compete, providing consumers with more options.
• Streamline and simplify rules and ensure financial institutions can fully contribute to the economy.
• Protect Canadians from evolving financial-sector integrity and security risks, including foreign interference, money laundering, terrorist financing and sanctions evasion, by advancing risk-based responses to strengthen financial crime prevention and enforcement.
• Advise on insurance-based strategies for managing natural-disaster risks such as earthquakes.
• Collaborate with provinces to modernize pension frameworks and strengthen the sustainability of federally regulated private pension plans.
• Help Canadians switch between financial institutions by prohibiting investment and registered account transfer fees and requiring timely transfers of those accounts.
• Develop Canada's first-ever whole-of-government National Anti-Fraud Strategy to combat consumer-targeted financial fraud, including enhanced fraud-related consumer protection requirements for banks.
• Protect Canadians by working with banks to develop a voluntary Code of Conduct for the Prevention of Economic Abuse to set clear expectations for how banks can identify, prevent and respond to situations where someone uses financial control to harm another person.

Efforts will focus on enabling safe, efficient, stable and accessible financial services that foster innovation and inclusion.

• Continue to advance work on implementing the Consumer-Driven Banking Framework, including the development of regulations and the designation of the technical standards body to enhance innovation and competition in the financial sector.
• Advance policy work and consultation to support future legislative amendments to advance the next phase of consumer-driven banking, which will include payment initiation.
• Continue to advance the government's payments modernization plan by supporting the launch of the Real-Time Rail fast payment system in 2026 to help make payments safer, faster, and more convenient.
• Continue to advance work on the federal stablecoin framework, including the development of regulations, to help build trust in digital payments.

The Department will lead efforts to mobilize Canada's financial sector to support the transition to a clean economy and restore housing affordability.

• Finalize sustainable investment guidelines and collaborate with provinces and territories to advance climate disclosures.
• Work with the Canada Mortgage and Housing Corporation to support the financing of new multi-unit rental housing through mortgage loan insurance and securitization.
• Provide policy advice in relation to Ministerial regulations that set minimum requirements for homeowners to access mortgage loan insurance.

Fair and Competitive Tax System

Canada's tax system funds the public services Canadians rely on and shapes the conditions for long-term economic growth. In 2026-27, the Department will strengthen Canada's tax framework by developing and implementing policies that enhance fairness, encourage innovation, and maintain the competitiveness of the Canadian economy. Finance Canada will also advance international collaboration to improve tax transparency and ensure that multinational corporations pay their fair share.

Results we plan to achieve:

The Department will help make the tax system fairer while keeping Canada attractive to investment.

• Develop and refine tax policy proposals that improve the fairness, competitiveness, and integrity of Canada's tax system, including measures to strengthen compliance and transparency.
• Continue to advance the implementation and monitor take-up of the clean economy investment tax credits, as well as enhancements to the Scientific Research and Experimental Development tax incentive program aimed at broadening eligibility and stimulating additional R&D investment.
• Maintain close monitoring of tax competitiveness and propose adjustments as needed to preserve Canada's position relative to peer countries.
• Support negotiations to update and expand Canada's network of bilateral income tax treaties and other international agreements.
• Strengthen tax integrity by proposing legislative and administrative measures to close avoidance opportunities and improve enforcement coordination with Canada Revenue Agency, Department of Justice Canada, and regulators.
• Publish updated tax-expenditure reporting, including on the gender and diversity impacts of tax expenditures, and continue to integrate GBA Plus into tax policy design and Budget analysis.

The Department will work with other countries to make taxes on multinational profits fair, consistent and transparent.

• Work with international partners to ensure multinational enterprises pay a fair and consistent share of tax in the countries where they operate.
• Continue to lead Canada's engagement on OECD two-pillar reform, including Pillar Two (global minimum tax) and coordinate domestic implementation with relevant partners.
• Implement the new OECD reporting framework for crypto-asset transactions and coordinate with the Canada Revenue Agency and regulatory partners to prevent tax avoidance using digital technologies.
• Support international efforts to improve tax transparency and information exchange, including by advancing multilateral reporting and compliance standards.

The Department will use tax tools to support investment, clean growth and jobs while protecting revenues.

• Advance implementation of tax incentives under the Productivity Super-Deduction, which provides broad support for new capital investment through accelerated capital cost allowances.
• Provide policy advice to ensure clean economy investment tax credits are supporting investment and propose adjustments as needed.
• Advise on tax measures that support housing affordability where tax policy tools are appropriate and consistent with federal housing objectives.

Effective International Engagement

Canada must stay engaged with the world to protect its economic security and sustain long-term growth. In 2026–27, the Department will help safeguard Canada's economic interests by strengthening multilateral cooperation, advancing trade policies to build resilience, and attracting investment that supports sustainable growth. Priorities include defending Canadian industries, expanding export markets, deepening collaboration with international partners, and supporting global finance efforts that advance clean, job-creating investment.

Results we plan to achieve:

The Department will help defend Canadian trade interests, diversify markets, and modernize trade rules to keep Canada's economy competitive and secure.

• Contribute to the effective management of Canada-U.S. trade and economic relations.
• Advise on and implement trade measures to respond to trading partners' actions that affect Canadian industries, while seeking to minimize economic impacts and promote competitiveness.
• Contribute to initiatives to diversify Canada's trading relationships through engagement with international partners, both at the World Trade Organization and through bilateral and regional engagements, including the negotiation and implementation of free trade agreements.
• Lead Canada's engagement in negotiations on multilateral export-credit disciplines at the OECD to strengthen a level playing field for Canadian exporters.

Finance Canada will strengthen international cooperation to promote economic stability, debt transparency and private capital mobilization.

• Continue to work with G7 and G20 members to address short- and long-term global economic challenges.
• Work with international counterparts to ensure multilateral development banks use resources efficiently by developing innovative instruments and mobilizing private capital, and to implement key reforms that promote economic stability and greener more inclusive economic growth.
• Provide policy leadership on global debt relief consistent with Canada's role in multilateral institutions.
• Strengthen Canada's voice in the IMF, G20, and Paris Club to advance debt sustainability and transparency across the international system.
• Continue to exercise leadership at the IMF to support its efforts to meet the needs of member countries.

The Department will work with international partners to advance shared economic-security priorities and coordinate global responses to crises

• Support Canada's international leadership, including targeted contributions to G7 and G20 Finance Tracks and delivery of policy priorities arising from Canada's 2025 G7 Presidency.
• Coordinate with allies, including G7 members, on support for Ukraine against Russia's illegal invasion and on other economic-security priorities.
• Continue to monitor and analyze international economic and policy developments, including geopolitical conflicts, to inform Canada's trade and fiscal policy.