Mark Carney and his Liberal government have brought down a distinctly Conservative-style budget. As always, there are winners and losers, but which departments gain and which are being cut shows a distinct change of emphasis from the past. And the fact that there are more cuts than increases also marks a break with the Liberals' free-spending past.
All in all, there are $31 billion in cuts and just $23 billion in new spending for 2026-7, so a pretty substantial net $8 billion cut in overall spending.
The biggest losers are the Canada Revenue Agency ($4.3 billion, or nearly 41% of its old budget), Department of Fisheries and Oceans ($4.3 billion, or nearly 70% of its budget), Department of Indigenous Services ($3.0 billion, or 11%), Department of Crown-Indigenous Relations and Northern Affairs ($2.6 billion, or 18%), Global Affairs ($2.1.billion, or 23%), and Canada Post ($2.0 billion, or 99%).
There are some huge surprises there. Wait for some significant push-back, although probably not from Conservatives. It's a brave (or foolish) man who cuts money for the Indigenous people these days, and "sunsetting" overseas programs smacks of Trumpism. And almost comletely cutting loose Canada Post suggests that they have completey given up on the Crown corporation, so don't expect any Christmas cards in the mail next December.
The main winners in the budget are the Department of Finance (with a whopping $8.5 billion increase, or nearly 6%% of its original budget), Department of Employment and Social Development ($5.7 billion, or 5.4%), Department of National Defence ($5.3 billion, or 12%), and Department of Housing Infrastructure and Communities ($1.4 billion of 15%).
Injections of cash into defence and housing align with recent rhetoric, and a shot in the arm of Employment and Social Development perhaps makes sense in these times of tariffs and layoffs. But what is the finance department going to do with an additional $8 billion? (A bit of research suggests that this includes accelerated investments to counter the effects of US tariffs, affordability measures like the Canada Groceries and Essentials Benefit, investment in Build Canada Strong projects, including housing, investment in a new financial crimes and anti-fraud agency, and financial support for built-in-Canada defence and infrastructure projects.)
No doubt all will become clearer in the coming days, but so far it seems like a bit of a head-scratcher of a budget. As a Liberal budget it is - that word again! - unprecedented. I can't help but think that some of this stuff will come back to bite them later.