Budget 2026 · Chapter 6 · pp. 287–312
A more efficient government
Making government cheaper and simpler: tax filing changes, AI and digital transformation in government, border infrastructure, public-service savings, Canada Post and tax compliance.
Chapter 6 in numbers
- Net impact, five years
- $3.09B
- Of which capital
- $413M
- Measures
- 31
- With a cost line
- 24
6.1 Simplifying the tax system
$1.39B over five years
- Making it easier for Canadians to manage their taxes$821MTax measureHouseholds
- Connecting more Canadians to federal benefits$334MProgram spendingHouseholds
- Making it easier to do business$236MTax measureBusinesses
Announced without a cost line
- Making it easier to manage retirement savingsno cost lineNo cost line
6.2 Making government work better for Canadians
$798M over five years
- Advancing artificial intelligence in government through Digital Transformation Canada$606MProgram spendingTraining & skillsAI & digitalPublic work
- Reinforcing Canada's border infrastructure$192MProgram spendingInfrastructure & transportPublic work
- Modernising government benefits and services$1MProgram spending
Announced without a cost line
- Reducing red tape and accelerating federal regulatory approvalsno cost lineNo cost lineBusinesses
- Strengthening Crown corporationsno cost lineNo cost line
- Drawing talent from across the economy into governmentno cost lineNo cost line
6.3 Lowering the costs of government
−$2.05B over five years
- Streamlining the delivery of federal financing$3MProgram spendingLoans, equity or financing
- Modernising Canada Post−$102MSavings or revenue
- Strengthening the effectiveness of fines and penalties−$186MSavings or revenue
- Renewing the public service - savings on CPP employer contribution costs−$305MSavings or revenue
- Renewing the public service - aligning operating budgets with ERI personnel savings−$400MSavings or revenue
- Strengthening tax compliance−$1.06BSavings or revenue
Announced without a cost line
- Update on ongoing horizontal reviewsno cost lineNo cost lineLoans, equity or financing
6.4 Getting more value from public assets
Announced without a cost line
- Generating more value from federal assetsno cost lineNo cost lineInvestment
- Consolidating responsibility for federally owned bridges and crossingsno cost lineNo cost lineInfrastructure & transportPublic work
Additional investments
$890M over five years
- Interest deductibility limits$555MTax measureHousingInvestmentEnergy & resources
- GST/HST health measures$199MTax measureHealth
- Supporting employees affected by workplace injuries$137MProgram spending
- Strengthening the Courts Administration Service (CAS)$58MProgram spending
- The Public Service Occupational Health Program$38MProgram spendingHealth
- Improving technical support for the My Service Canada Account$28MProgram spending
- Federal fuel excise tax licensing framework$20MTax measure
- Supporting the accountability and modernisation of the Royal Canadian Mounted Police (RCMP)$18MProgram spending
- Archiving the records of former Prime Minister Trudeau$12MProgram spending
- Supporting lieutenant governors$3MProgram spending
- Information sharing - pension administrators−$30MSavings or revenue
- Registered pension plans−$148MSavings or revenue
The chapter cost table
| Section | 2026-27 | 2027-28 | 2028-29 | 2029-30 | 2030-31 | Total |
|---|---|---|---|---|---|---|
| 6.1 Simplifying the tax system | 20 | 174 | 287 | 425 | 485 | 1,391 |
| 6.2 Making government work better for Canadians | 12 | 146 | 173 | 242 | 226 | 798 |
| 6.3 Lowering the costs of government | 11 | −375 | −470 | −571 | −649 | −2,053 |
| amounts provisioned in Budget 2025 for future reviews | — | 375 | 470 | 571 | 649 | 2,064 |
| 6.x Additional investments – A more efficient government | 255 | 320 | 114 | 101 | 101 | 890 |
| Net fiscal impact | 298 | 639 | 573 | 767 | 813 | 3,091 |
| Of which, capital investment | 2 | 23 | 87 | 126 | 175 | 413 |