Ottawa seeks $22.1 billion in new spending authority for defence, child care and Indigenous services

The back of the Parliament Building in Ottawa taken before sunset. The Peace Tower is in the background and the Library is in the foreground.
The back of the Parliament Building in Ottawa taken before sunset. The Peace Tower is in the background and the Library is in the foreground.

Supplementary Estimates (B) also forecast $2.3 billion more in statutory spending, bringing planned 2026-27 budgetary expenditures to $538.3 billion

OTTAWA — NATIONAL POLITICS – The federal government is asking Parliament to approve $22.1 billion in additional spending, led by defence procurement, child care, Indigenous services and support for industries facing tariffs.

Treasury Board President Shafqat Ali tabled the Supplementary Estimates (B) for 2026-27 on Friday. The estimates are spending authorities, not a record of money already spent. Parliament must approve the voted portion through a supply bill, which the government says will be introduced in December.

The package shows $24.4 billion in incremental budgetary spending: $22.1 billion that requires a vote and a $2.3-billion increase in forecast spending already authorized by other laws. If approved, voted spending would rise 9.2 per cent from the amount in the Main Estimates and Supplementary Estimates (A).

Defence accounts for the largest departmental request

National Defence is seeking about $5.1 billion. Major items include $1.924 billion for the program icebreaker project and $1.563 billion for enhanced military satellite communications in the Arctic. The estimates also include about $375.5 million for Operation UNIFIER and $300 million in military aid to Ukraine.

Employment and Social Development Canada is seeking $3.2 billion, including $2.4 billion to address short-term funding gaps in the Canada-wide early learning and child-care system and $631.6 million for skilled-trades training and recruitment.

Crown-Indigenous Relations is seeking $2.8 billion, including $1.2 billion for the Federal Indian Boarding Homes settlement and $760.3 million for specific claims. Indigenous Services Canada is seeking $2.3 billion, including $734.5 million for health benefits, $600 million for education and $448 million for emergency management.

Other requests include $930.4 million for VIA Rail and $840.4 million for Health Canada, including $821.6 million for the Canadian Dental Care Plan. Seven organizations would share $841.2 million for a regional tariff-response initiative.

What the totals mean

The estimates bring planned 2026-27 federal budgetary spending to $538.3 billion: $263.7 billion in voted authorities and $274.6 billion in statutory spending. The statutory increase includes $1.7 billion for payments to provinces and territories to improve housing supply and $285.2 million for the Canada Infrastructure Bank.

Those totals are not the final cost of government for the year. Departments may spend up to their authorities; the Public Accounts later report actual spending.

Parliament can study and debate the requests before voting on the supply bill.

Source notes

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