-- The Parliamentary Budget Office (PBO) Thursday said it examined the Canadian federal government's Expenditure Plan and Main Estimates for 2026-27, which supports the appropriation bill that seeks lawmakers' approval of $230.4 billion in budgetary authorities.
Parliament has already provided legislative authority for most of the planned spending ($272.4 billion) for the 2026-27 fiscal year through other pieces of legislation, the PBO noted.
Among highlights, PBO noted the Canada Health Transfer is set to increase by $2.7 billion (5%) to $57.4 billion in 2026-27; and Federal spending on Elderly Benefits is set to rise by $5.7 billion (6.9%) to a total of $88.8 billion in 2026-27. However, PBO said, after tabling of the Main Estimates, the government released its Spring Economic Update 2026, which now forecasts Elderly Benefits to cost 89.3 billion for 2026-27 (a lift of $6.9 billion or 7.6%).
In other highlights, the 2026-27 Main Estimates outline $53.7 billion in forecasted statutory authorities related to servicing public debt, which represents a $4.7 billion increase (9.5%) from the 2025-26 Estimates to date for the preceding year, and includes $48.6 billion for interest on unmatured debt and $5.1 billion for other interest costs.
PBO noted Main Estimates include $14.7 billion in funding for Budget 2025 measures. Also, initiatives related to Rebuilding, Rearming, and Reinvesting in the Canadian Armed Forces represent 71.1% of Budget 2025 proposed spending in these Estimates, including $9 billion to the Department of National Defence (DND) and $675.3 million to the Communications Security Establishment Canada (CES).