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OTTAWA — The federal government tabled its spring economic update on Tuesday, projecting a $66.9 billion deficit for the fiscal year which ended on March 31.
Here are some of the highlights:
Reducing spending on federal consulting
The government says it will reduce spending on external management and other consulting by 20 per cent over the next three years.
The update document says the government spent about $5 billion on management and other consulting in 2024-25, while spending on all professional and special services hit $23.1 billion.
Other spending on consulting includes training and IT consulting, while professional services spending can include anything from design services to legal advice.
Spending on federal consultants has remained high, despite the previous Liberal government promising for years to reduce it. The issue has been raised by several federal unions.
The document says reducing spending on consulting will lead to savings of $450 million in 2027-28, and $900 million annually from 2028-29 onward.
Extending EI support for seasonal workers
In 2018, the government introduced temporary rules to provide up to five additional weeks of employment insurance, for a maximum of 45 weeks, to seasonal workers in 13 regions across Canada. They include Prince Edward Island, Gaspésie–Îles-de-la-Madeleine and Yukon.
The support was set to expire in October 2026 and the government now says it plans to extend the measures until October 2028.
The economic update says this will cost about $356.2 million over five years, starting in 2026-27.
Getting help to clear the backlog of air travel complaints
The economic update says the government plans to clear the backlog of air travel complaints by using a neutral, third-party dispute resolution organization.
This plan, it says, is based on the models used in the United Kingdom and the European Union.
The government also says it intends to develop a “simpler and more effective” regulatory regime, so rules are clearer and passengers are more quickly compensated.
Protecting whales
The document says the government recognizes the potential for increased marine traffic on the West Coast as Canada diversifies its trade.
The government is proposing to provide more than $160 million over five years, starting in 2026-27, to protect Canada’s whales and their habitat.
The government is also proposing to provide more than $91 million over five years, starting in 2026-27, and $16.5 million ongoing to implement a regional noise monitoring and management program and to address other threats to endangered killer whales.
Addressing food insecurity
The document says the federal government is taking steps to increase food security and is amending the Canadian Food Inspection Agency Act and the Pest Control Products Act to “include consideration of food security and cost of food.”
The document offers few details but says the mandates of the Canadian Food Inspection Agency and the Pest Management Regulatory Agency would be updated.
The document says the rising cost of food places “significant strain” on households. It says more information on the government’s national food security strategy will be released in the coming months.
Improving access to disability tax credit
The federal government says it wants to improve Canadians’ access to the disability tax credit.
In the economic update, the government says it plans to streamline the application process for people with certain long-lasting medical conditions. It also plans to expand the list of medical practitioners who can certify eligibility for the tax credit.
The document says the changes are expected to provide $345 million in tax relief over six years, and $86 million per year ongoing, starting in 2025-26.
Considering extending journalism tax credit to broadcasters
The economic statement says the government plans to consult Canadians and stakeholders on extending the Canadian Journalism Labour Tax Credit to audio and audiovisual news production.
It says broadcast journalism is “a key part of our community fabric” and the government is committed to supporting fact-based, local journalism.
It says more details on the consultation process will be released on the Department of Finance website.
Funding inquiries into global imports of goods
The economic update proposes $5 million for the Canadian International Trade Tribunal to conduct safeguard inquiries into imports of certain wood products and of canned and frozen vegetables.
Earlier this month, Finance Minister François-Philippe Champagne said the government had directed the Canadian International Trade Tribunal to launch an inquiry into global imports of wood cabinets and vanities, hardwood flooring and storage furniture.
Canadian wood manufacturers have welcomed a trade inquiry into wood imports but say the investigation needs to be followed by immediate provisional tariffs on foreign-made goods entering the country.
Last month, the federal government launched a trade inquiry on global imports of frozen and canned vegetables. A statement said the tribunal is tasked with considering the impact on food affordability and food security for Canadian households.
This report by The Canadian Press was first published April 28, 2026.
Catherine Morrison, The Canadian Press
