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Appropriation Act No. 2, 2026-27

An Act for granting to His Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2027

Summary

  • Authorizes up to $144.032 billion from the Consolidated Revenue Fund to cover federal departments' and agencies' operating, capital, grants, and contributions for 2026–27 not otherwise provided for.
  • Allocates $140.396 billion in Schedule 1 across core organizations (defence, health, housing/infrastructure, research/innovation, trade, Indigenous services, security, etc.) and $3.636 billion in Schedule 2 (multi-year authority largely for the Canada Revenue Agency) usable through March 31, 2028, with lapse rules.
  • Requires each item to be spent only for the specified purposes; provisions are deemed effective April 1, 2026, and allow accounting adjustments to Public Accounts post year-end.
  • Includes Treasury Board votes for government contingencies, public service insurance, operating and capital budget carry-forwards, and defence/security initiatives, plus authorities to reuse certain repayments.
  • Establishes numerous revenue-spending authorities for departments (e.g., cost recovery/internal support services) and embeds multi-year commitment authorities (notably for National Defence).

Builder Assessment

Vote No

While this supply bill sustains critical programs and funds trade, science, infrastructure, and security, it lacks the performance, efficiency, and regulatory reforms needed to convert spending into measurable prosperity gains. Given the scale of appropriations without clear cost-containment or outcome guarantees, it risks perpetuating bureaucratic inertia and fiscal pressure more than delivering broad-based growth.

  • Tie major envelopes to clear, published outcome metrics (productivity, export volumes, approval timelines) with quarterly dashboards.
  • Condition funding for housing, infrastructure, and resource programs on streamlined permits, strict service standards, and digital-by-default delivery—without compromising safety and security.
  • Set operating-cost containment targets, mandate program reviews and sunsets, and consolidate duplicative functions across departments and agencies.
  • Reallocate from low-impact grants to trade-enabling infrastructure, supply chains, and critical minerals projects; accelerate defence procurement for faster, safer capability delivery.
  • Tighten Treasury Board contingency criteria, cap carry-forwards, and recapture lapses to reduce slippage and improve discipline.
  • Pair future appropriations with a pro-growth tax package in separate legislation to reward work, investment, and innovation.

Question Period Cards

This appropriation pours billions into industry, research councils, and trade promotion—what concrete productivity and export targets will the government commit to and report against quarterly to prove Canadians are getting results for this spend?

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The bill sets aside $1 billion for Government Contingencies and $1 billion for Defence and Security Initiatives, alongside large carry-forward authorities—what guardrails, public reporting, and value-for-money tests will ensure these funds deliver faster, safer outcomes, especially in defence procurement, rather than fueling overruns?

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With $4.8 billion for the Canada Revenue Agency under Schedule 2, what specific service standards, red-tape reductions for businesses and workers, and audit fairness safeguards will be tied to this funding, and how will performance be independently verified?

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Principles Analysis

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Canada should aim to be the world's most prosperous country.

Enables broad government operations and programs that can support prosperity, but it provides no structural growth strategy or measurable prosperity targets.

✗

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

Expands/maintains extensive program spending without streamlining or regulatory simplification; risks entrenching bureaucratic inertia.

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Drive national productivity and global competitiveness.

Funds R&D, transportation, and trade work that could lift productivity, but lacks performance conditions, timelines, or outcome metrics to ensure competitiveness gains.

✓

Grow exports of Canadian products and resources.

Provides material funding to Global Affairs for trade promotion, the Canadian Commercial Corporation, Invest in Canada, and trade-enabling transportation—directly supportive of export growth.

✓

Encourage investment, innovation, and resource development.

Allocations to Industry, NRCan, NRC, NSERC, CSA and regional development agencies support innovation programs and resource development capacity.

✗

Deliver better public services at lower cost (government efficiency).

Authorizes large spending, contingencies, and carry-forwards with no explicit cost-saving targets, service standards, or consolidation mandates to deliver lower-cost services.

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Reform taxes to incentivize work, risk-taking, and innovation.

Contains no tax measures; fiscal implications for taxes are indirect and unspecified.

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Focus on large-scale prosperity, not incrementalism.

A routine supply bill that sustains programs rather than a transformative, results-driven prosperity agenda.

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C-32

PartyPresident of the Treasury Board
StatusAt second reading in the Senate
Last updatedN/A
TopicsEconomics, Healthcare, Indigenous Affairs, National Security, Infrastructure, Housing and Urban Development, Technology and Innovation, Labor and Employment, Immigration, Criminal Justice, Social Welfare, Foreign Affairs, Social Issues
Parliament45