Title: Federal Government Shifts Budget Cycle to Fall

OTTAWA — The federal government will now present its annual budget in the fall, marking a significant change from the traditional spring schedule. Finance Minister François-Philippe Champagne announced this new budgetary cycle on Monday. The shift aims to provide clearer fiscal planning for the private sector and other government levels.

Under the new schedule, budgets will be tabled in the fall for the upcoming fiscal year. Additionally, the fall economic update will be moved to the spring, and pre-budget consultations will take place during the summer months. Senior government officials explained that this change is designed to better align budget announcements with the construction season, allowing for earlier capital investments ahead of summer projects.

“In the old cycle, budgets didn’t allow projects to take full advantage of the construction season. A fall budget cycle changes that — giving builders and investors a real head start,” according to a background document from Finance Canada.

The government also plans to fulfill a campaign promise to separate capital investments from operating expenses in future budgets. Champagne outlined that capital investments will fall into six categories: capital transfers, corporate income tax incentives focused on capital, amortization of federal capital, private sector research and development, support for large-scale private sector capital investment, and measures to increase housing stock.

All other expenditures will be classified as day-to-day operating costs. This category includes significant government spending such as transfers to individuals, health and social services, and operational costs like salaries and benefits.

During the briefing, officials assured that the budget document will continue to provide comprehensive accounting information, including total spending, revenues, and the budget balance, which reflects the total deficit if applicable.