Spring Economic Statement: April 28, 2026

April 15, 2026: Ottawa, Ontario - Yesterday, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced that he will table the Spring Economic Update 2026 on Tuesday, April 28, 2026. In the Spring Economic Update 2026, the government will provide an update on its plan to build the strongest economy in the G7, and outline additional actions taken to drive prosperity, play to Canada’s strengths, and support Canadians where and when they need it most.

Although Canada's economy has weathered recent global mayhem relatively well, Canadians aren't home free. If we are to sustain our standard of living, says the Organization for Economic Cooperation and Development (OECD) in its latest Economic Survey of Canada, Canada has to increase productivity. The report calls productivity growth Canada's "main long-term challenge.î Over the past few decades, the OECD notes, the amount of labour, capital and natural resources needed to produce a unit of GDP has remained constant. Indeed, since 2002, Canada's overall productivity has fallen, while U.S productivity has grown by about 30%. The OECD makes two recommendations: first, more support for business investment in research and development (R&D) and, second, improve quality and access to tertiary education to maintain the supply of highly skilled workers. The report notes Canada's business sector devotes only about 1% of GDP to R&D, compared with 2% in the U.S. and more than 2.5% in Japan, Korea and some of the Nordic countries. Says Peter Jarrett, one of the authors of the study: "Canada is blessed with abundant natural resources. But it needs to do more to develop other sectors of the economy if it is to maintain a high level of employment and an equitable distribution of the fruits of growth.î The OECD also takes note of Canada's rising real estate prices and high household indebtedness. There is certainly no escaping Canadians growing debt burden. In its June issue of Financial System Review,  the Bank of Canada rated overextended Canadians as the country's greatest domestic risk. "The risks associated with high levels of household debt and a potential corrections in the housing market are elevated and have not diminished since December,î the Review notes. Bank of Montreal economist Sal Guatieri brought that home yet again in BMO's June 25 Focus: ï household credit market debt rose to a new high of 152% of disposable income in the first quarter of 2012. Household borrowing slowed slightly, but so did income growth, nudging the ratio higher; ï the proportion of "vulnerableî households ó those with debt service ratios of 40% or more of income ó is slightly more than 6%, pushing it over the norm for the past decade; ï the proportion of debt held by "vulnerableî households is slightly more than 11%, also mildly higher than normal. Clearly, Canadians shouldnít be too complacent and ignore the caution signs along the road to global recovery. The time to invest in our future is now.   Additional Educational Resources: Financial Recovery in a Fragile World and EverGreen Explanatory Notes.  

Do I have enough money to retire? For many baby boomers, that is the burning question.  Projecting after-tax cash flows over an average 15-year retirement period can be a daunting task.  To ease the strain, the Knowledge Bureau has two retirement-planning calculators in its Toolkit ó Tax-Efficient Retirement Income Calculator and the CPP Income Calculator Most retirees have several sources of income: public pensions ó Old Age Security (OAS) and Canada Pension Plan (CPP) ó as well as private pension income from registered pension plans (RPPs), RRSPs/RRIFs, or possibly Deferred Profit-Sharing Plans (DPSP). They may also have foreign-source pensions, not to mention investment income. Income from some sources will increase over time through indexation while income from other sources will decrease as the capital is diminished. And there's the income tax component to take into account. The Knowledge Bureauís calculators are designed to deal with these issues. The Tax-Efficient Retirement Income Calculator, for example, allows you to look at the various income streams over the entire retirement period. By projecting how each source of income will vary over time and by adjusting for the cumulative effects of inflation and taxation, the calculator paints a picture of the retiree's income stream during retirement. Then, by adding the projected monthly expenses, you can identify excesses and shortfalls and adjust your plan accordingly. Another burning question for those approaching age 60 is when to begin receiving CPP benefits.  The days of having to stop work in order to get CPP are behind us.  However, if you take your CPP and continue to earn pensionable income, you will have to continue contributing ó at least until age 65. The factors to consider when deciding when to start taking CPP include: to how much CPP benefits are you entitled? are you receiving a CPP survivor pension? will you keep earning income and, if so, how much? how long will you live? The CPP Income Calculator will take all of these factors into account and project your CPP benefit for each option available, from age 60 to age 70. The Tax-Efficient Retirement Income Calculator and the CPP Income Calculator are just two of the calculators available in the Knowledge Bureau Toolkit.  If you're not already using them, register now for a free trial.

Midnight, June 15 is the deadline for individuals who own an unincorporated small business to file their income taxes. It is also the day that those who pay their income taxes on the quarterly instalment plan must make their second-quarter payment. Missing either of those deadlines could prove costly. Filing the personal return for proprietorships. The tax-filing deadline is midnight April 30 for most taxpayers. The exception is unincorporated small-business owners and their spouses; for them it is June 15. But, and this is the catch, if you owe taxes when you do file, the interest begins accruing as of May 1. This is not inexpensive: interest costs are calculated at the prescribed rate, which is determined quarterly (currently 1%) plus 4% ó for a total of 5% ó compounding daily. If you miss filing a return by June 15, the consequences are even harder on the pocketbook. When you fail to file, you set yourself up for late-filing penalties: 1. First failure to file a return on time: the penalty is 5% of unpaid taxes plus 1% a month up to a maximum of 12 months from the filing due date. 2. Subsequent failure to file on time within a three-year period warrants a penalty of 10% of unpaid taxes plus 2% a month to a maximum of 20 months from filing due date. Further, on assessment of your taxes, the Canada Revenue Agency (CRA) can apply a gross negligence penalty if there has been an omission of information, including failure to file a return. This amounts to 50% of taxes payable. So, filing an accurate return is important; take the time to disclose all sources of income and back up your income and your expenditures with orderly files in soft and/or hard copy. If the CRA suspects you are willfully evading taxes and the court agrees, the penalties are stiffer still. (Note the fate of the Desautels above.) Tax evasion is the act of making false or deceptive statements in order to reduce or eliminate taxes or falsely claim refundable credits. Also, you can be guilty of this crime if you participate in destroying, altering, mutilating or otherwise disposing of records or books of account. If convicted of tax evasion, besides paying the taxes, you are liable for a fine of not less than 50% and not more than double the amount of the taxes that were sought to be evaded, and/or imprisonment for a term not exceeding two years. Quarterly instalments. If you remit your income taxes quarterly, you must file your second instalment by midnight, June 15, to avoid interest penalties on the prepayment of your 2012 taxes due. The CRA usually sends a billing notice as a reminder. If your income picture will change in 2012 ó especially if it decreases ó you may not be required to pay the amount on your billing notice. Check with your tax advisor. You are required to remit taxes quarterly in 2012 if your net taxes owing are $3,000 or more in 2011 or in either 2010 or 2009 ó except in Quebec. The limit for Quebec residents is $1,800, not $3,000. Farmers and fishers pay instalments only once on net self-employment income based on two-thirds of net income as of Dec. 31. It's Your Money. Your Life. While interest and late-filing penalties may be avoided under the Taxpayer Relief Provisions in hardship cases ó such as illness, death of a family member or other factors beyond your control ó there is generally no leniency for tax delinquents or cheats. Do file on time to avoid expensive interest and penalties and reward yourself by investing the savings. Evelyn Jacks is president of Knowledge Bureau and founder of the Distinguished Advisor Conference, now in its ninth year. This annual event attracts hundreds of top advisors from across Canada to discuss recent trends in economics, tax, investment, retirement and estate planning.     Additional Educational Resources: Distinguished Advisors Conference and Debt and Cash Flow Management self-study course.  

Growth as a professional in Canada is increasingly dependent on collaborative planning with a culture unfamiliar to you, including new Canadians and established communities, many of whom often face unusual challenges. At this year's Distinguished Advisor Conference (DAC)  Nov. 11-14, award-winning Cree speaker Madeleine Dion Stout will speak on "Miskwē˝ihtamowin: Planning for excellence with indigenous communities.î Raised on the Kehewin First Nation and a nurse by training, Dion Stout has been recognized for her outstanding contribution to health reform, health education and the development of public policy toward an improved health-care system for all Canadians, with a particular focus on First Nations, Inuit and Métis. She has received the Assiniwikamik Award from the Aboriginal Nurses Association of Canada, a Distinguished Alumnus Award from the University of Lethbridge and Honorary Doctor of Laws from the University of British Columbia and the University of Ottawa. In March 2010 she received the National Aboriginal Achievement Award in the health category. "Wellnessî personally and culturally is the issue for Dion Stout. Dion Stout will address DAC attendees on Nov. 13, Day 2 of the annual conference, held this year in Naples, Florida. (To review the agenda, click here). The theme of this year's DAC is "Navigation: Charting a new courseî and Dion Stout joins a lineup of knowledgeable and respected speakers ó including Patricia Croft, Gordon Pape, Diana Juricevic and Richard Croft ó who tackle the topic of planning in today's uncertain environment. "This is particularly important in Canada as the indigenous community faces unique opportunities and challenges,î says Evelyn Jacks, DAC founder and president of Knowledge Bureau. "A better understanding of the contributions these communities can make in planning for health promotion and wealth creation adds value when working with this client group.î To take advantage of early bird prices, register before June 30 for DAC.

An Alida, Sask., couple have learned the hard way that the Canada Revenue Agency (CRA) does not tolerate tax evasion and does not shy away from seeking onerous penalties. On May 14, the Estevan Provincial Court meted out hefty fines and jail time to Alida residents Norman Luke Desautels and Dorothy-Anne Denise Desautels for tax evasion. Norman Desautels was sentenced to one year in jail and fined $105,922.47. His wife, Dorothy-Anne, was sentenced to six months in jail and fined $99,548.80. The couple was given five years to pay the fines, which represent 100% of the taxes that the Desautels sought to evade. As well, the Desautels have to pay the outstanding taxes and the benefits that they received. On Feb. 27, 2012, the Desautels were found guilty of failing to report income from their farm, surface leases and a family trust. Norman also failed to report income from his oil-well servicing business. Nor did the couple report income of $494,671.36, earned from 2004 to 2008; they also evaded personal income taxes of $90,679.80. In doing so, Dorothy-Anne received $8,869 in Canada child tax benefits to which she was not entitled. Norman collected GST from his customers that he did not remit, totaling $6,373.67 for the period 2005 to 2008. Don't confuse tax avoidance with tax evasion. As the Desautels discovered, tax evasion ó which involves the non-declaration or falsification of tax-related information ó is illegal. Tax avoidance, which involves using specific transactions to lower the amount of taxes payable as a result of a technical reading and application of the law, is not; in some cases, however, the courts may later deny the tax benefit. If you are concerned about your own tax-filing liabilities, remember the CRA's Voluntary Disclosures Program. The CRA allows taxpayers to correct inaccurate or incomplete tax-related information, or to disclose information they omitted to report to the Agency, in some cases without facing prosecution or fines.   Additional Educational Resources: Introduction to Personal Tax Preparation Services and EverGreen Explanatory Notes.  

Canada's number one commodity export, crude oil, has been losing value steadily over the past month. Weak economic growth in the U.S. and China is partly to blame, as is the continuing financial mayhem in Europe. Crude dropped to less than US$82 a barrel on June 4, from US $106 a barrel a month earlier. At the same time, the price of one of Canada's favourite imports ó coffee ó has been climbing steadily. And there is no relief in sight ó for either commodity. Certainly there has been pressure on the U.S. central bank, the Federal Reserve Board, to unveil a stimulus plan that would get the U.S. economy growing ó and Americans buying Canadian oil. But those pleas have fallen on deaf ears; Fed Chairman Ben Bernanke told Congress June 7 that, as yet, no plans have been made. At the same time, Canada's obsession with the dark drink has intensified. Canada's consumption per capita now ranks second in the world, behind only Italy, a large leap from ninth only five years ago. A survey conducted for McDonald's Restaurants in late 2010 by Ipsos Reid found that almost 90% of Canadians drink at least one cup of coffee a day, with most indulging several times daily. In fact, the average Canadian drinks 3.2 cups a day. This Canadian obsession is getting expensive, however, as coffee prices climb in the slowing global economy. The highly sought-after Arabica beans, which can only be grown in altitudes above 610 meters, have soared in price ó until recently, that is, when the traditionally less-favoured Robusta beans have overtaken them. In the past year, Arabica shipments have dropped by 8%, while Robusta exports are up 10.4% in the same time period.   It seems the price curve of these two beans has been inverting. According to Bloomberg LLP data, coffee is both the best- and worst-performing commodity investment so far in 2012. The spot price for the Arabica beans recently fell to US$1.75 a pound, or 77% of what it was at the start 2012. Traditionally, the floor price for these beans has been about US$2 a pound, with the price hitting an all-time high of US$3 a pound in April 2011. Robusta beans, meanwhile, are priced at US$1.17 a pound, 22% more expensive than they were at the beginning of this year. As a result, cost-conscious Canadians have begun forsaking their $5 lattes and reverting to their traditional cup of joe. They have even begun brewing their own coffee at home to save money. "People decided it was costing too much to gas up their bodies,î commodities watcher John Stephenson, a portfolio manager with First Asset Investment Management Inc. in Toronto, told the CBC recently. This is good news for McDonald's and Tim Horton's, those purveyors of lower-priced brews, but bad news for the numerous, independent coffee shops that have popped up throughout Canada during this period of crazy coffee consumption. These small-time players now face penny-pinching Canadians who will either settle for a regular cup of coffee, or simply brew at home. To add to this, McDonald's and Tim Horton's are now pricing their specialty coffee drinks for less than most independent shops. So, the future of the small Canadian coffee shop may be in jeopardy. John Rufino, who owns Classic Coffee, a roastery that sells its beans to several hundred shops around Toronto, has taken note of the crowded marketplace. When a new shop opens within a certain distance of existing customers, Rufino refuses to sell to it. "I don't feel its right when they have to compete with the same product,î Rufino told Toronto newspaper, The Grid, recently. "If there's a certain amount of business within a block, and two or three cafés share it, it doesn't make sense. They work 12 hours a day and they won't make it.î Canadians will be paying close attention to these commodity prices in future months, as they strategize the best route to weather this global financial stalemate. Greer Jacks is updating jurisprudence in the EverGreen Explanatory Notes, an online research library of assistance to tax and financial professionals in working with their clients.