No, you are right.
When Parliament is dissolved, a special procedure called the Governor General's Special Warrants is used. The goal is to fund government operations only so that the operations can continue or emergency situations can be dealt with.
It's a convention; the idea is not to fund new initiatives. If ever that were the case, the Governor General could refuse to sign the warrants, which, in practical terms, basically never happens. In an election campaign, the public service and the government apparatus make sure that operations continue.