Thank you, Mr. Chair.
I'm pleased to be here with my officials to discuss the 2026-27 main estimates.
The main estimates outline $502.8 billion in planned spending, including $230.4 billion in proposed voting spending. They include $14.7 billion of initiatives announced in budget 2025.
Mr. Chair, tabling budgets in the fall allows for more spending to be reflected in the main estimates and the departmental plans. This helps align the two documents more closely with the budget. The main estimates include reductions that are part of the comprehensive expenditure review and, importantly, Mr. Chair, they show how the government is investing in key priorities to keep our country strong and prosperous.
Mr. Chair, most of the proposed spending in the 2026-27 main estimates would go towards transfer payments. These transfer payments are vital because they help build a stronger and more resilient Canada. They support important priorities such as benefits for seniors, the Canada health transfer and infrastructure projects. They support national, provincial and territorial programs and provide funding for local communities, indigenous groups, non-profits and research institutions. That's why the government is seeking $300.5 billion in transfer payments, nearly 60% of the total of these estimates.
The main estimates also support activities and investments across the federal government. Less than 30% of the proposed spending, $148.6 billion, would be directed to operating capital expenses. About a third of this amount is focused on securing Canada's sovereignty by rebuilding, rearming and reinvesting in the Canadian Armed Forces. These main estimates include over $48 billion in voted spending to support the Department of National Defence. The investments would support modern equipment, training and co-operation with international partners, helping keep Canadians safe and contributing to global stability. Although Canada has met NATO's 2% defence spending target, our work does not stop here. We will continue investing in the Canadian Armed Forces to ensure that we remain strong, secure and prepared for the future as we build Canada strong.
Lastly, Mr. Chair, my department, the Treasury Board of Canada Secretariat, is seeking $11.8 billion in these main estimates. This will help us meet essential obligations covering public service insurance, addressing rising costs in the public service health care plan, supporting disability insurance programs and accounting for increased payroll taxes.
Mr. Chair, as I mentioned earlier, these estimates also include reductions from the comprehensive expenditure review. This exercise identified savings by eliminating underperforming, duplicated or altered activities, allowing resources to be redirected to higher priorities that strengthen the country.
For TBS, the department is reducing its 2026-27 operating budget by $28.9 million, and annual savings will reach $57.8 million by 2028-29.
Mr. Chair, these estimates show that the government is investing in what matters most to Canadians.
My officials and I would be happy to take your questions.