Mr. Speaker, I am participating in today's debate to speak about the government's plan to maintain fiscal stability and provide a bit more clarity on Canada's economy.
The government's fiscal plan remains rooted in fiscal responsibility. This is not for its own sake, but to create capacity and invest in long-term economic strength and greater self-reliance. Consistent with this approach, the recent spring economic update of 2026 is the government's next step in building a stronger, more independent and more resilient Canada. It advances the building of more affordable housing and houses. It talks about major infrastructure that transforms and connects our economy while bringing down costs to help Canadians get ahead.
It is absolutely important to give a clear and transparent account of Canada's economy and its performance in an increasingly uncertain world, and to not promote fear. We are advancing major projects that connect and transform our nation, supercharging our housing construction and forging new economic partnerships. We are acting decisively to protect our economic sovereignty and position Canada for greater long-term growth. It is a principled and pragmatic approach. However, some long-term payoffs will take time.
To ensure that Canadians have the support they need right now, the government is providing bridging supports. For over a year, Canada's government has been focused on making life more affordable. Nearly 22 million Canadians are keeping more of what they earn with the middle-income tax cut. First-time homebuyers are saving up to $50,000 with the removal or reduction of the goods and services tax on new homes. The removal of the consumer carbon price has lowered gas prices by 18¢ per litre. The government has temporarily suspended the federal fuel excise tax. Last week, more than 12 million Canadians began receiving hundreds of dollars more through the new Canada groceries and essentials benefit. These are important measures.
In a world of geopolitical instability, governments need to rethink how they respond to the headwinds. From a fiscal perspective, especially in light of these challenges, we are delivering up to $11.5 billion in improvements to our project deficit going forward in our budgetary balance. This strength carries into future years, providing the budgetary balance relative to that of budget 2025 by an average of $10.7 billion per year from 2026-27 to 2029-30 before those new measures. This fiscal room allows the government to improve affordability and raise the Canadian standard of living through targeted policy measures.
The recent budget marked a strategic shift in the government's management of public finances. It is focused on expanding federal capital spending to mobilize investments while maintaining those critical programs that so many Canadians rely on. With significant investments in infrastructure, innovation and industrial capabilities, budget 2025 set out a clear plan to build the strongest economy in the G7.
The government also remains committed to being disciplined. This includes the comprehensive expenditure review, which now totals over $60 billion in savings and revenues over the next five years. The focus is targeted, beginning with efforts to rein in spending on external management and other consulting services. These challenging actions are necessary. They have the objective of spending less so that we can invest more in Canadians.
Canadians are navigating a rapidly changing and increasingly fragmented world. Economic security, industrial policy and geopolitical competition are increasingly shaping investment, trade and financial decisions. The conflict in the Middle East, of course, has disrupted key shipping routes, and damaged energy infrastructure has pushed energy prices higher, underscoring the fragility of global supply chains and adding to an already elevated level of uncertainty.
Despite this environment, Canada's economy continued to expand, growing by 1.9% in 2025. Domestic activity remained solid, even with the elevated tariffs and the impacts they have on our trade tensions. North American supply chains withstood disruptions more effectively than expected, with the Canada-U.S.-Mexico Agreement, the CUSMA, protecting approximately 85% of Canadian goods exports from these recent U.S. measures.
Businesses and workers have shown remarkable resilience in the face of significant uncertainty. Contrary to the naysayers, firms continue to invest, diversify suppliers and expand into new markets. Canada continues to attract significant global capital, leading the G7 in per capita direct investment inflows. A Statistics Canada survey of planned capital expenditures for 2026 indicates that businesses plan to step up capital spending this year. Reflecting on Canadian adaptability, the International Monetary Fund, the IMF, expects Canada to post the second-fastest growth in the G7 over 2026 and 2027.
Labour market conditions have also remained resilient. Since 2024, Canada has added more jobs per capita than the U.S. In May alone, the Canadian economy added 88,000 jobs, which has already been mentioned a number of times today. These jobs are mainly in the private sector, and all of them are full-time. The unemployment rate has fallen to 6.6%. Wage growth has now outpaced inflation for more than three consecutive years, supporting continued gains in real incomes.
Overall, the Canadian economy has shown resilience in the face of significant trade tensions and geopolitical uncertainty, and most respected economists and experts agree.
Let me remind the hon. members in the House that even with all of the global challenges, Canada starts from a position of strength. Canada's net debt burden today is lower than any other G7 country's. It is even below the levels of those countries' prior to the pandemic. Canada also has one of the smallest deficits in the G7 as a share of its economy. This fiscal challenge gives the government the capacity and responsibility to act to build a stronger economy, make life more affordable, create high-paying jobs, take care of each other and determine our future.
Canada's fiscal position also stands well among 30 other advanced economies. We are one of only two G7 economies, alongside Germany, to maintain a AAA credit rating with most global credit rating agencies. This AAA rating supports investor confidence and keeps us borrowing at lower costs than would otherwise be possible.
We know some of the payoffs will take time. That is why our government is standing with Canadians through uncertain and rapidly changing times by acting responsibly to provide supports today and making smart, long-term investments that strengthen Canada's economy. This means creating the mechanisms to ensure that Canadians thrive today and tomorrow, supporting workers and young people, enhancing the housing sector, combatting financial crimes and investing in strong communities.
We need to be on the right track. All members of the House should be collaborating effectively to promote Canada, not creating fearmongering and not giving enough sway and support to the likes of those who are leveraging to downplay the Canadian economy and its strength and the unifying effect that we are seeing.
We will stand strong for Canadians, and Canadians will stand strong by continuing to do what they do well.