Prime Minister Mark Carney is facing calls to slash taxes, rein in federal spending and reduce borrowing when his government delivers its 2026 budget on November 5.The Canadian Taxpayers Federation (CTF) says Ottawa must make government more affordable for Canadians as federal debt interest payments climb toward $60 billion annually and spending is projected to exceed last year's budget by $13.5 billion.The demands follow the finance minister's announcement in the House of Commons Tuesday confirming the date of the upcoming federal budget.“Budget 2026 needs to make government more affordable and that means cutting taxes, ending the borrowing spree and stopping overspending,” said CTF Federal Director Franco Terrazzano.“Canadians need tax cuts to afford life and compete, and the government needs to cut spending to stop the debt from ballooning.”In its pre-budget submission, the CTF identified three priorities for the Carney government: reducing taxes, lowering federal borrowing costs and cutting government expenditures.The organization is calling for the elimination of the industrial carbon tax, the removal of federal fuel regulations, permanent gasoline tax relief and an end to the automatic annual increases in federal alcohol excise taxes.The CTF argues these measures would help reduce costs for households and businesses while improving Canada's economic competitiveness.It pointed to a recent Tax Foundation report ranking Canada 28th among 38 industrialized countries for individual taxes and 17th for business taxes.Canada ranked behind the United States in both categories, according to the report.The federation says Ottawa must also address the growing cost of servicing the national debt.A recent Parliamentary Budget Officer (PBO) report identified debt interest charges as the federal government's fastest-growing expense.Those payments are projected to reach $59.3 billion this fiscal year, more than double the $24.5 billion recorded in 2021-22.That amounts to approximately $1,419 for every Canadian and more than $1 billion a week in federal debt interest payments..The PBO's latest Economic and Fiscal Outlook also projects federal spending will reach $602 billion this fiscal year.That is $13.5 billion higher than the $588.5 billion outlined in Budget 2025.The CTF says the increase demonstrates the need for tighter controls on government expenditures and a plan to reduce annual deficits.Its pre-budget submission identifies more than $60 billion in potential annual savings, which the organization argues could help Ottawa reduce borrowing and provide tax relief.The federation maintains that continued deficit spending is driving up debt servicing costs and leaving taxpayers responsible for increasingly expensive interest payments.“The federal government wastes money like crazy, but the biggest waste of money is the $1 billion a week going to pay interest on the debt,” Terrazzano said.The CTF is urging Carney to use the November budget to reverse the growth in federal expenditures rather than continue adding to the national debt.“Carney needs to put down the credit card, pick up scissors and cut spending in the upcoming budget because taxpayers can’t afford these debt interest charges,” Terrazzano said.
