Poilievre demands fuel tax relief and federal spending cuts ahead of Canada’s 2026 budget

Floyd Brenz., Philippine Canadian Inquirer
November 02, 2026

Photo Courtesy: The Canadian Press

Canadian Conservative Leader Pierre Poilievre is calling on Prime Minister Mark Carney to reduce federal spending and suspend fuel taxes as the government prepares to present its 2026 federal budget on November 5.

In a letter to Carney, Poilievre outlined several measures he wants the Liberal government to adopt, including eliminating federal taxes on diesel until Canada Day, temporarily suspending the goods and services tax  on fuel, and permanently scrapping the federal fuel standard tax.

He argued that the proposed tax relief would help ease the cost of living for Canadians, particularly as higher fuel expenses affect the prices of groceries and other everyday goods.

Poilievre also urged the government to reduce what he described as wasteful spending, including government bureaucracy and foreign aid expenditures. He further called for the cancellation of the ALTO high-speed rail project linking Toronto and Quebec City.

The Conservative leader also pressed Carney to meet his fiscal commitments by reducing the federal deficit and debt relative to the size of the economy.

His demands come as the Parliamentary Budget Officer projects a $63.3-billion federal deficit for the 2026-2027 fiscal year, down from its earlier estimate of $71.8 billion. However, the office expects the deficit to rise to $70.2 billion the following year.

Poilievre criticized the government’s spending levels and argued that Canadians continue to face mounting affordability pressures.

Meanwhile, Finance Minister François-Philippe Champagne has said the upcoming budget will outline the government’s plans to build a stronger, more resilient and more affordable Canada.

The budget, titled “Masters of Our Destiny: Budget 2026,” will be Carney’s second since taking office as Canada continues to navigate economic uncertainty, U.S. trade tensions and efforts to strengthen its domestic economy.