The budget tabled by the federal government this month includes proposed increases to the Canada Book Fund and the Canada Council for the Arts, and a proposed income tax credit for creators.

The budget, tabled on Nov. 5 and titled “Masters of our destiny,” proposes to permanently increase the Canada Book Fund by $5 million annually, and to provide an additional $20 million to the fund over four years, beginning in 2027–28. The Association of Canadian Publishers notes that the increase will bring the annual budget of the Canada Book Fund to $43.4 million in 2027–28. The budget also calls for an increase of $20 million over three years to the Canada Council for the Arts.

In addition to those two financial commitments to the arts and books, the budget also calls for the creation of “a free national digital collection” that will “make it easier for Canadians to discover and borrow books by Canadian authors.” The proposed digital collection will launch in 2027–28 with more than 200 titles, and the federal government is proposing to provide $32.2 million in funding for the project over the next four years and $9.5 million in future years, to create an online collection of more than 2,000 titles with a capacity for as many as two million loans annually by 2031–32. “Funding will support licensing, an online lending platform, promotion, and outreach to help Canadian stories reach more readers,” the budget says.

The digital library seems to grow out of the Canadian National Heritage Digitization Strategy formulated by the government in 2025, based on consultations with and recommendations by the Royal Society of Canada, the Canadian Council of Archives, and the Council of Canadian Academies, which have warned of Canada “falling behind” digitally, and using the best practices of cultural heritage digitization as undertaken, among others, in the Netherlands, Sweden, and in the U.S. with the Digital Public Library of America.

In the budget, the government also says it intends to “consult with Canadians and the cultural sector” on a Canada Creative Credit, which is expected to take the form of a non-refundable personal income tax credit that would provide tax recognition on up to $45,000 “of annual qualifying net business income derived from original and creative artistic works.” Details about the Canada Creative Credit will be announced in the government’s 2027 Spring Economic Update.

The ACP applauded the increases to the Canada Book Fund and the Canada Council for the Arts, and said in a press release that they look forward to working with Library and Archives Canada on the proposed digital book collection “to structure a program that enhances the discoverability and affordability of books for all Canadians and builds Canadian digital publishing capacity, including collective work with eBOUND Canada and other partners.” The ACP noted that ensuring creators and publishers are fairly compensated for the inclusion of their books in this collection will be an important consideration of this project.

“These commitments recognize the essential role Canadian publishers play in our cultural and economic lives,” ACP president Lisa Quinn said in a press release. “A strong Canadian publishing industry is fundamental to our cultural sovereignty. It ensures that our stories are told, our voices are heard, our knowledge is shared, and our intellectual property remains in Canadian hands.”

The ACP stressed, however, that more investment in the Canadian publishing sector is required; this year’s budget marks the first time that the Canada Book Fund has seen a permanent increase since 2001, and inflation has reduced purchasing power by 72 per cent over that 25-year period.

Furthermore, the ACP noted that copyright reform remains an important facet of the economic picture, and that beyond funding, publishers and creators need to be able to receive fair payment for the use of their work, which includes “addressing uncompensated copying in education and the use of copyrighted books to train AI systems without rightsholders’ consent.”

For its part, the Writers’ Union of Canada welcomed the inclusion of the Canada Creative Credit in this year’s budget.

“This could be very good news indeed for Canada’s writers,” Kim Fahner, TWUC chair and Sudbury-based novelist and poet, said in a press release. “And it is welcome recognition of the value of cultural work to the country. Canada’s artists are the frontline workers for cultural sovereignty.”

The Writers’ Union noted, however, that this year’s budget fails to include a previously promised increase to the Public Lending Right program, which compensates Canadian authors, illustrators, and audiobook narrators for the free lending of their work through Canada’s public libraries.

Both organizations look forward to continuing to work with the government on issues that affect the long-term sustainability of Canadian writers and publishers.