OTTAWA, Oct 30 (Reuters) - Canada recorded a substantially lower C$5.36 billion ($3.84 billion) budget deficit for the first five months of the 2026/27 fiscal year as government revenues grew faster than expenses, the finance ministry said on Friday.
By comparison, the deficit in the same period a year earlier had been C$11.07 billion, it said in a statement.
Year-to-date revenues grew by 7.1%, largely reflecting higher income from personal and higher GST revenues.
Program expenses rose 4.7%, driven by higher transfers for government programs and increased operating costs.
Public debt increased by 9.1% largely reflecting higher average effective interest rates on an increased stock of marketable bonds, the ministry said.
On a monthly basis, the deficit dropped sharply to C$233 million, compared to a C$3.28 billion deficit in August 2025.
($1 = 1.3959 Canadian dollars)
(Reporting by Promit Mukherjee, editing by David Ljunggren)
((Reuters Ottawa bureau; [email protected]))
Keywords: CANADA BUDGET/