Key facts
- Canada's budget deficit for the first three months of the 2026/27 fiscal year was C$370 million.
- This represents a significant decrease from the C$6.28 billion deficit recorded in the same period of the previous fiscal year.
- Government revenues increased by 9.8%, largely due to higher income and GST tax revenues.
- Program expenses saw a 4.3% increase.
- Public debt charges rose by 6.1% due to higher interest rates on marketable bonds.
Canada's budget deficit for the first three months of the 2026/27 fiscal year has significantly shrunk to C$370 million, down from C$6.28 billion in the same period a year prior, according to the finance ministry.
This reduction was primarily driven by a 9.8% increase in year-to-date revenues, largely attributed to higher personal and corporate income tax revenues and GST revenues. Program expenses rose by 4.3%, reflecting increased spending across most categories. Public debt also increased by 6.1%, influenced by higher average interest rates on marketable bonds and inflation adjustments, partially offset by lower short-term interest rates on treasury bills.
On a monthly basis, Canada recorded a surplus of C$989 million in June 2026, a decrease from the C$3.63 billion surplus observed in June 2025.