Canada's Deficit Hits C$26.4 Billion in First Eight Months of 2025-26

OTTAWA — Canada's federal government reported a budget deficit of C$26.4 billion for the first eight months of the 2025-26 fiscal year, an increase from the C$22.7 billion shortfall recorded in the same period a year earlier, according to the Finance Department.

The figures, released Friday in the department's fiscal monitor, cover April through November 2025. Revenues for the period reached C$317.2 billion, a 1.9 percent rise from C$311.3 billion the previous year. This growth was driven primarily by higher customs import duties, stemming from countermeasures against U.S. tariffs, as well as increases in corporate and personal income tax collections.

On the spending side, program expenses excluding net actuarial losses totaled C$304 billion, up 3.1 percent from C$294.9 billion. The increase reflected broader rises across major categories, including direct program spending, transfers to individuals and transfers to provinces, territories and municipalities. Public debt charges stood at C$36.3 billion, a slight decrease from C$36.4 billion, attributed to lower short-term interest rates on treasury bills and reduced net interest on cross-currency swaps and other liabilities....