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Canada's Budget Deficit Widens to C$26.14 Billion
28 Feb
Summary
- Canada's budget deficit reached C$26.14 billion in the first nine months.
- Government expenditures rose faster than revenues during the period.
- December 2025 saw a small surplus of C$245 million.
Canada reported a budget deficit of C$26.14 billion for the initial nine months of the 2025/26 fiscal year. This figure represents an increase from the C$21.72 billion deficit recorded in the same period last year.
Government expenditures climbed by 3.5%, driven by increases across major spending categories. Concurrently, revenues saw a 2.2% rise, primarily due to higher income from custom import duties and corporate and personal taxes.
Public debt charges experienced a slight decrease of 0.6%, attributed to lower interest rates. In December 2025, Canada registered a small surplus of C$245 million, contrasting with the C$1 billion surplus seen in December 2024.
