Canada's budget deficit over first five months of 2026/27 almost halves to C$5.36 billion
TLT•Canada recorded a C$5.36 billion budget deficit in the first five months of fiscal 2026/27, down from C$11.07 billion a year earlier. Revenue grew 7.1%, while program expenses rose 4.7%.
1. Deficit narrows
Canada’s deficit for the first five months of fiscal 2026/27 fell to C$5.36 billion from C$11.07 billion in the same period a year earlier. Revenues grew 7.1%, largely reflecting higher personal income and GST revenues, while program expenses rose 4.7% on higher program transfers and operating costs.
2. Debt and monthly balance
Public debt increased 9.1%, largely reflecting higher average effective interest rates on a larger stock of marketable bonds. In the latest month, the deficit was C$233 million, compared with C$3.28 billion in August 2025.
