Canada's budget deficit over first four months of 2026/27 falls to C$5.14 billion
EWC•Canada recorded a C$5.14 billion budget deficit in the first four months of fiscal 2026/27, down from C$7.79 billion a year earlier. Revenues rose 7.4%, while expenses increased 5.1%.
1. Four-month deficit falls
Canada's budget deficit narrowed to C$5.14 billion in the first four months of fiscal 2026/27, compared with C$7.79 billion in the same period a year earlier, the finance ministry said. Revenues grew 7.4%, largely reflecting higher personal and corporate income tax receipts, while expenses rose 5.1%, driven by Old Age Security transfers, operating costs and other transfer payments.
2. July deficit widens
Public debt charges increased 7.4%, largely reflecting higher average effective interest rates on a larger stock of marketable bonds. In July, the deficit increased to C$4.77 billion from C$1.51 billion in July 2025.
