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Canada posted a $370 million budget deficit in the first quarter.
Economy
Canada reported a budget deficit of C$370 million ($266.57 million) for the first three months of the 2026/27 fiscal year,
the Finance Ministry announced on Friday. The deficit was significantly smaller than the C$6.28 billion recorded in the same period a year earlier.
Government spending grew slightly faster than revenue. Program spending increased by 4.3%, driven by higher spending across most lines.
Government debt increased by 6.1%, driven by higher average effective interest rates on the increased volume of marketable bonds, as well as higher inflation adjustments for a number of other bonds. This increase was partially offset by lower short-term interest rates on Treasury bills, the ministry noted.
Year-to-date revenue increased by 9.8%, primarily due to higher revenues from personal and corporate income taxes, as well as the Goods and Services Tax (GST).
In June alone, Canada recorded a budget surplus of C$989 million, compared to C$3.63 billion in June 2025.