Canada Government Budget Deficit Shrinks Marginally in November

Canada’s government posted a budget deficit of CAD 8.0 billion in November 2025, compared with a deficit of CAD 8.2 billion in November 2024. This shift reflected a CAD 0.4 billion decrease in revenues, driven by lower pollution pricing and GST, while income tax provided partial offsets. Program expenses, excluding net actuarial losses, fell by CAD 1.1 billion, reflecting lower pollution pricing proceeds returned and lower direct program expenses, partly offset by higher major transfers to persons and provinces. Public debt charges rose CAD 0.4 billion as higher CPI adjustments on Real Return Bonds and higher average interest rates on marketable bonds outweighed lower rates on treasury bills. For the April to November 2025–26 window, the federal deficit reached CAD 26.4 billion, up from CAD 22.7 billion in the same period a year earlier.

Canada’s government posted a budget deficit of CAD 5.0 billion in September 2025, compared with a deficit of CAD 3.2 billion in September 2024. This shift largely reflected a CAD 0.9 billion (2.5%) increase in revenues, driven by higher corporate and personal income tax and customs import duties, while pollution pricing fell by CAD 0.9 billion following the cessation of the federal fuel charge. Program expenses, excluding net actuarial losses and gains, rose by CAD 1.6 billion (4.6%), reflecting higher direct program expenses, major transfers to persons, and transfers to provinces, territories, and municipalities. Public debt charges fell CAD 0.4 billion or 8.3% as lower rates on treasury bills and reduced interest on pension obligations outweighed higher average rates on a larger stock of marketable bonds. For the April to September 2025–26 window the federal deficit reached CAD 16.1 billion, up from CAD 13.0 billion in the same period a year earlier.

Canada’s government posted a budget deficit of CAD 3.28 billion in August 2025, compared with a deficit of CAD 2.5 billion in August 2024. This shift largely reflected a CAD 2.3 billion (6.5%) increase in revenues, driven by higher corporate and personal income tax and customs import duties, while pollution pricing fell by CAD 0.9 billion following the cessation of the federal fuel charge. Program expenses, excluding net actuarial losses, rose by CAD 3.0 billion (9.1%), reflecting higher direct program expenses, major transfers to persons, and transfers to provinces, territories, and municipalities. Public debt charges fell by CAD 0.1 billion (1.5%) as lower interest rates on treasury bills and reduced net interest on cross-currency swaps were largely offset by higher average effective rates on an increased stock of marketable bonds; for the April–August 2025–26 period, the federal budget deficit stood at CAD 11.1 billion, compared to CAD 9.8 billion in the same period of 2024–25.