Canada Budget Shortfall Narrows Sharply in August

2026-10-30 15:26 By Larissa Caser 1 min. read

Canada’s federal deficit narrowed sharply to C$223 million in August 2026, down from C$3.28 billion a year earlier, marking its smallest shortfall since June 2017.

Revenues rose 7.1% to C$40.07 billion, largely driven by higher income tax and GST receipts.

Program expenses, excluding net actuarial losses and gains, increased 3.1% to C$36.98 billion, mainly reflecting higher major transfers to individuals.

Public debt charges climbed 16.1% to C$5.12 billion, driven by an actuarial adjustment to pension and employee benefit obligations and higher interest on marketable bonds, partly offset by lower CPI adjustments on Real Return Bonds.

Meanwhile, the government recorded net actuarial gains of C$1.8 billion, compared with losses of C$0.7 billion a year earlier, reflecting updated valuations of pension and employee benefit plans.



News Stream
Canada Budget Shortfall Narrows Sharply in August
Canada’s federal deficit narrowed sharply to C$223 million in August 2026, down from C$3.28 billion a year earlier, marking its smallest shortfall since June 2017. Revenues rose 7.1% to C$40.07 billion, largely driven by higher income tax and GST receipts. Program expenses, excluding net actuarial losses and gains, increased 3.1% to C$36.98 billion, mainly reflecting higher major transfers to individuals. Public debt charges climbed 16.1% to C$5.12 billion, driven by an actuarial adjustment to pension and employee benefit obligations and higher interest on marketable bonds, partly offset by lower CPI adjustments on Real Return Bonds. Meanwhile, the government recorded net actuarial gains of C$1.8 billion, compared with losses of C$0.7 billion a year earlier, reflecting updated valuations of pension and employee benefit plans.
2026-10-30
Canada Budget Deficit Widens in July
Canada’s federal deficit widened to C$4.77 billion in July 2026 from C$1.51 billion a year earlier, as fiscal expenditures increased. Program expenses, excluding net actuarial losses, rose 5.1% to C$41.81 billion, largely due to higher direct program expenses and major transfers to persons, partly offset by lower pollution pricing proceeds returned to Canadians. Public debt charges also increased 7.4% to C$5.4 billion, reflecting higher average effective interest rates on a larger stock of marketable bonds. Net actuarial losses rose 23.9% to C$415 million. Meanwhile, revenues rose 7.4% to C$42.8 billion, largely reflecting higher personal income tax revenues, partly offset by lower customs import duties, energy tax revenues and corporate income tax revenues.
2026-09-25
Canada Budget Surplus Narrows in June
Canada’s federal surplus narrowed to C$1.0 billion in June 2026 from C$3.6 billion a year earlier, on higher program expenses and public debt charges and broadly stable revenues. Program expenses excluding net actuarial losses increased by C$2.1 billion, largely due to higher direct program spending, while public debt charges rose C$0.5 billion amid a larger stock of marketable bonds and higher CPI adjustments on Real Return Bonds. Net actuarial losses increased by C$0.1 billion. Revenues were up C$10 million to C$1.6 billion, as higher employment insurance premiums and other revenues offset a C$1.6 billion decline in tax revenues, mainly due to lower corporate income tax receipts.
2026-08-28