OTTAWA — Canada recorded a budget deficit of C$370 million ($266.57 million) for the first three months of its 2026/27 fiscal year, the finance ministry announced Friday. The deficit for April through June represented a sharp reduction from the C$6.28 billion deficit in the same quarter a year earlier.
Government expenditures increased slightly faster than revenues during the period. Program expenses rose 4.3 percent, with increases across most spending categories.
Public debt grew 6.1 percent during the first three months of the fiscal year, reflecting higher average effective interest rates on an expanded stock of marketable bonds and higher inflation adjustments on some bonds. Lower short-term interest rates on treasury bills partially offset the increase.
Year-to-date revenues grew 9.8 percent, driven largely by increases in personal income tax, corporate income tax and Goods and Services Tax revenues.
Canada posted a C$989 million surplus in June, compared with a C$3.63 billion surplus in June 2025.
