Canada Reports $5.36 Billion Deficit for Early Fiscal Year

The Government of Canada recorded a $5.36 billion deficit for the first five months of the 2026-27 fiscal year, spanning April to August. This figure marks a substantial improvement over the $11.07 billion deficit reported during the same period in the previous year.

According to a monthly fiscal monitor report from the Department of Finance Canada, total revenue reached $215.54 billion. This growth was driven by higher personal income tax, GST, and other revenues, although these gains were partially offset by declines in customs import duties and energy tax revenues.

Program expenses, excluding net actuarial losses, rose to $195.95 billion, with the increase attributed to major transfers to individuals and higher direct program costs. Public debt charges also climbed, reaching $25.10 billion compared to $23.01 billion a year earlier.