Federal deficit hits $55.3 billion for 2025-26 fiscal year
The government posted a deficit 28% larger than the previous year, though the Finance Department cautioned these figures aren't final.
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The federal government's deficit for the 2025-26 fiscal year reached $55.28 billion, a significant jump from the $43.15 billion deficit a year earlier, according to the Finance Department's monthly fiscal monitor report.
The department cautioned that these figures are preliminary and don't represent the final result for the fiscal year, which will include additional end-of-year adjustments to be published in the public accounts.
Revenue for the period stretching from April 2025 to March 2026 totalled $500.02 billion, up from $494.81 billion in the same period a year earlier. Program expenses, excluding net actuarial losses, totalled $487.89 billion, up from $480.29 billion.
Public debt charges for the year amounted to $53.71 billion, compared with $53.65 billion a year earlier. Net actuarial losses totalled $13.70 billion compared with $4.02 billion a year earlier — a substantial increase that contributed to the larger overall deficit.
The widening deficit comes as Canada navigates economic slowdown. The government has faced mounting pressure to address fiscal spending as the economy contracts.