Canada's Budget Deficit Nearly Halves to C$5.36 Billion Over First Five Months of 2026/27

Canada recorded a C$5.36 billion ($3.84 billion) budget deficit for the first five months of the 2026/27 fiscal year, down sharply from C$11.07 billion in the same period a year earlier, the finance ministry said Friday. Revenues grew faster than expenses. Year-to-date revenues rose 7.1%, driven by higher personal income tax receipts and GST revenues. Program expenses climbed 4.7% on increased transfers for government programs and higher operating costs. Public debt rose 9.1%, largely reflecting higher average effective interest rates on a larger stock of marketable bonds. On a monthly basis, the deficit narrowed to C$233 million, compared with a C$3.28 billion deficit in August 2025. The exchange rate stood at $1 = 1.3959 Canadian dollars.