Canada Government Budget Surplus Shrinks in December

EthereumCraftsman · 2026-02-27T16:15:17+00:00

Canada recorded a budget surplus of CAD 0.2 billion in December 2025, down from CAD 1.0 billion in December 2024. Increased revenues from taxes were offset by rising expenses, while public debt charges decreased. The federal deficit for April to December 2025–26 rose to CAD 26.1 billion.

EthereumCraftsman

2026-02-27 16:15:17

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Canada’s government posted a budget surplus of CAD 0.2 billion in December 2025, compared with a surplus of CAD 1.0 billion in December 2024. This shift reflected a CAD 1.8 billion increase in revenues, driven by higher corporate and personal income tax revenues, while lower pollution pricing provided partial offsets. Program expenses, excluding net actuarial losses, rose by CAD 2.6 billion, reflecting higher direct program expenses, major transfers to provinces, and pollution pricing proceeds returned. Public debt charges fell CAD 0.2 billion as lower interest rates on treasury bills and lower CPI adjustments on Real Return Bonds outweighed higher effective interest rates on an increased stock of marketable bonds. For the April to December 2025–26 window, the federal deficit reached CAD 26.1 billion, up from CAD 21.7 billion in the same period a year earlier.

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