Canada’s Five-Month Deficit Nearly Halves to C$5.36B

Canada’s federal budget deficit narrowed to C$5.36 billion in the first five months of fiscal 2026–27, less than half the C$11.07 billion shortfall recorded a year earlier. Revenue rose 7.1%, supported by higher personal income tax and GST receipts, while program expenses increased at a slower pace, reflecting higher transfers and operating costs. The government also reported higher public debt charges, while net actuarial results improved compared with the prior year. In August, the monthly deficit was sharply lower than a year earlier.