OTTAWA, Jan 30 (Reuters) – Canada has reported a budget deficit of C$26.39 billion ($19.51 billion) for the first eight months of the 2025/26 fiscal year. This increase is attributed to government spending outpacing revenue growth, according to a statement from the finance ministry.
In comparison, the deficit during the same timeframe last year was C$22.72 billion.
Program expenses rose by 3.1%, driven by increases across all major areas of expenditure. Public debt charges saw a slight uptick of 0.3%, reflecting a balance between lower short-term interest rates on treasury bills and higher rates on marketable bonds, the ministry explained.
Year-to-date revenues grew by 1.9%, primarily owing to higher income from customs duties as well as corporate and personal income taxes.
In terms of monthly figures, Canada recorded a deficit of C$8.02 billion in November, slightly less than the C$8.21 billion deficit from November 2024.
($1 = 1.3524 Canadian dollars)
(Reporting by Promit Mukherjee, editing by David Ljunggren)
((Reuters Ottawa bureau; david.ljunggren@tr.com, opens new tab))
Keywords: CANADA BUDGET/
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