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Federal government reports deficit of $26.1B for its April-to-December period

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OTTAWA - The federal government posted a budgetary deficit of $26.14 billion for the April-to-December period of its 2025-26 fiscal year.

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OTTAWA – The federal government posted a budgetary deficit of $26.14 billion for the April-to-December period of its 2025-26 fiscal year.

In its monthly fiscal monitor, the Finance Department says the result compared to with deficit of $21.72 billion reported for the same period a year earlier.

The result came as revenue totalled $363.36 billion for the nine-month period, up from $355.62 billion a year earlier, reflecting increases in customs import duties due to the countermeasures imposed in response to U.S. tariffs, and corporate and personal income tax revenues. 

The Peace Tower of Parliament Hill is pictured in Ottawa, Tuesday, June 4, 2024. THE CANADIAN PRESS/Sean Kilpatrick
The Peace Tower of Parliament Hill is pictured in Ottawa, Tuesday, June 4, 2024. THE CANADIAN PRESS/Sean Kilpatrick

Meanwhile, program expenses excluding net actuarial losses amounted to $344.91 billion compared with $333.20 billion a year earlier, due to increases in direct program spending, major transfers to persons and major transfers to provinces, territories and municipalities.

Public debt charges totalled $40.86 billion, down from $41.12 billion a year earlier, due to lower short-term interest rates on treasury bills and lower net interest on cross-currency swap transactions and other liabilities.

Net actuarial losses were $3.74 billion, up from $ 3.02 billion a year earlier.

This report by The Canadian Press was first published Feb. 27, 2026.

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