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Federal deficit narrows to $5.1B after four months
Ottawa posted a $5.1B deficit for April to July, down from $7.8B a year earlier; debt charges hit $20B in four months.
Why it matters
The four-month tally is not a full-year projection, but it offers the first concrete read on the fiscal year that runs to March 31. A smaller deficit, higher revenue and record debt-servicing costs set the tone for Ottawa's fall fiscal update.
The Finance Department credited higher personal income tax revenue, other revenues and GST revenue for the revenue gain. Program expenses rose on higher direct program costs and major transfers to persons.
Watch the debt line: public debt charges totalled $20 billion in four months, up from $18.6 billion a year earlier — interest on Ottawa's borrowing now rivals some of its largest program envelopes.
Full report
The federal government posted a deficit of $5.1 billion for April to July, the first four months of the 2026-27 fiscal year, down from $7.8 billion in the same period a year earlier, the Finance Department's monthly fiscal monitor showed. The Canadian Press reported the figures on September 28, 2026.
Revenue totalled $175.5 billion, up from $163.4 billion a year ago. Program expenses, excluding net actuarial losses, reached $159 billion, up from $151.3 billion. Public debt charges — the interest Ottawa pays on its borrowing — totalled $20 billion, up from $18.6 billion. Net actuarial losses were $1.7 billion, up from $1.3 billion.
The figures cover only the year-to-date period, not a full-year projection. The Parliamentary Budget Officer has raised questions about the deficit path heading into the fall.
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