Canada Budget Deficit Rises to C$26.85 Billion Over First Ten Months of 2024/25

Canada’s deficit for the first ten months of the 2024/25 fiscal year has reached C$26.85 billion ($18.77 billion), up from C$25.67 billion during the same period last year. The increase is largely due to government program expenses rising by 10.9% overall, with almost all major spending areas, excluding elderly and child benefits, employment insurance, and COVID-19 support, experiencing increases. Public debt charges also grew by 16.2% mainly because of an increase in marketable bonds, while revenues increased by 10.9%, helped mainly by higher personal income tax and other tax revenues.

In January 2025 alone, the deficit surged to C$5.13 billion compared to C$2.06 billion in January 2024. These figures, reported by Reuters on March 28, 2025, underscore the fiscal pressures as expenditures marginally outpace revenues, fueling concerns over the longer-term fiscal outlook in Canada.