Canada: public finances

What is Canada's budget deficit?

The federal deficit for 2025-26 is projected at $66.9 billion, or 2.1% of GDP, in the Spring Economic Update 2026 from the Department of Finance Canada. That is $11.5 billion lower than projected in Budget 2025. The deficit is forecast at $65.3 billion in 2026-27 and to decline to $53.2 billion, or 1.4% of GDP, by 2030-31.

These are projections, not final results; the actual deficit for each year is confirmed in the audited Public Accounts. The federal fiscal year runs from April to March. The update projects the federal debt at 41.1% of GDP in 2025-26 and 41.5% in 2026-27. The Parliamentary Budget Officer publishes its own independent projections.

Official sources: Department of Finance Canada: Spring Economic Update 2026, economic and fiscal overview

What was the federal government deficit last quarter?

The federal government recorded a deficit of $4.1 billion in the second quarter of 2026, $1.1 billion more than a year earlier, according to Statistics Canada's government finance statistics, released on 25 September 2026. Provincial and territorial governments had a combined deficit of $10.1 billion. Including the Canada and Quebec pension plans, general government recorded a surplus of $10.5 billion.

These figures follow the IMF's government finance statistics standard, so they differ from the federal budget's accounting. The pension plans run surpluses that lift the general government balance. Federal expenses rose 6.3%, led by payments under the Canada Groceries and Essentials Benefit. Third-quarter data are due on 11 January 2027.

Official sources: Statistics Canada: Government finance statistics, second quarter 2026

How much tax revenue does the federal government collect?

Federal government revenue in the second quarter of 2026 was $7.1 billion (5.6%) higher than a year earlier, led by a $6.7 billion (8.1%) rise in taxes on income, profits and capital gains, according to Statistics Canada. The quarterly release reports changes rather than the full-year total.

Statistics Canada compiles these quarterly figures from the national accounts using the IMF standard. Full-year federal revenue by source, including personal and corporate income tax and the GST, is reported in the Department of Finance's Spring Economic Update 2026 and in the audited Public Accounts. Quarterly figures are seasonally adjusted and revised in later releases.

Official sources: Statistics Canada: Government finance statistics, second quarter 2026 · Department of Finance Canada: Spring Economic Update 2026, economic and fiscal overview

How much does Canada collect from tariffs?

Taxes on international trade and transactions, mainly customs duties, brought the federal government $2.5 billion in the second quarter of 2026, down 30.8% from $3.6 billion a year earlier, according to Statistics Canada. They made up 1.9% of federal revenue, compared with 2.9% a year earlier.

The figures are net of repayments under relief programs and remission orders. The year-earlier peak reflected Canada's counter-tariffs on US goods, most of which were removed from 1 September 2025, while tariffs on US steel, aluminum and motor vehicles were kept. New targeted counter-tariffs on selected US imports took effect on 8 September 2026, after the period covered.

Official sources: Statistics Canada: Government finance statistics, second quarter 2026

What is Canada's net debt as a percentage of GDP?

Canada's federal government net debt was $1,051.2 billion in the second quarter of 2026, or 31.6% of GDP, according to Statistics Canada's government finance statistics. Net debt for all levels of government combined was 13.5% of GDP, or 44.6% excluding the assets of the Canada and Quebec pension plans.

Net debt is liabilities minus financial assets, so it is smaller than gross debt. The Department of Finance uses a different measure, the federal debt (accumulated deficit), which it projects at 41.1% of GDP in 2025-26 in the Spring Economic Update 2026. International comparisons often include the pension plans' assets, which lowers Canada's figure.

Official sources: Statistics Canada: Government finance statistics, second quarter 2026 · Department of Finance Canada: Spring Economic Update 2026, economic and fiscal overview

What is Canada's government debt?

The IMF puts general government gross debt in Canada at 113.6% of GDP in 2025. Its high point since 2005 was 2020, at 118.1% of GDP; its low point was 2007, at 67.2% of GDP. Of 185 countries with 2025 data, 14th highest.

What is Canada's fiscal deficit?

The latest figure from the IMF, for 2025, is -1.7% of GDP (a deficit). Its high point since 2005 was 2006, at 1.8% of GDP; its low point was 2020, at -10.9% of GDP. World rank, highest first: 65th of 188.

What is Canada's government revenue?

The IMF puts general government revenue in Canada at 42.3% of GDP in 2025. The peak was 42.4% of GDP in 2021 and the low 38.3% of GDP in 2011. Worldwide: 36th of 187.

What is Canada's government spending?

In 2025, general government spending in Canada was 44.0% of GDP, according to the IMF. Its high point since 2005 was 2020, at 52.4% of GDP; its low point was 2014, at 38.4% of GDP. Worldwide: 38th of 186.

How much tax does Canada collect?

The IMF puts central government tax revenue in Canada at 13.7% of GDP in 2024. The peak was 14.0% of GDP in 2021 and the low 11.6% of GDP in 2013. World rank, highest first: 66th of 92.

What is Canada's military budget as a share of GDP?

1.6% of GDP: that is military spending in Canada for 2025, according to SIPRI. It is the top of the series, which starts in 2005. Of 149 countries with 2025 data, 76th highest.