Canada: Government Budget Deficit Marginally Shrinks in January.

Canada’s government recorded a federal budget deficit of CAD 5.07 billion in January 2026 compared with a deficit of CAD 5.13 billion in January 2025 as government expenditures outstripping revenues continued to widen the fiscal gap. This result reflected a 1.6% year-to-date increase in revenues driven by higher income from custom import duties and corporate and personal income tax revenues. Program expenses rose 2.6% on increases across all major categories of spending while public debt charges marginally shrank by 0.3% as lower interest rates on treasury bills and other instruments outweighed higher average effective interest rates on an increased stock of marketable bonds. For the April to January 2025-26 window the federal deficit reached CAD 31.21 billion up from CAD 26.85 billion in the same period a year earlier.