FX.co ★ Canada’s Budget Deficit Widens in March

Canada’s federal budget deficit widened to CAD 29.7 billion in March 2026, up from CAD 23.9 billion in the same month a year earlier. However, the deficit before net actuarial losses—excluding the impact of amortizing pension and employee benefit plan revaluations—narrowed to CAD 20.6 billion from CAD 23.5 billion in March 2025. Net actuarial losses rose by 240.7%, largely reflecting the accelerated amortization of losses stemming from amendments to employee future benefit plans in 2025–26. At the same time, program expenses excluding actuarial losses declined by 1.9%, driven by lower direct costs associated with savings from the benefit plan changes announced in Budget 2025. Revenues grew by 1.1%, supported by higher personal and corporate income tax receipts, as well as increases in other revenues and in customs import duties linked to countermeasures against US tariffs.