Canada’s federal budget balance showed an improvement in February 2026, with the deficit narrowing to CAD 25.55 billion from CAD 31.21 billion in January 2026. The latest data, updated on 24 April 2026, indicate a moderation in the monthly shortfall as fiscal outcomes continue to be monitored against last year’s levels.
The February reading is assessed on a year-over-year basis, comparing this month’s budget position with that of February a year earlier. Similarly, January’s figure of CAD 31.21 billion represented a year-over-year comparison with the same month of the previous year. While detailed drivers of the change were not provided, the smaller deficit points to an incremental improvement in Canada’s fiscal position as 2026 progresses.
