Canada’s federal budget surplus narrowed to C$1.0 billion in June 2026, down from C$3.6 billion a year earlier, as higher program spending and public debt charges offset broadly stable revenues. Program expenses excluding net actuarial losses rose by C$2.1 billion, driven primarily by increased direct program spending. Public debt charges climbed by C$0.5 billion, reflecting a larger stock of marketable bonds and higher CPI indexation on Real Return Bonds, while net actuarial losses edged up by C$0.1 billion.
Total revenues were essentially unchanged, rising by just C$10 million to C$1.6 billion. Higher employment insurance premiums and other non-tax revenues offset a C$1.6 billion drop in tax receipts, mainly attributable to lower corporate income tax revenues.
