FX.co ★ Canada Government Budget Surplus Shrinks in February

Canada’s federal government posted a budget surplus of CAD 5.66 billion in February 2026, down from a surplus of CAD 7.57 billion in February 2025. Revenues fell by 5.5%, driven primarily by lower corporate income tax receipts, despite increases in other revenue categories. Program expenses declined by 2.8%, largely because most major transfers to provinces, territories, and municipalities were postponed. Public debt charges rose by 2.5%, as the impact of higher interest rates and a larger stock of marketable bonds was partially offset by lower interest rates on treasury bills. For the period from April 2025 to February 2026, the federal deficit narrowed to CAD 25.55 billion, but remained above the CAD 19.27 billion deficit recorded over the same period a year earlier.