FX.co ★ Canada Government Budget Surplus Expands in June

In June 2025, the Canadian government recorded a budget surplus of CAD 3.63 billion, a significant increase from the CAD 0.939 billion surplus reported in June 2024. This improvement was primarily due to a CAD 4.0 billion (9.8%) rise in revenues, driven by elevated corporate income tax and increased customs import duties, although proceeds from pollution pricing decreased by CAD 1.3 billion. On the expenditure side, program expenses, excluding net actuarial losses, saw an uptick of CAD 2.0 billion (5.9%), with most major spending categories experiencing increases. Meanwhile, public debt charges decreased by CAD 0.4 billion (9.6%), as the benefits of lower interest rates on treasury bills and diminished CPI adjustments on Real Return Bonds outweighed the impact of higher average effective rates on a growing stock of marketable bonds. Over the period from April to June 2025–26, the federal budget deficit was CAD 3.3 billion, compared to CAD 2.9 billion during the same time frame in 2024–25.