OTTAWA, Nov 28 (Reuters) – Canada recorded a slightly higher C$16.09 billion ($11.52 billion) budget deficit for the first six months of the 2025/26 fiscal year as government expenditures grew faster than revenues, the finance ministry said on Friday.
By comparison, the deficit in the same period a year earlier had been C$13.01 billion, it said in a statement.
Program expenses rose 4.2% on increases across almost all major categories of spending. Public debt charges fell by 2.2% largely because of lower interest rates, the ministry said.
Year-to-date revenues grew by 2.5%, largely reflecting higher personal income tax revenue and revenue from other taxes and duties, including higher customs duties collected due to Canada’s counter tariffs on the U.S.
Custom import duties increased 142% for the six months when compared with the six months last fiscal year.
On a monthly basis, Canada posted a deficit of C$5.02 billion in September, compared to a C$3.17 billion deficit in September 2024.
($1 = 1.3964 Canadian dollars)
(Reporting by Promit Mukherjee, editing by Caroline Stauffer)
((Reuters Ottawa bureau; promit.mukherjee@tr.com))
Keywords: CANADA BUDGET/
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