OTTAWA, Aug 29 (Reuters) - Canada recorded a higher budget deficit of C$3.34 billion ($2.42 billion) over the first three 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 $2.88 billion, it said in a statement.
Program expenses rose 4.6% on increases on major transfers to persons and provinces. Public debt charges decreased by 0.6% on lower interest rates on treasury bill but this was partly offset by higher average effective rates on an increased stock of marketable bonds, the ministry said.
Year-to-date revenues grew by 2.9%, largely reflecting higher personal income tax revenue, revenue from other taxes and higher custom import duties.
Duties collected through import taxes jumped 183% for the first three months through June to C$3.57 billion, mainly on account of counter-tariffs imposed on U.S. imports.
On a monthly basis, Canada posted a surplus of C$3.63 billion in June, compared to a surplus of C$939 million in June 2024.
($1 = 1.3817 Canadian dollars)
(Reporting by Promit Mukherjee, editing by David Ljunggren)
((Reuters Ottawa bureau; david.ljunggren@tr.com, opens new tab))
Keywords: CANADA BUDGET/
