Canada’s federal deficit widened to C$4.77 billion in July 2026 from C$1.51 billion a year earlier, as fiscal expenditures increased. Program expenses, excluding net actuarial losses, rose 5.1% to C$41.81 billion, largely due to higher direct program expenses and major transfers to persons, partly offset by lower pollution pricing proceeds returned to Canadians. Public debt charges also increased 7.4% to C$5.4 billion, reflecting higher average effective interest rates on a larger stock of marketable bonds. Net actuarial losses rose 23.9% to C$415 million. Meanwhile, revenues rose 7.4% to C$42.8 billion, largely reflecting higher personal income tax revenues, partly offset by lower customs import duties, energy tax revenues and corporate income tax revenues.