Federal government posts $3.3 billion deficit from April to June

OTTAWA — The federal government posted a $3.3 billion deficit in the first three months of its fiscal year.

The result for the April-to-June period compared with a $2.9 billion deficit for the same stretch last year.

Revenues increased $3.5 billion or 2.9 per cent from the prior year, largely due to increases in customs import duties related to Canada’s counter-tariffs on American goods, along with higher corporate and personal income tax revenues.

The Finance Department says program expenses excluding net actuarial losses rose $5 billion, or 4.6 per cent.

Public debt charges decreased $100 million, or 0.6 per cent, as the impact of lower interest rates on treasury bills was largely offset by higher average effective rates on an increased stock of marketable bonds.

Net actuarial losses fell $900 million, or 46.8 per cent.

This report by The Canadian Press was first published Aug. 29, 2025.