Canada deemed C$4.461 billion in COVID-19 benefit overpayments uncollectible in fiscal 2025-26, up from C$26 million the previous year, while C$1.317 billion remained in net receivables, official accounts show.
The fiscal year ended March 31, 2026. The Public Accounts of Canada recorded C$4.461 billion in overpayments determined to be uncollectible. Auditor General Karen Hogan’s office rounded the total to C$4.5 billion in commentary released Nov. 9, describing it as COVID-19 benefits the government would not recover. The Public Accounts were posted Nov. 6.
The government had already accounted for the expected losses. Removing the balances reduced gross receivables and the corresponding allowance by matching amounts, leaving reported expenses and net receivables unchanged.
At March 31, 2026, gross receivables for COVID-19 benefit overpayments stood at C$7.648 billion, against a C$6.331 billion allowance for doubtful accounts. The resulting net balance was C$1.317 billion, down from C$2.470 billion a year earlier. At March 31, 2025, gross receivables were C$12.962 billion and the allowance was C$10.491 billion.
The Auditor General’s commentary also reported that C$7.2 billion in Canada Emergency Business Account loans remained outstanding, with C$5.6 billion considered likely uncollectible. Those business loans are separate from the benefit overpayment write-offs.
A 2022 audit by the Office of the Auditor General of Canada found that departments relied on personal attestations and carried out fewer eligibility checks before paying benefits to speed emergency aid. That audit separately identified C$4.6 billion in overpayments to ineligible individual benefit recipients and estimated that at least C$27.4 billion in payments to individuals and employers warranted further investigation. It said the programs helped prevent a rise in poverty, mitigate income inequalities and support economic recovery.
