Canada’s federal government spent C$39.3 billion more than it collected in fiscal 2026, with expenses growing faster than revenue, according to figures in the newly tabled Public Accounts.
The Treasury Board of Canada Secretariat released the Public Accounts of Canada 2026 on Nov. 6. The figures cover the fiscal year ended March 31, 2026. Expenses reached C$565.7 billion, up C$18.4 billion, or 3.4%, from 2025. Revenue totaled C$526.4 billion, an increase of C$15.5 billion, or 3%.
Personal income tax remained the largest source of revenue at C$247.7 billion, equal to 47.1% of the total. Corporate income tax contributed C$104.2 billion, or 19.8%. The Goods and Services Tax (GST) generated C$51.8 billion, representing 9.8% of revenue.
Major transfers to persons amounted to C$141.7 billion, including Old Age Security, Employment Insurance and children’s benefits. Transfers to other levels of government reached C$110.8 billion. Other transfer payments totaled C$110.7 billion and included support for Indigenous Peoples, research, farmers, students and businesses, as well as housing, infrastructure and international assistance. Public debt charges were C$53.5 billion.
Net actuarial losses came to C$13.6 billion, up C$9.6 billion from 2025. The accounts link most of the increase to Budget 2025 changes affecting federal employee benefits and pension plans, which brought some costs into earlier reporting periods.
The government’s other expenses, which include operating costs across departments and agencies, totaled C$131 billion. Professional and special services accounted for C$22.8 billion; management consulting represented less than 2% of that amount.
The Auditor General of Canada audits the consolidated financial statements in Volume I each year. The Comprehensive Expenditure Review is projected to save C$9 billion in 2026-27, C$10 billion in 2027-28 and C$13 billion in 2028-29. Those savings will be reflected in the Public Accounts as they are realized.
