Tammy LynneTammy Lynne • 2nd2ndOwner, Project Eagle Feather Productions INC.Owner, Project Eagle Feather Productions INC.14h •
14 hours ago • Visible to anyone on or off LinkedInFollow
Here’s something you probably won’t hear Pierre Poilievre and the Conservatives talking much about.
Canada’s federal deficit for the first three months of the 2026-27 fiscal year came in at just $370 million.
During the same period last year, the deficit was $6.28 billion.
That’s not a minor improvement.
That’s a dramatic change in the government’s fiscal position.
Federal revenues grew by 9.8%, driven largely by higher personal and corporate income tax revenues and GST revenues. Meanwhile, program expenses increased by 4.3%.
In other words, revenues are growing considerably faster than government spending.
Canada also recorded a $989 million surplus in June.
Public debt charges did rise 6.1%, largely reflecting the higher interest costs associated with bonds issued during a period of elevated rates. But with revenues growing 9.8% and the deficit falling dramatically compared with last year, the overall fiscal picture is moving in the right direction.
But these numbers don’t exactly support the constant Conservative narrative that Canada’s finances are spiralling hopelessly out of control.
The economy still faces serious challenges, particularly from Trump’s trade war and ongoing uncertainty around exports.
But a deficit dropping from $6.28 billion to $370 million in a single year is worth paying attention to.
Fiscal responsibility isn’t always about cutting everything in sight.
Sometimes it’s about growing the economy and revenues faster than expenses.
