Carney Says Ottawa Will Balance Operating Budget a Year Early
Federal revenues rose 10% in the April-to-June period, helping the government move up its operating budget target, Desjardins said.
- Prime Minister Mark Carney announced last week the federal government is on track to balance its operating budget a year ahead of schedule, hitting the milestone next year instead of fiscal 2028.
- Stronger tax revenues, which rose 10 per cent year-over-year in the spring, helped drive the improvement. Finance Minister Francois-Philippe Champagne's office cited fiscal prudence and spending efficiency as key drivers.
- At the Canada Investment Summit, the Liberals unveiled the 'productivity mega-deduction,' a new tax measure designed to boost capital spending. The deduction is expected to cost $36 billion over five years.
- Economists like Randall Bartlett argue the government's definitions for capital and operating expenses are overly broad. Bartlett contends this spending should be classified as program spending within the operating budget.
- Sahir Khan, executive vice-president at the University of Ottawa's Institute for Fiscal Studies and Democracy, said borrowing for capital investments "is going to take time" for returns. Trade uncertainty and tariffs may limit overall economic benefits.
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31 Articles
Mark Carney announced that the government was on track to balance its operating budget in 2027, a year earlier than expected.
The federal government is expected to begin Parliament's fall session in a more favourable fiscal position, despite a wave of spending in the spring and summer.
The Toronto Star
Ottawa’s summer spending flurry offset by stronger GDP, oil revenues
OTTAWA - The federal government likely finds itself in a better fiscal position as it heads into the fall session of Parliament this week, thanks in no small part to
Winnipeg Free Press
Ottawa's summer spending flurry offset by stronger GDP, oil revenues
OTTAWA - The federal government likely finds itself in a better fiscal position as it heads into the fall session of Parliament this week, thanks in no small part to some rosier economic results.
CTV News Ottawa’s Fiscal Read: Revenue Up 9.8%, Debt Charges Up 6.1%
Canada’s federal revenue grew much faster than spending in the first three months of the fiscal year, nearly erasing the deficit. The better start matters for government bonds and rate-sensitive shares, but it does not settle the full-year budget question. Canada recorded a C$370 million federal budget deficit from April through June 2026, down from…
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