Canada’s government posted a budgetary surplus of CAD 3.63 billion in June 2025, compared with a surplus of CAD 0.939 billion in June 2024. This shift largely reflected a CAD 4.0 billion (9.8%) increase in revenues, largely driven by higher corporate income tax and customs import duties, while pollution pricing proceeds fell by CAD 1.3 billion. Program expenses, excluding net actuarial losses, rose by CAD 2.0 billion (5.9%), driven by increases across most major spending categories. Public debt charges fell by CAD 0.4 billion (9.6%) as lower interest rates on treasury bills and smaller CPI adjustments on Real Return Bonds more than offset higher average effective rates on an increased stock of marketable bonds; for the April–June 2025–26 period, the federal budgetary deficit stood at CAD 3.3 billion, compared to CAD 2.9 billion in the same period of 2024–25.