Canada's government recorded a federal budget surplus of CAD 5.66 billion in February 2026, a decrease compared with a surplus of CAD 7.57 billion a year earlier. Revenues decreased by 5.5%, reflecting lower corporate income tax revenue, albeit higher revenues in other areas. Program expenses declined by 2.8% due to most major transfers to provinces, territories and municipalities being delayed. Public debt charges rose by 2.5%, as higher interest rates and an increased stock of marketable bonds were offset by lower interest rates on treasury bills. For the April 2025 to February 2026 period, the federal deficit eased to CAD 25.55 billion, while remaining higher than the CAD 19.27 billion deficit a year earlier.