Canada’s federal budget deficit expanded to CAD 29.7 billion in March 2026, up from CAD 23.9 billion in the same month a year earlier. The budgetary deficit before net actuarial losses, excluding the impact of amortizing pension and employee benefit plan revaluations, narrowed to CAD 20.6 billion from CAD 23.5 billion in March 2025. Net actuarial losses surged by 240.7%, primarily due to the accelerated amortization of losses from amendments to employee future benefit plans in 2025-26. Meanwhile, program expenses excluding actuarial losses fell by 1.9%, driven by lower direct costs following savings from benefit plan amendments announced in Budget 2025. Revenues increased by 1.1%, supported by higher personal and corporate income tax receipts, other revenues, and customs import duties tied to countermeasures against US tariffs.