OTTAWA, April 28 (Reuters) – The Canadian government on Tuesday said the 2025/26 budget deficit would be lower than estimated and trimmed its growth forecasts for the next two fiscal years.
In a spring economic statement, the finance ministry said the 2025/26 deficit would be C$66.9 billion, less than the C$78.3 billion shortfall predicted in the November 2025 budget.
The improved figures in part reflect measures to contain spending as well as increased revenues from the sale of crude oil, it said.
Real GDP growth in 2026 is seen at 1.1% compared to the 1.2% forecast in November and in 2027 growth is put at 1.9%, down from 2.0%. In 2028 growth is seen unchanged at 1.9% and staying at that level in 2029, down from 2.0%.
The ministry left its deficit forecasts for the next four fiscal years virtually unchanged from November, with the 2026/27 shortfall seen at C$65.3 billion, 2027/28 at C$63.1 billion, 2028/29 at C$57.7 billion and 2029/30 at C$56.2 billion.
The finance ministry also said the federal debt-to-GDP ratio in 2025/26 was 41.1%, compared to the 42.4% forecast in November. The ratio is then predicted to increase to 41.5% in 2026/27, rising further to 41.8% in 2027/28 and 41.9% in 2028/29.
(Reporting by David Ljunggren, editing by Promit Mukherjee)
((Reuters Ottawa bureau; david.ljunggren@tr.com))
Keywords: CANADA BUDGET/FORECASTS
