Canada public accounts show higher 2026 revenue, spending and debt charges

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Canada 2026 accounts overview

Highlights

Federal revenues in 2026 rise 3.0% to $526.4 billion while spending increases 3.4% to $565.7 billion, widening the fiscal gap.
Public debt charges climb to $53.5 billion in 2026 as net actuarial losses surge by $9.6 billion, linked to changes from Budget 2025.
Comprehensive Expenditure Review forecasts savings of $9 billion in 2026-27, increasing to $13 billion by 2028-29 for future Public Accounts.

Fiscal 2026 results and expenditure breakdown

As reported by Canada.ca, citing the Treasury Board of Canada Secretariat, total federal revenues amount to $526.4 billion in 2026, up $15.5 billion, or 3.0%, from 2025, while federal spending reaches $565.7 billion, up $18.4 billion, or 3.4%. The Public Accounts are tabled under the Financial Administration Act and are jointly prepared by the Receiver General for Canada, the Treasury Board of Canada Secretariat, including the Office of the Comptroller General, and the Department of Finance.

Personal income tax remains the largest federal revenue source at $247.7 billion, or 47.1% of total revenues, up from 45.9% in 2025. Corporate income tax contributes $104.2 billion, or 19.8% of revenues, while non-resident income tax reaches $14.5 billion, or 2.8%. Goods and Services Tax revenue totals $51.8 billion, or 9.8% of revenues, and Employment Insurance premium revenue stands at $32.5 billion, unchanged at 6.2% of the total.

On the spending side, major transfers to persons total $141.7 billion, or 25.0% of expenses, while transfers to other levels of government reach $110.8 billion, or 19.6%. Other transfer payments amount to $110.7 billion, and other operating expenses across departments, agencies and Crown corporations total $131.0 billion, or 23.2% of expenses. Public debt charges rise to $53.5 billion, while net actuarial losses reach $13.6 billion.

Budget pressure points and review savings outlook

Net actuarial losses increase by $9.6 billion, primarily because of accounting adjustments tied to changes in federal employee benefit and pension plans announced in Budget 2025. The government says those changes accelerate the recognition of costs that had previously been expected to occur over a longer period.

Professional and special services expenditures total $22.8 billion in 2026, with spending on management consulting representing less than 2% of that category. The government also says the Comprehensive Expenditure Review is projected to deliver savings of $9 billion in 2026-27, $10 billion in 2027-28 and $13 billion in 2028-29, with those savings to be reflected in future Public Accounts.

Sovereign borrowing risks in a higher-rate environment were the focus of our earlier coverage, noting that prolonged geopolitical tensions and elevated fiscal spending are tightening governments’ fiscal room. We also pointed out that rising inflation shocks and higher refinancing costs can worsen debt-servicing burdens—especially in emerging and frontier markets with narrower revenue bases—adding pressure to public finances and credit outlooks.

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