Prime Minister Mark Carney’s Liberal government is projecting a $62.3-billion deficit this fiscal year, with no balanced budget in sight and annual debt interest costs expected to reach $85.5 billion by 2030–31.
Budget 2026 puts this year’s deficit $3 billion below the forecast released in the spring. However, part of the improved outlook comes from lowering expected spending without reducing the funding already approved for government programs.
The deficit is projected to edge up to $62.5 billion next year before falling to $52.9 billion in 2030–31.
Meanwhile, the cost of servicing federal debt will climb from $60.2 billion this year to $85.5 billion by the end of the forecast, an increase of approximately 42 per cent.
