The Fiscal Monitor - June 2025

Highlights

June 2025

There was a budgetary surplus of $3.6 billion in June 2025, compared to a surplus of $0.9 billion in June 2024. The budgetary surplus before net actuarial losses and gains was $4.0 billion, compared to a surplus of $1.6 billion in the same period of 2024-25. The budgetary balance before net actuarial losses and gains is intended to supplement the traditional budgetary balance and improve the transparency of the government's financial reporting by isolating the impact of the amortization of net actuarial losses and gains arising from the revaluation of the government's pension and other employee future benefit plans.

Chart 1
Monthly Budgetary Balance and Budgetary Balance Excluding Net Actuarial Losses and Gains
Chart 1: Monthly Budgetary Balance and Budgetary Balance Excluding Net Actuarial Losses and gains
Text version
Month 2024-25 2025-26 2024-25 excluding net actuarial losses and gains 2025-26 excluding net actuarial losses and gains
April -4,994 -6,271 -4,364 -5,936
May 1,172 -695 1,802 -360
June 939 3,629 1,569 3,964
July -4,412 -3,782
August -2,546 -1,916
September -3,169 -4,309
October -1,493 -1,158
November -8,213 -7,878
December 1,002 1,337
January -5,134 -4,799
February 7,574 7,909
March -23,880 -23,545

Compared to June 2024:

April to June 2025

The government posted a budgetary deficit of $3.3 billion for the April to June period of the 2025-26 fiscal year, compared to a deficit of $2.9 billion reported for the same period of 2024-25. The budgetary deficit before net actuarial losses was $2.3 billion, compared to a deficit of $1.0 billion in the April to June period of 2024-25.

Compared to 2024-25:

Chart 2
Year-to-Date Budgetary Balance and Budgetary Balance Excluding Net Actuarial Losses and Gains
Chart 2: Year-to-Date Budgetary Balance and Budgetary Balance Excluding Net Actuarial Losses and Gains

1 Source: 2024 Fall Economic Statement

Text version
Year to date 2024-25 2025-26 2024-25 excluding net actuarial losses and gains 2025-26 excluding net actuarial losses and gains
April -4,994 -6,271 -4,364 -5,936
May -3,822 -6,966 -2,562 -6,296
June -2,882 -3,338 -992 -2,333
July -7,294 -4,774
August -9,841 -6,691
September -13,010 -11,000
October -14,504 -12,159
November -22,717 -20,037
December -21,715 -18,700
January -26,849 -23,499
February -19,274 -15,589
March -43,154 -39,134
Projected annual budgetary balance1 -48,308 -42,158 -44,262 -38,310
Table 1
Summary statement of transactions
$ millions
  June April to June
  2024 2025 2024-25 2025-26
Budgetary transactions
Revenues1 40,826 44,808 120,388 123,928
Expenses
Program expenses, excluding net actuarial losses
-34,643 -36,675 -107,518 -112,488
Public debt charges
-4,614 -4,169 -13,862 -13,773
Budgetary balance, excluding net actuarial losses 1,569 3,964 -992 -2,333
Net actuarial losses
-630 -335 -1,890 -1,005
Budgetary balance (deficit/surplus) 939 3,629 -2,882 -3,338
Non-budgetary transactions -10,216 -11,279 -33,642 -27,193
Financial source/requirement -9,277 -7,650 -36,524 -30,531
Net change in financing activities 1,853 -4,614 10,656 36,994
Net change in cash balances -7,424 -12,264 -25,868 6,463
Cash balance at end of period 40,788 52,604
Note: Positive numbers indicate net source of funds. Negative numbers indicate net requirement for funds.
1 Year-to-date results for 2025-26 have been reduced by $467 million to reflect a correction to the amount originally reported for personal income tax revenues for May 2025.

Revenues

Revenues in June 2025 totalled $44.8 billion, up $4.0 billion, or 9.8 per cent, from June 2024.

Revenues for the April to June period of 2025-26 totalled $123.9 billion, up $3.5 billion, or 2.9 per cent, from the same period in 2024-25.

Table 2
Revenues
June April to June
2024 2025 Change 2024-25 2025-26 Change
($ millions) (%) ($ millions) (%)
Tax revenues
Income taxes
Personal1
18,256 19,012 4.1 52,779 53,916 2.2
Corporate
7,829 11,626 48.5 21,855 23,487 7.5
Non-resident
1,012 728 -28.1 3,483 3,097 -11.1
Total income tax revenues
27,097 31,366 15.8 78,117 80,500 3.1
Other taxes and duties
Goods and Services Tax
4,310 4,660 8.1 14,924 13,487 -9.6
Energy taxes
448 445 -0.7 1,293 1,308 1.2
Customs import duties
419 1,211 189.0 1,261 3,567 182.9
Other taxes, excise taxes and duties
630 507 -19.5 1,656 1,814 9.5
Total other taxes and duties
5,807 6,823 17.5 19,134 20,176 5.4
Total tax revenues 32,904 38,189 16.1 97,251 100,676 3.5
Pollution pricing proceeds to be returned to Canadians 1,188 -140 -111.8 3,121 2,923 -6.3
Employment Insurance premiums 2,872 2,962 3.1 8,999 9,045 0.5
Other revenues 3,862 3,797 -1.7 11,017 11,284 2.4
Total revenues 40,826 44,808 9.8 120,388 123,928 2.9

Note: Totals may not add due to rounding.
1 Year-to-date results for 2025-26 have been reduced by $467 million to reflect a correction to the amount originally reported for personal income tax revenues for May 2025.

Expenses

Program expenses excluding net actuarial losses in June 2025 were $36.7 billion, up $2.0 billion, or 5.9 per cent, from June 2024.

Public debt charges decreased $0.4 billion, or 9.6 per cent, largely reflecting lower interest rates on treasury bills and lower Consumer Price Index adjustments on Real Return Bonds, offset in part by an increase in the stock and average effective interest rate of marketable bonds.

Net actuarial losses, which represent the amortization of changes in the value of the government's obligations for pensions and other employee future benefits accrued in previous fiscal years and related assets, were down $0.3 billion, or 46.8 per cent, largely reflecting the amortization of gains arising from actuarial valuations prepared for the Public Accounts of Canada 2024, as well as the end of the amortization of certain prior years' net actuarial losses.

For the April to June period of 2025-26, program expenses excluding net actuarial losses were $112.5 billion, up $5.0 billion, or 4.6 per cent, from the same period the previous year.

Public debt charges decreased by $0.1 billion, or 0.6 per cent, as the impact of lower interest rates on treasury bills was largely offset by higher average effective rates on an increased stock of marketable bonds.

Net actuarial losses decreased by $0.9 billion, or 46.8 per cent, reflecting both the amortization of gains arising from updated actuarial valuations of the government's pension and other employee future benefit plans as at March 31, 2024, which began partway through 2024-25, and the end of the amortization of certain prior years' net actuarial losses.

Table 3
Expenses
  June April to June  
  2024 2025 Change 2024-25 2025-26 Change
($ millions) (%) ($ millions) (%)
Major transfers to persons
Elderly benefits
6,657 6,716 0.9 19,811 20,210 2.0
Employment Insurance benefits
1,447 2,146 48.3 5,156 6,191 20.1
COVID-19 income support for workers1
-35 16 145.7 -206 -32 84.5
Children's benefits
2,300 2,448 6.4 6,896 7,398 7.3
Total major transfers to persons 10,369 11,326 9.2 31,657 33,767 6.7
Major transfers to provinces, territories and municipalities
Canada Health Transfer
4,340 4,557 5.0 13,020 13,671 5.0
Canada Social Transfer
1,409 1,451 3.0 4,227 4,354 3.0
Equalization
2,104 2,181 3.7 6,313 6,542 3.6
Territorial Formula Financing
351 373 6.3 2,002 2,130 6.4
Canada-wide early learning and child care
740 1,868 152.4 740 1,868 152.4
Canada Community-Building Fund
- - n/a - - n/a
Health agreements with provinces/territories2
- - n/a 2,186 2,431 11.2
Other fiscal arrangements3
-615 -467 24.1 -1,861 -1,805 3.0
Total major transfers to provinces, territories and municipalities 8,329 9,963 19.6 26,627 29,191 9.6
Pollution pricing proceeds returned to Canadians 203 233 14.8 2,758 2,490 -9.7
Direct program expenses
Other transfer payments
6,394 4,874 -23.8 19,714 18,079 -8.3
Operating expenses
9,348 10,279 10.0 26,762 28,961 8.2
Total direct program expenses
15,742 15,153 -3.7 46,476 47,040 1.2
Total program expenses, excluding net actuarial losses 34,643 36,675 5.9 107,518 112,488 4.6
Public debt charges 4,614 4,169 -9.6 13,862 13,773 -0.6
Total expenses, excluding net actuarial losses 39,257 40,844 4.0 121,380 126,261 4.0
Net actuarial losses 630 335 -46.8 1,890 1,005 -46.8
Total expenses 39,887 41,179 3.2 123,270 127,266 3.2

Note: Totals may not add due to rounding.
1 COVID-19 income support for workers includes the Canada Emergency Response Benefit, the Canada Recovery Benefit, the Canada Recovery Caregiving Benefit, the Canada Recovery Sickness Benefit, and the Canada Worker Lockdown Benefit.
2 Health agreements with provinces and territories include the Working Together bilateral agreements and Aging with Dignity bilateral agreements. Remaining funding under the Home and Community Care, and Mental Health and Addictions Services bilateral agreements was integrated into these agreements.
3 Other fiscal arrangements include the Quebec Abatement (Youth Allowances Recovery and Alternative Payments for Standing Programs), which represents a recovery from Quebec of a tax point transfer; statutory subsidies; and other items.

The following table presents total expenses by main object of expense.

Table 4
Total expenses by object of expense
  June April to June  
  2024 2025 Change 2024-25 2025-26 Change
($ millions) (%) ($ millions) (%)
Transfer payments 25,295 26,396 4.4 80,756 83,527 3.4
Other expenses
Personnel, excluding net actuarial losses and gains
5,565 5,983 7.5 17,039 18,033 5.8
Transportation and communications
261 279 6.9 588 684 16.3
Information
24 27 12.5 62 74 19.4
Professional and special services
1,578 1,535 -2.7 3,145 3,230 2.7
Rentals
451 478 6.0 1,203 1,376 14.4
Repair and maintenance
280 297 6.1 596 594 -0.3
Utilities, materials and supplies
256 428 67.2 666 919 38.0
Other subsidies and expenses
481 770 60.1 2,113 2,494 18.0
Amortization of tangible capital assets
442 470 6.3 1,327 1,522 14.7
Net loss on disposal of assets
10 12 20.0 23 35 52.2
Total other expenses
9,348 10,279 10.0 26,762 28,961 8.2
Total program expenses, excluding net actuarial losses 34,643 36,675 5.9 107,518 112,488 4.6
Public debt charges 4,614 4,169 -9.6 13,862 13,773 -0.6
Total expenses, excluding net actuarial losses 39,257 40,844 4.0 121,380 126,261 4.0
Net actuarial losses
630 335 -46.8 1,890 1,005 -46.8
Total expenses 39,887 41,179 3.2 123,270 127,266 3.2

Note: Totals may not add due to rounding.

Chart 3
Revenues and expenses (April to June 2025)
Chart 3: Revenues and expenses (April to June 2025)

Note: Totals may not add due to rounding.

Text version
Rounded, for Open Data $ billions
Revenues
Personal income taxes 53.9
Corporate income taxes 23.5
Non-resident income taxes 3.1
Other taxes and duties 20.2
Pollution pricing proceeds 2.9
EI premiums 9.0
Other revenues 11.3
Total 123.9
Expenses
Major transfers to persons 33.8
Major transfers to provinces, territories and municipalities 29.2
Pollution pricing proceeds returned 2.5
Direct program expenses 47.0
Public debt charges 13.8
Net actuarial losses 1.0
Total 127.3

Financial requirement of $30.5 billion for April to June 2025

The budgetary balance is presented on an accrual basis of accounting, recording government revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid. In contrast, the financial source/requirement measures the difference between cash coming in to the government and cash going out. This measure is affected not only by changes in the budgetary balance but also by the cash source/requirement resulting from the government's investing activities through its acquisition of capital assets and its loans, financial investments and advances, as well as from other activities, including payment of accounts payable and collection of accounts receivable, foreign exchange activities, and the amortization of its tangible capital assets. The difference between the budgetary balance and financial source/requirement is recorded in non-budgetary transactions.

With a budgetary deficit of $3.3 billion and a requirement of $27.2 billion from non-budgetary transactions, there was a financial requirement of $30.5 billion for the April to June 2025 period, compared to a financial requirement of $36.5 billion for the same period of the previous year.

Table 5
The budgetary balance and financial source/requirement
$ millions
  June April to June
  2024 2025 2024-25 2025-26
Budgetary balance (deficit/surplus)1 939 3,629 -2,882 -3,338
Non-budgetary transactions
Accounts payable, accrued liabilities and accounts receivable -5,485 -1,815 -16,200 -15,237
Pensions, other future benefits, and other liabilities 1,090 803 2,157 2,147
Foreign exchange accounts and derivatives -300 -1,600 -7,758 3,739
Loans, investments and advances -4,667 -8,370 -10,789 -16,439
Non-financial assets -854 -297 -1,052 -1,403
Total non-budgetary transactions -10,216 -11,279 -33,642 -27,193
Financial source/requirement -9,277 -7,650 -36,524 -30,531

Note: Totals may not add due to rounding.
1 Year-to-date results for 2025-26 have been adjusted by $467 million to reflect a correction to reduce the amount originally reported for personal income tax revenues for May 2025.

Net financing activities up $37.0 billion

The government financed this financial requirement of $30.5 billion and increased cash balances by $6.5 billion by increasing unmatured debt by $37.0 billion. The increase in unmatured debt was achieved primarily through the issuance of marketable bonds and treasury bills.

Cash balances at the end of June 2025 stood at $52.6 billion, up $11.8 billion from their level at the end of June 2024.

Table 6
Financial source/requirement and net financing activities
$ millions
  June April to June
  2024 2025 2024-25 2025-26
Financial source/requirement1 -9,277 -7,650 -36,524 -30,531
Net increase (+)/decrease (-) in financing activities
Unmatured debt transactions
Canadian currency borrowings
       
Marketable bonds
1,208 -2,334 -8,645 29,146
Treasury bills
379 -3,524 14,040 14,735
Total Canadian currency borrowings
1,587 -5,858 5,395 43,881
Foreign currency borrowings
285 1,064 5,348 -6,997
Total market debt transactions
1,872 -4,794 10,743 36,884
Obligations related to capital leases and other unmatured debt
-19 180 -87 110
Net change in financing activities 1,853 -4,614 10,656 36,994
Change in cash balance -7,424 -12,264 -25,868 6,463
Cash balance at end of period     40,788 52,604

Note: Totals may not add due to rounding.
1 Year-to-date results for 2025-26 have been adjusted by $467 million to reflect a correction to reduce the amount originally reported for personal income tax revenues for May 2025.

Notes

  1. The Fiscal Monitor is a report on the consolidated financial results of the Government of Canada, prepared monthly by the Department of Finance Canada. The government is committed to releasing The Fiscal Monitor on a timely basis in accordance with the International Monetary Fund's Special Data Dissemination Standards Plus, which are designed to promote member countries' data transparency and promote the development of sound statistical systems.
  2. The financial results reported in The Fiscal Monitor are drawn from the accounts of Canada, which are maintained by the Receiver General and used to prepare the annual Public Accounts of Canada.
  3. The Fiscal Monitor is generally prepared in accordance with the same accounting policies as used to prepare the government's annual consolidated financial statements, which are summarized in Section 2 of Volume I of the Public Accounts of Canada, available through the Public Services and Procurement Canada website.
  4. The financial results presented in The Fiscal Monitor have not been audited or reviewed by an external auditor.
  5. There can be substantial volatility in monthly results due to the timing of revenue receipts and expense recognition. For instance, a large share of government spending is typically reported in the March Fiscal Monitor.
  6. The April to March results reported in The Fiscal Monitor are not the final results for the fiscal year as a whole. The final results are published in the annual Public Accounts of Canada and incorporate post-March end-of-year adjustments made once further information becomes available, including the accrual of tax revenues reflecting assessments of tax returns and valuation adjustments for assets and liabilities. Post-March adjustments may also include the accrual of measures announced in the budget that are recorded upon receipt of Royal Assent of enabling legislation.
  7. Table 7, Condensed Statement of Assets and Liabilities, is included in the monthly Fiscal Monitor following the finalization and publication of the government's financial results for the preceding fiscal year, typically in the fall.

Note: Unless stated otherwise, changes in financial results are presented on a year-over-year basis.

For inquiries about this publication, contact Gina Clark at gina.clark@fin.gc.ca.

August 2025

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