Projected deficit of 62.3 billion Canadian dollars (approximately 60 trillion won)... a decrease of 3 billion Canadian dollars (approximately 2.9 trillion won) from spring

Canada’s government projected a federal deficit of C$62.3 billion for fiscal 2026–27, about C$3 billion below its spring baseline, with the shortfall equal to 1.8% of GDP, the Finance Department said in its 2026 budget. The baseline deficit for fiscal 2027–28 is C$62.5 billion. The budget also modeled a global supply-disruption scenario, putting the 2026–27 deficit at C$62.4 billion and presenting it as a separate forecast under different conditions. The figures matter because they set the fiscal backdrop for Canada’s borrowing plans and spending flexibility. Watch whether the supply-disruption scenario gains traction and whether later fiscal updates keep the deficit near the 1.8%-of-GDP path.