FX.co ★ Canada Swings to Surprise Budget Surplus in December 2025

Canada’s federal budget balance moved sharply back into positive territory in December 2025, posting a surplus of 0.20 billion CAD after a significant deficit the previous month, according to data updated on 27 February 2026.

The December surplus marks a notable turnaround from November 2025, when the budget balance stood at a deficit of 8.02 billion CAD. The swing of more than 8 billion CAD over a single month underscores the volatility that can characterize fiscal positions near year-end, often reflecting shifts in revenue inflows and the timing of government expenditures.

While the data release provides no further details on the drivers of the improvement, the move from a sizable deficit to a modest surplus will likely draw attention from investors, analysts and policymakers tracking the sustainability and trajectory of Canada’s public finances heading into 2026.