OTTAWA — As Ottawa prepares to table Prime Minister Mark Carney’s first budget on Tuesday, the federal government reported a hefty deficit.

For the period between April and August in the current fiscal year, the Department of Finance posted a $11.1 billion deficit — up $1.3 billion from the same five-month period last year.

Expenses likewise saw an increase this year over last, aided by increased program spending on EI benefits, fall out from Canada’s high unemployment rate.

Canada’s jobless rate for September 2025 saw record highs unseen since Aug. 2021, holding at the same 7.1% figures seen in August.

Unemployment over the summer largely fell from the 7.0% seen in May, holding steady at 6.9% in June and July — and far higher than 2025’s lows of 6.6% seen in January and February.

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