MNI BRIEF: Canada Plans CAD623B Of Borrowing In Fiscal 2025-26

Canada's debt management plan for the fiscal year that began April 1 was released Wednesday after delays linked to a federal election and Prime Minister Mark Carney's decision to withhold a budget until the fall, and the document shows CAD623 billion in expected borrowing with a focus on bonds over treasury bills.

Three-quarters of borrowing will be used to refinance maturing debt especially from the pandemic era, the Finance Department's report said. Cabinet has also approved a total borrowing limit of CAD733 billion. (See: MNI: Canada Approved CAD95B Geopolitical Contingency Borrowing) Bonds make up CAD316 billion of the expected borrowing and treasury bills CAD296 billion. 

"The government will increase bond issuance across the curve, with lower relative treasury bill issuance to retain flexibility to respond to unexpected financing needs. The government will continue to monitor market functioning of these sectors and may adjust issuance as needed," the report said. Market debt will climb to CAD1.62 trillion by the end of the fiscal year.