Home › Finance-First Civics › Module 2: Government & Budgets › The Fiscal Puzzle
Interactive Activity · 10–15 min · Groups of 2–3

The Fiscal Puzzle: Balance Canada's Budget

Canada's 2025–26 federal budget has a $78.3 billion deficit. Adjust tax rates and spending to close the gap. Watch the trade-off warnings — every choice has real consequences for real Canadians.

Total Revenue
$507.5B
Taxes + other income
Total Spending
$585.9B
Programs + debt interest
Budget Balance
–$78.3B
Deficit — borrowing needed
Adjust sliders below to close the $78.3B gap

Spending — Cut or Increase

Drag sliders to change spending levels

Revenue — Raise or Lower

Change tax rates & revenue sources

Source: Budget 2025
All figures from Budget 2025 (Nov 4, 2025) and 2025–26 Main Estimates. Revenue: $507.5B. Expenses: $585.9B. Deficit: $78.3B. Canada Health Transfer confirmed at $54.7B (Canada.ca, Dec 2024). Tax brackets from CRA statistics.
Why can't I cut debt interest?
Public debt charges (~$49B) are mandatory — the government must pay interest on existing debt. You can only reduce future interest by running smaller deficits now.
Why does Bracket 1 matter most?
Every taxpayer — from minimum wage to millionaire — pays the lowest bracket rate on their first $57,375. That's why a 1pp change to the bottom rate has a $4.9B impact, while the top bracket only moves $1.4B.
Your Budget
Revenue change
+$0B
Spending change
–$0B
Final balance
–$78.3B