Ottawa wrote off $4.5B in COVID benefit repayments last year: auditor general

OTTAWA — The Office of the Auditor General of Canada says the federal government wrote off billions of dollars last year for COVID-19 benefits that are no longer expected to be paid back.

The federal government is trying to recoup payments made to Canadians during the COVID-19 pandemic if it determines someone was overpaid or ineligible for the benefit.

But when the government expects not to be paid back, it writes off the debt and strikes it from its ledgers.

Audits of the government’s consolidated financial statements for the last fiscal year show Ottawa wrote off $4.5 billion tied to COVID-19 benefits — up sharply from $26 million the previous year.

Auditor General Karen Hogan’s office also warns that Ottawa is expecting a larger portion of business loans from the pandemic will not be repaid.

The government’s allowance for potential losses on Canada Emergency Business Account loans increased to $5.6 billion in the last fiscal year, out of a total $7.2 billion in loans outstanding.

This report by The Canadian Press was first published Nov. 9, 2026.