Canada Records Increased Budget Deficit

Date: January 31, 2024
Source: Reuters

Canada’s finance ministry reported a budget deficit of C$22.72 billion ($15.66 billion) for the first eight months of the 2024/25 fiscal year, an increase from C$19.14 billion in the same period last year. This rise is attributed to government expenditures growing faster than revenues.

Key Highlights:

• Deficit Increase: C$22.72 billion compared to C$19.14 billion year-on-year.
• Program Expenses: Rose by 11.3%, with significant increases across all major spending categories.
• Public Debt Charges: Increased by 17.4%, influenced by higher interest rates on bonds.
• Year-to-Date Revenues: Grew by 10.5%, mostly due to increased tax revenue.
• November Deficit: C$8.21 billion, more than double the C$4.01 billion deficit in November 2023.

Exchange Rate: $1 = 1.4512 Canadian dollars.