Revenue grows by 9.3% as Ottawa's expenses and debt charges drive deficit higher
Canada’s federal deficit reached $9.8bn for the April-to-August period, as indicated by the latest fiscal monitor from the Finance Department, as reported by Financial Post.
This figure compares with a $4.3bn deficit recorded during the same period last year.
Revenue rose by $16.7bn, or 9.3 percent, over the same period in the previous year, attributed to growth in all major revenue categories.
Program expenses, excluding net actuarial losses, climbed by $17.9bn, or 11 percent.
The increase resulted from Ottawa’s higher spending on direct program expenses, along with major transfers to individuals and to provinces, territories, and municipalities.
Public debt charges saw a notable rise of $4.4bn, or 23.1 percent, largely due to increased interest costs on marketable bonds and treasury bills. Net actuarial losses remained unchanged during this period.
