Higher revenues offset by increased spending and surging debt charges drive Canada's growing deficit
The federal deficit for the first half of the 2024-25 fiscal year reached $13bn, according to the Finance Department.
This figure represents a significant increase compared to the $8.2bn deficit recorded over the same period last year, as reported by BNN Bloomberg.
The department's monthly fiscal monitor highlights a $20.3bn, or 9.6 percent, rise in revenues compared to the first half of the previous fiscal year.
However, program expenses, excluding net actuarial losses and gains, grew by $21.7bn, or 11.2 percent.
This increase was attributed to higher direct program spending and elevated transfers to individuals and other levels of government.
Public debt charges surged by $5.2bn, or 22.5 percent, primarily driven by the impact of higher interest rates.
Meanwhile, net actuarial losses and gains saw a decline of $1.8bn, or 46.8 percent, during the same period.
The data reflects a combination of rising revenues and growing expenditures, underscoring the fiscal pressures faced by the federal government.
