Canada records $3.55-billion budget deficit over first eight months of 2022-23

OTTAWA — Canada recorded a $3.55-billion budget deficit for the first eight months of the 202223 fiscal year, partly due to higher debt charges, the finance ministry said on Friday.

By comparison, Canada posted a $73.70-billion deficit in the period from April to November 2021.

Year-to-date revenues were up 14.8 per cent on a broad-based improvement in income streams. Program expenses were down 13.9 per cent, largely reflecting lower transfers to individuals and businesses as COVID-19 support wound down, the finance ministry said in a statement.

Public debt charges increased 35.8 per cent this fiscal year, primarily reflecting higher interest rates and higher inflation adjustments on real return bonds, which have a coupon that is linked to the level of the consumer price index.

On a monthly basis, Canada posted a deficit of $3.38 billion in November, compared to the $1.44 billion deficit recorded a year ago.