Importance Score: 45 / 100 🔵
Canada’s Budget Deficit Marginally Widens in Fiscal Year 2024-25
OTTAWA – Canada’s federal government registered a slightly larger budget shortfall of C$26.85 billion ($18.77 billion) for the initial ten months of the 2024-25 fiscal year, as government spending increased at a slightly faster pace than revenue intake, the finance ministry reported on Friday. This Canadian budget deficit figure compares to a C$25.67 billion deficit recorded during the corresponding period in the previous fiscal year.
Year-to-Date Fiscal Performance
According to the ministry’s statement, government expenditures demonstrated a robust 10.9% climb year-over-year. This increase spanned nearly all primary spending categories, with the exception of benefits for seniors and children, employment insurance, and programs related to COVID-19. Notably, public debt servicing costs experienced a significant surge of 16.2%, primarily driven by an expanding volume of marketable bonds.
- Expenditures: Rose by 10.9% across most major categories.
- Public Debt Charges: Increased by 16.2% due to a larger stock of marketable bonds.
Revenue Growth
On the revenue side, fiscal year-to-date revenues also saw a substantial 10.9% increase. This growth was primarily fueled by higher personal income tax collections, alongside increased receipts from other taxes and duties.
- Revenues: Grew by 10.9% year-to-date.
- Key Drivers: Increased personal income tax revenue and other taxes and duties.
January Budgetary Results
Examining monthly figures, Canada’s budget deficit for January amounted to C$5.13 billion. This contrasts with a C$2.06 billion deficit recorded in January of the preceding year, indicating a considerable widening of the monthly shortfall.
- January Deficit (2025): C$5.13 billion.
- January Deficit (2024): C$2.06 billion.
($1 = 1.4307 Canadian dollars)