Canada’s Budget Deficit for First Four Months of 2024/25 Rises to C$7.3 Billion, Reports Reuters

OTTAWA, Sept 27 – Canada has reported a significant budget deficit of C$7.29 billion (approximately $5.41 billion) for the first four months of the 2024/25 fiscal year, as government spending outpaced revenue growth, according to a statement from the finance ministry.

In contrast, the deficit for the same period last year stood at C$1.24 billion, highlighting a considerable increase.

Program expenditures have surged by 13.5%, driven by spending increases across all key categories. Additionally, public debt charges soared by 28.8%, primarily due to rising interest rates, the ministry noted.

On the revenue side, year-to-date figures showed a growth of 10.2%, with increases across all major revenue categories.

When looking at monthly performance, Canada recorded a deficit of C$4.41 billion in July, a slight improvement from the C$4.86 billion deficit reported in July 2023.