Federal government posts $41.3 billion deficit for 2022-23 fiscal year

OTTAWA – The federal government ended the 2022-23 fiscal year with a $41.3 billion deficit, slightly lower than it had forecast in its budget released in March.

The Finance Department says the result compares to a $95.6 billion deficit the previous fiscal year.

Compared to 2021-22, revenues were up $34.2 billion, or 8.6 per cent, due to improved economic growth and the fading effect of the COVID-19 pandemic.

Program expenses were down $29.9 billion, or 6.5 per cent, as the federal government wound down COVID-19 support programs.

Higher interest rates have pushed up public debt charges by $10.4 billion, or 42.0 per cent since the previous year.

Meanwhile, net actuarial losses decreased by $0.5 billion, or 5.0 per cent.

This report by The Canadian Press was first published May 26, 2023.