Federal deficit for previous fiscal year comes in lower than anticipated in budget

OTTAWA – Annual financial statements show the federal deficit for the previous fiscal year was $23.6 billion lower than the projected in the spring budget.

According to public accounts documents released Thursday, the federal deficit for the 2021-22 fiscal year was less than expected because of Canada’s strong economic recovery from the pandemic and the winding-down of pandemic supports.

The federal deficit was $90.2 billion, while the 2022 budget projected it would come in at $113.8 billion.

Revenues increased by $96.8 billion, or 30.6 per cent from 2021, when revenues were lower because of lockdowns and federal government measures, the report says.

As of March 31, 2022, federal debt was more than $1.1 trillion.

The debt-to-GDP ratio was down from 47.5 per cent in the previous fiscal year to 45.5 per cent, while public debt charges were up $4.1 billion, or 20.3 per cent, because of higher inflation.

This report by The Canadian Press was first published Oct. 27, 2022.