Federal government posts $25.7-billion deficit between April and January

OTTAWA – The federal government recorded a budgetary deficit of $25.7 billion as of the end of January for the current fiscal year.

The Finance Department says in its monthly fiscal monitor that the deficit between April and January compared with a $6.4-billion deficit during the same period a year earlier.

The fiscal monitor offers a final glimpse into the state of federal finances before Finance Minister Chrystia Freeland tables the budget on April 16.

Freeland has promised that the government will abide by the fiscal guardrails it pledged in the fall, including keeping the deficit capped at about $40 billion for the current fiscal year.

The latest figures suggest government revenues increased by $10.5 billion, or three per cent, largely due to higher personal income tax revenues, other tax revenues and non-tax revenues.

Meanwhile, program expenses excluding net actuarial losses increased by $21.2 billion, or 6.7 per cent as spending increased across all major categories.

Public debt charges rose by $10.3 billion, or 35.9 per cent, largely due to higher interest rates.

Net actuarial losses fell by $1.9 billion, or 23.2 per cent, compared with the same period a year earlier.

This report by The Canadian Press was first published March 22, 2024.