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Canada’s federal budget sinks to C$1.96 billion deficit

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Staff writer ▼ | May 27, 2016
Canada’s federal budget swung back into deficit for the fiscal year that ended in March as program spending rose faster than tax revenue.
Canada deficit
Fiscal year   Revenue in Canada grew 3.8 percent to C$290 billion
The deficit, which excludes the impact of a benefit for veterans, was C$1.96 billion ($1.5 billion), according to Finance Department figures published Friday.

In its March 22 budget, the governing Liberal Party projected a year-end deficit of C$5.4 billion. Finance Department officials indicated the final numbers, to be released later this year, would be closer to what the government forecast.

The figures now show revenue grew 3.8 percent to C$290 billion on the year. Program spending rose 6.6 percent to C$266 billion. Public debt charges were lower, declining 4.1 percent to C$25.5 billion.

In March, the final month of the fiscal year, revenue fell 17 percent to C$24.1 billion, compared with a year earlier, while program spending increased 4.4 percent to C$31.5 billion. That resulted in a deficit for the month of C$9.44 billion.