Government spending grows as revenue increases, but higher interest rates push debt charges up 28.8%
The federal government's deficit has reached $7.3bn for this fiscal year, according to BNN Bloomberg.
The Finance Department's latest fiscal monitor states that this deficit, measured from April to July, is an increase from the $1.2bn deficit reported during the same period last year.
Revenues during the four-month span rose by $14.9bn, representing a 10.2 percent increase from April to July 2023.
However, program expenses, excluding net actuarial losses, grew by $17.5bn, or 13.5 percent, due to increased federal spending on programs and transfers to provinces and territories.
Public debt charges also rose by $4.2bn, or 28.8 percent, driven by higher interest rates. Meanwhile, net actuarial losses decreased by $0.8bn, or 23.2 percent.
