Ottawa Posts $5.5 Billion Budget Deficit

The federal government in Ottawa has announced a $5.5-billion budget deficit for the first nine months of its current 2022-23 fiscal year that ran from April to December 2022.

The federal Finance Department said the result compared with a deficit of $70 billion during the same period of its previous fiscal year when it was still providing individuals and businesses with financial support linked to the COVID-19 pandemic.

Government revenue in the nine month period amounted to $310 billion, up from $278 billion in the same period a year earlier.

The increased revenue was due largely to stronger economic growth and the ending of various pandemic supports.

Program expenses totaled $282 billion for the April through December period, down from $322 billion a year earlier, due to the end of COVID-19 measures across the country.

Public debt charges totalled $25.8 billion, up from $18.7 billion due to higher interest rates and inflation.

The Finance Department said its net actuarial losses through nine months of its fiscal year were $7.4 billion, down from $7.7 billion a year ago.

Ottawa’s fiscal year runs from April 1 to March 31.