Canada's Federal Deficit Reaches $7.3 Billion in First Four Months of Fiscal Year

The deficit has significantly widened from $1.2 billion during the same period last year, driven by increased spending and higher interest rates.

Federal revenues increased by $14.9 billion, or 10.2%, from April to July 2023.
Program expenses, excluding net actuarial losses, rose by $17.5 billion, or 13.5%, due to higher spending on programs and transfers to provinces and territories.
Public debt charges surged by $4.2 billion, or 28.8%, largely as a result of higher interest rates.
Net actuarial losses decreased by $0.8 billion, or 23.2%, during the same period.
On a monthly basis, Canada posted a deficit of C$4.41 billion in July, compared to C$4.86 billion in July 2023.