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MNI: Canada 2021-22 Budget Deficit Below Projection at CAD96B

(MNI) Ottawa

Canada's budget deficit for the fiscal year ending-March '22 was CAD96 billion according to the Finance Department's monthly report published Friday, less than the government's projection of CAD114 billion.

The deficit improved from CAD314 billion the previous year on the economic rebound from Covid and the winding down of support programs. Revenue climbed 33% to CAD397 billion and program spending declined 21% to CAD457 billion. The monthly figures are revised later in the year in a more formal accounting.

Finance Minister Chrystia Freeland's April 7 budget allocated more than half the windfall from the rebound and projected a CAD53 billion deficit this fiscal year. Former Revenue Minister Perrin Beatty told MNI deficits clash with a central bank raising interest rates (see: MNI Interview:Canada Budget Clashes With BOC Tightening-Beatty). The fiscal year ended with a CAD25 billion March deficit compared with CAD31 billion a year-earlier.

MNI Ottawa Bureau | +1 613-314-9647 |
MNI Ottawa Bureau | +1 613-314-9647 |

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