Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MNI (OTTAWA) - Canada's budget deficit more than doubled to CAD9.8 billion over the first five months of the fiscal year compared with the previous period as spending and interest charges rose faster than revenue, the first monthly figures since Parliament's budget office said the government is on track to break its fiscal anchor.
The shortfall widened from CAD4.3 billion recorded in the previous period from April to August of last year, according to the Finance Department's Fiscal Monitor published Friday.
Program expenses excluding net actuarial losses were up CAD17.9 billion or 11% while public debt charges increased CAD4.4 billion or 23%. Revenues climbed CAD16.7 billion or 9.3%.
Finance Minister Chrystia Freeland is preparing a fall fiscal update that could trigger a non-confidence vote in Justin Trudeau's Liberal minority government and faces an opposition demand for an expensive new seniors' benefit. Parliament's independent budget officer found earlier this month this year's deficit is already tracking at CAD46 billion rather than the cap of CAD40 billion the government has promised. (See: MNI INTERVIEW: Trudeau Must Resist Bloc Budget Demand- Manley)
For the month of August, the deficit narrowed to CAD2.5 billion from the prior CAD3.1 billion.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.