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.
Canada's federal budget deficit widened to CAD23.6 billion from the start of the fiscal year in April through December from the previous CAD5.5 billion on higher program spending and a surge in borrowing costs.
Program spending rose CAD18.6 billion or 6.6% while revenue climbed CAD8 billion or 2.6%, the finance department reported Friday from Ottawa. Public debt charges rose 36% or CAD9.2 billion, reflecting the central bank's campaign of 10 interest-rate hikes and higher global bond yields.
For the month of December the deficit of CAD4.5 billion was wider than the prior year's CAD2 billion. Deficits over each of the last six months have been bigger than the previous year, at a time of stalling economic growth and rising unemployment.
Finance Minister Chrystia Freeland's fall fiscal update projected a CAD40 billion deficit for this fiscal year that's equal to about 1% of GDP, and deficits of a similar share of the economy over the next several years. The Liberal government continues to miss its own fiscal "anchors" and remains under pressure from the NDP for new spending under a deal where the NDP helps keep Justin Trudeau in power until 2025 when his regular four-year mandate ends.
Freeland has said the next full budget expected in coming weeks will again focus on the country's housing squeeze and her government faces a March 1 deadline from the NDP for a new public healthcare program. The Bank of Canada has suggested major new spending running ahead of the economy's potential growth could make it harder to tame inflation and lower interest rates.
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.