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 CAD19.1 billion from the start of the fiscal year in April through November from the previous CAD3.6 billion on higher program spending and a surge in borrowing costs.
Program spending rose CAD15.7 billion or 6.3% while revenue climbed CAD7.1 billion or 2.6%, the finance department reported Friday from Ottawa. Public debt charges rose 38% or CAD8.5 billion, reflecting the central bank's campaign of 10 interest-rate hikes and higher global bond yields.
For the month of November, the deficit of CAD4 billion was wider than last year's CAD3.4 billion shortfall. Deficits over each of the last five months have been bigger than the previous year, at a time when economic growth was stalling out.
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 spending such as expanded public healthcare under a deal where the NDP helps keep Justin Trudeau in power until 2025 where his regular four-year mandate ends.
Government finances may be further strained by high interest rates and the drag on tax revenue from stalling economic growth and slowing inflation.
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.