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 of CAD3.6 billion from April to November remained well ahead of the government's projection for a CAD36 billion shortfall this fiscal year, even as the November results were weaker on new tax credits and spending.
The deficit was smaller than the CAD74 billion recorded in the previous period, the finance department's monthly Fiscal Monitor report showed. The economy's re-opening after Covid restrictions lifted revenue 15% while program spending fell 14%. Public debt charges jumped 37% or by CAD6.1 billion.
For the month of November, the deficit widened to CAD3.4 billion from CAD1.4 billion a year earlier. That reflects a temporary rise in tax credits for low-income households and bigger payouts to seniors including inflation adjustments and a 10% jump in some benefits for those 75 years old and over.
Finance Minister Chrystia Freeland on Nov. 3 pared the projected deficit for this fiscal year to CAD36 billion from an earlier estimate of CAD53 billion as the economy picked up. Freeland said this week she wants to avoid making the Bank of Canada's inflation fight more difficult while facing pressure to spend on healthcare and the environment. Some experts say likely continued fiscal stimulus reduces the odds the Bank of Canada can cut interest rates this year. (See: MNI INTERVIEW: Deficit Means Little Scope For BOC Cut- Asselin)
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.