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 recorded a CAD2.9 billion budget deficit in the first three months of the fiscal year versus a surplus of CAD3.6 billion in the previous year on higher program expenses and interest charges, the finance department said Friday.
Program spending rose 15% from April to June from a year earlier led by higher transfer payments to households and provincial and municipal governments. Part of those increases are because some major transfers are indexed to inflation that remains above the central bank's 2% target. New and expanded programs such as those intended to blunt climate change also boosted expenditures.
Charges on the public debt rose 30% reflecting higher market interest rates, which rose faster than revenue growth of 8.9%, according to the Fiscal Monitor report. For the month of June, the budget surplus declined to CAD939 million from CAD2.1 billion a year ago.
Finance Minster Chrystia Freeland's spring budget projected a CAD39.8 billion deficit in the fiscal year that began April 1, or 1.3% of GDP, pledging another new fiscal anchor of keeping the shortfall below CAD40 billion. Experts have told MNI that with an election due late next year the Liberals may bring in major new spending in next year's pre-election budget, or perhaps in a fiscal update due in the fall. (See: MNI INTERVIEW: Canada Budget Leans To Largesse - CFIB's Kelly)
Source: Department of Finance
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.