MNI: Canada's 2022-23 Budget Deficit Is Near Forecast

Canada's federal budget deficit was CAD41.3 billion in the fiscal year that ended in March, according to a preliminary estimate, close to what the government estimated in its last fiscal plan.

The Finance Department's Fiscal Monitor published Friday showed the shortfall narrowed from CAD95.6 billion in the previous fiscal year. Revenue climbed 8.6% or by CAD34 billion as the end of Covid restrictions boosted activity and program expenses fell 6.5% or by CAD30 billion. Finance Minister Chrystia Freeland's March budget estimated a CAD43 billion deficit in 2022-23 and CAD40.1 billion in the fiscal year that began April 1.

The budget deficit for March widened to CAD44.4 billion from CAD25.7 billion a year earlier, the finance department said. Program expenses excluding net actuarial losses rose CAD15.7 billion or by 25% on "higher provisions for contingent liabilities and loans, and increased transfers to other levels of government." (See: MNI INTERVIEW:Busted Canada Debt Goal Means Pain Later-Ex Aide)