MNI POLICY: Canada Apr-Nov Deficit CAD232B vs Prior CAD11.8B

Canada's federal deficit rose to a record CAD232 from April to November versus CAD11.8 billion in the year-ago period, the finance department said Friday, keeping it on a path for the projected full year shortfall of CAD382 billion.

Spending for for April to November jumped 90% to CAD386 billion while revenue fell 17% to CAD178 billion.

The deficit grew again in November with a CAD15.4 billion shortfall versus CAD2.7 billion a year earlier. Revenue declined 3.6% and program spending gained 44% from a year earlier.

Finance Minister Chrystia Freeland has said she will do whatever it takes to bring the economy out of the pandemic-induced recession, and has laid aside up to CAD100 billion of extra deficit spending beyond her projections to rebuild the economy. The government has also tied such goals to restoring all of the million jobs lost during the pandemic.

Canada's stimulus is worth about 20% of GDP according to IMF projections, the strongest of major economies, and is a factor that has allowed the Bank of Canada to start tapering its QE program.

The government's April to November financial requirement, which reflects immediate cash needs, was CAD274 billion. The government is also sitting on a cash balance of CAD94.9 billion, which it expects to use to carry out its relief programs.

The federal debt as of Nov. 30 stood at CAD958 billion.