Government’s Budget Shortfall: Canada’s $19.1B Deficit from April to November

Government’s Budget Shortfall Canada’s $19.1B Deficit from April to November

In Ottawa, the government’s money matters showed a budget shortfall of $19.1 billion from April to November in the fiscal year 2023-24. This gap between the government’s spending and what it earned is bigger than the previous year. During the same time in 2022-23, the deficit was about $3.6 billion.

Revenue and Spending

The government’s earnings, called revenues, were $281.8 billion in these eight months. This amount is 2.6% more than the $274.7 billion earned in the same period the year before.

However, the government’s spending, not counting certain losses related to future promises (net actuarial losses), was nearly $264.9 billion. This spending went up by 6.3% from almost $249.2 billion compared to last year’s same months.

Costs of Borrowing

One big reason for the higher deficit is the cost of borrowing money, known as public debt charges. These charges increased a lot – by 37.7% to $31.0 billion, from $22.5 billion the previous year. This jump is because of higher interest rates, meaning it costs more for the government to borrow money.

The losses related to future promises, or net actuarial losses, were $5.0 billion. This is a bit less than the nearly $6.6 billion in the same period the year before. This summary is based on a report first shared by The Canadian Press on January 26, 2024.